Saturday, June 3, 2023

Taiwan June export orders surge again, outlook bullish By Reuters


© Reuters. FILE PHOTO: A woman walks under Taiwan’s landmark building Taipei 101 in Taipei, Taiwan July 27, 2017. REUTERS/Tyrone Siu

TAIPEI (Reuters) – Taiwan’s export orders grew by more than expected in June and the government said the outlook for the island’s tech goods remains strong on demand for high-end chips and ahead of the year-end holiday shopping season.

Taiwan’s export orders, a bellwether of global technology demand, jumped 31.1% from a year earlier to $53.73 billion in June, data from the Ministry of Economic Affairs showed on Tuesday.

That was the 16th month of expansion and the pace was faster than the median forecast of a rise of 29.45% in a Reuters poll.

The ministry attributed the strong performance to demand for 5G and semiconductors, especially from auto makers, as the world grapples with chip shortages.

Demand for home electronics like laptops to support the “home economy”, with the COVID-19 pandemic still restricting the movement of millions around the world, also remained strong, the ministry added.

In May, export orders surged 34.5% from a year earlier to$52.29 billion.

Taiwan companies such as Foxconn and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) are major suppliers to Apple Inc (NASDAQ:) and other global tech firms.

Looking ahead, the ministry warned of uncertainly over the spread of COVID-10 variants around the world, but saw an upside in climbing vaccination rates and the recovery of the global economy.

The start of the second half of the year is when companies start preparing new products for the year-end holiday season, while demand for 5G and other high end applications, as well as auto electronics, will also help Taiwan’s orders, the ministry added.

It expects export orders in July to rise between 15.7% and 18.9% from a year earlier.

Orders from the United States jumped 24% in June from a year earlier, a slower rate of expansion compared with the 28.1% logged in May, while orders from China were up 36.7%, versus a gain of 40% the previous month.

Orders from Europe rose 24.3%, while those from Japan were up 28.4%.

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