Taiwan’s Exports Soar to Highest Levels in 15 Years

In November, Taiwan’s exports surpassed expectations, achieving the fastest growth in 15-1/2 years. The island’s chips and artificial intelligence (AI) technology continued to be in high demand globally, propelling the total value of exports to $64.05 billion, a remarkable 56% increase from the previous year. This marks the 25th consecutive month of export growth, surpassing economists’ predictions of a 41.1% increase as reported by a Reuters poll.

Setting a new record in November, Taiwan’s exports exhibited their most substantial growth since May 2010. This impressive performance is even more noteworthy considering the 20% tariff enforced on Taiwan’s exports to the U.S., a situation currently under negotiation to alleviate, with the exclusion of semiconductors at present. The steady climb in Taiwan’s export figures is anticipated to continue being bolstered by the ongoing expansion of AI and high-performance computing applications, coupled with the peak season for year-end shopping in Western markets, according to the finance ministry.

Looking ahead, the finance ministry announced its forecast of a 30% year-on-year growth in exports to reach $600 billion by 2025. Despite these positive projections, the statement acknowledged the prevailing uncertainties in the global economic landscape, characterized by evolving U.S. tariff policies and lingering geopolitical risks, necessitating vigilant monitoring. Notably, Taiwanese companies like TSMC (2330.TW), the foremost contract chipmaker globally, play critical roles as major suppliers to prominent tech giants such as Nvidia (NVDA.O) and Apple (AAPL.O).

As December unfolds, the ministry foresees a further increase in exports by 40% to 45% compared to the previous year. The robust growth in November saw exports to the U.S. surge by an astounding 182.3%, reaching a record high of $24.418 billion, while exports to China also experienced a notable upturn of 16.5%. Notably, electronic components export saw a substantial rise of 29.3% to $21.632 billion, contributing significantly to the overall growth.

Despite the positive momentum in exports, imports also surged in November, registering a 45% increase to $47.97 billion, surpassing economists’ expectations of a 17.45% rise. This dual increase in both exports and imports showcases the resilience of Taiwan’s trade sector amidst changing global dynamics. The overall picture painted by these statistics conveys a narrative of strength and adaptability in Taiwan’s export landscape, emphasizing the indispensable role played by the island nation in the global supply chain.