Taiwan exports notch new record on AI boom, recovery in shipments to China
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Taiwan’s exports rose to a new monthly record high in August, as the artificial intelligence boom continues to fuel demand for semiconductor equipment, while exports to China recovered.
Total exports reached a record $43.64B in August, up nearly 17% from a year ago, data from Taiwan’s finance ministry showed. Shipments to the U.S. rising about 79% to an all-time high of $11.89B.
The ministry attributed the record levels to strong business for AI and high-performance computing, as well as new machine stocking and shipment delays in July due to Typhoon Gaemi.
Taiwan’s exports to China – its largest trading partner – edged up 1% Y/Y to $13.11B in August, compared to July’s 13.5% decline.
The finance ministry expects total exports to steadily advance in the second half of the year, helped by the peak export season and continued AI-related demand.
“A supportive base effect should keep export growth in the double digits over the next few months, but with the current reliance on computer exports to the U.S., if this category starts to slow, Taiwan’s exports could face an outsized impact,” ING Economic and Financial Analysis noted.
Taiwan Semiconductor Manufacturing (NYSE:TSM), Taiwan’s largest company and the world’s biggest contract chipmaker, counts Apple (AAPL) and Nvidia (NVDA) as its top customers, among other tech players.