Taiwan's Export Orders Surge: AI Fuels a Tech-Driven Boom

Fueled by Artificial Intelligence and High-Performance Computing, Taiwan's Export Orders Witness a Remarkable Rise.

Taipei, April 22 - Riding the wave of technological advancement, Taiwan's export orders experienced a significant upswing in March, bolstered by the increasing global demand for artificial intelligence applications and other emerging technologies. The Ministry of Economic Affairs (MOEA) announced a remarkable 12.5% year-on-year increase, reaching a total of US$53.04 billion.

This surge in March followed a substantial 31.1% increase in February. The first quarter of this year saw Taiwanese firms' export orders rise by 12.1% year-on-year to US$149.47 billion, marking the second-highest level ever recorded for the January-March period.

According to Huang Yu-ling (黃于玲), Director of the MOEA Department of Statistics, the local tech sector is thriving due to the boom in AI, high-performance computing (HPC) devices, and cloud services. The information and communications industry saw an 11.4% increase in export orders, totaling US$14.81 billion, with a notable US$930 million year-on-year rise in orders from American buyers.

The electronics industry also demonstrated robust performance, with IC suppliers and distributors leading the charge, boosting orders by 21.8% to US$20.11 billion in March. While IC designers experienced a downturn, the overall industry showed strong growth. The optoelectronics industry saw a 10.4% increase, reaching US$1.89 billion, driven by the demand for semiconductor testing devices and flat panels.

However, the old economy sector faced challenges, with base metal, plastics/rubber, and chemical industries recording declines in export orders. The machinery industry, however, saw a 2.3% increase, driven by the demand for automation devices and tool machines.

Notably, orders from the U.S. surged by 30.7%, reaching US$18.85 billion, and orders from ASEAN countries also saw a substantial increase of 26.3%, reaching US$8.83 billion.

The MOEA anticipates continued growth, predicting that demand for AI, HPC, and cloud applications will further drive demand for high-end semiconductor processes and servers. However, concerns regarding tariffs and geopolitical uncertainty are expected to create challenges. The MOEA forecasts export orders to range between US$50 billion and US$52.0 billion in April, representing a 6.2-10.4% increase.