Taiwan July exports misses forecasts on weak China demand, but U.S. soars
2024.08.08 09:45
By Jeanny Kao and Faith Hung
TAIPEI (Reuters) – Taiwan’s exports rose less than expected in July as weak demand from China offset record orders from the United States which underscored the island’s essential role as a supply hub for the booming artificial intelligence (AI) industry.
Exports rose 3.1% from a year earlier to $39.94 billion, the finance ministry said on Thursday, but missed the 6.13% forecast in a Reuters poll and trailed a 23.5% gain in June. It was the ninth consecutive monthly rise.
Performance was softer than expected because the “global economic recovery has been mild and Typhoon Gaemi caused fewer days of productivity and temporary delays in delivery,” the ministry said in a statement.
The second half of the year should see a “gradual upward slope” in growth as exports enter their peak season, the ministry said, adding that demand may be further boosted as AI applications expand into end-user products.
Taiwanese firms such as TSMC, the world’s largest contract chipmaker, are major suppliers to Apple (NASDAQ:), Nvidia (NASDAQ:) and other tech giants.
The ministry predicted exports in August could jump between 6% and 9% from a year earlier.
In July, exports to the United States jumped 70.3% to $11.45 billion, a record monthly high, compared with a 74.2% surge in June. Shipments to China – Taiwan’s largest trading partner – were down 13.5% versus the previous month’s 7.3% gain.
Total shipments of electronic components fell 12.0% in July from a year earlier to $13.73 billion, with semiconductor exports dipping 12.8%.
Imports jumped 16.2% to $35.1 billion in July, above economists’ forecasts for a 11.2% gain.
