Taiwan June export orders surge again, outlook remains bullish
Taiwan’s export orders, a bellwether of global technology demand, jumped 31.1 per cent from a year earlier to $53.73 billion in June, data from the Ministry of Economic Affairs showed
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 per cent 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 per cent in a Reuters poll.
The ministry atributed 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 per cent 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 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 per cent and 18.9 per cent from a year earlier.
Orders from the United States jumped 24 per cent 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 per cent, versus a gain of 40 per cent the previous month.
Orders from Europe rose 24.3 per cent, while those from Japan were up 28.4 per cent.
Taiwan’s exports rose for a 12th straight month in June, and exceeded expectations, boosted by strong semiconductor exports which logged a record monthly high, with the outlook strong on pandemic-driven demand around the world for technology.
Exports rose 35.1 per cent from a year earlier to $36.65 billion last month, the Ministry of Finance said on Wednesday, the second highest monthly figure on record.
Analysts in a Reuters poll had forecast a rise of 30.3 per cent for June, compared with a 38.6 per cent increase in May.
Taiwan’s exports likely rose for a 12th straight month in June, a poll showed, lited by demand for electronic goods from the global economic recovery and as more people work and study from home.
Demand for Taiwan’s semiconductors and other electronic components showed signs of abating in May as growth in overseas orders for technology products slowed.
Export orders grew 34.5 per cent from a year earlier to $52.3 billion in May, Taiwan’s Ministry of Economic Affairs said Monday.
That was lower than the 42.1 per cent increase economists had forecast in a Bloomberg survey, but still a record for the month of May.
Officials see demand easing slightly, predicting orders will increase by between 28.1 per cent and 31.7 per cent in June.
The data is a leading indicator for future demand for goods from Taiwan’s companies, and includes products produced at factories abroad.
A similar trend was seen in South Korean early trade data for June, with the surge in exports slowing, according to official data released Monday. Korean shipments in the first 20 days of this month rose almost 30 per cent, lower than in April and May, but still at a high level.
The Korean and Taiwanese data are closely watched as early barometers of the Asian tech cycle. Orders for electronics and communication equipment to Taiwan’s firms, the two largest categories, both slowed last month.
Taiwan’s factories have been running at -- or close to -- full capacity for much of this year, trying to meet overseas demand for semiconductors. Manufacturing production expanded in May at the fastest pace since 2011 but shortages of materials may slow growth, according to a report by IHS Markit earlier this month.
The robust health of Taiwan’s export sector comes despite multiple headwinds in May.
An outbreak of Covid-19 led to island-wide restrictions with clusters of infections among migrant workers affecting production at a number of factories in Miaoli County.
The worst drought on record also let manufacturers shipping in their own water and triggered rolling blackouts.