Taipei: Taiwan's export orders saw a significant rise, exceeding 20 percent from the previous year in December, marking the 10th consecutive month of growth, driven by robust global demand for emerging technologies, as reported by the Ministry of Economic Affairs (MOEA) on Tuesday.
According to Focus Taiwan, the popularity of artificial intelligence applications, high-performance computing devices, and cloud services has fueled a 20.8 percent increase in Taiwan's export orders to US$52.92 billion in December, following a 3.3 percent rise in November. The MOEA highlighted that this growth was not only due to technological advancements but also the semiconductor industry's eagerness to expand capacity and increase orders from Taiwanese suppliers, especially as buyers prepared for the Lunar New Year holiday.
MOEA's data revealed that export orders for 2024 as a whole rose 5.1 percent from the previous year, reaching the third-highest level ever at US$589.54 billion, only behind the figures from 2021 and 2022. Notably, this growth reversed a 15.9 percent decline in 2023.
In December, the demand for AI and cloud applications boosted orders for servers and web communications devices, with the information and communications industry receiving a 24.3 percent increase in export orders to US$15.25 billion. Similarly, the electronics industry experienced a 33.5 percent rise, reaching US$19.92 billion, driven by solid demand for AI and HPC devices, which led to substantial orders for electronic component suppliers, including IC manufacturers and designers, as well as printed circuit board makers.
The optical equipment industry saw a 17.7 percent increase in export orders to US$1.89 billion, propelled by rising demand for flat panels and optical testing equipment. Meanwhile, the machinery industry recorded a 6.0 percent increase to US$1.74 billion, benefiting from semiconductor suppliers' efforts to enhance production capacity amid strong global demand during the AI era.
Conversely, the base metal industry faced a 4.5 percent decline in export orders, totaling NT$2.05 billion, due to a weak steel market and price competition. The chemical industry also experienced a 0.6 percent drop to US$1.46 billion, affected by a global petrochemical supply glut. On the other hand, the plastics and rubber industry saw a 5.5 percent rise in export orders to US$1.59 billion ahead of the Lunar New Year holiday.
The United States emerged as the largest foreign buyer, placing US$18.29 billion in export orders in December, marking a 31.0 percent increase, ahead of China and Hong Kong, which placed US$11.45 billion in orders, up 13.6 percent. The MOEA projected that January export orders would range between US$44.5 billion and US$46.5 billion, representing a 4.0-8.1 percent decline due to fewer working days during the Lunar New Year holiday from January 25 to February 2.