Taipei: Amid optimism over long-term AI development, the Ministry of Finance (MOF) has forecast that the current momentum seen in Taiwan's exports will continue into the second half of this year, with the total value expected to surpass US$850 billion in 2026.

According to Focus Taiwan, on Friday, the ministry released July trade data showing Taiwan's outbound sales rose 32.9 percent from a year earlier to US$75.30 billion, marking the 33rd consecutive month of year-on-year growth. The July exports were the third-highest ever, trailing US$80.18 billion in March and US$78.48 billion in May. In the first seven months of this year, the country's exports rose 44.7 percent from a year earlier to US$491.95 billion.

MOF Department of Statistics Director Beatrice Tsai told reporters that despite concerns over an AI bubble affecting global stock markets, Taiwanese suppliers remained optimistic about their business outlook. Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) has raised sales growth guidance and increased its capital expenditure budget for 2026 to meet the robust AI demand.

AI is expected to continue generating significant business opportunities for suppliers in Taiwan, with the long-term upward trend remaining unchanged, Tsai said. Additionally, Taiwan has entered the traditional peak export season and is expected to see momentum grow further in the second half of this year, she added.

Tsai noted that it is conceivable for Taiwan's exports to surpass US$850 billion this year, breaking the 2025 record of US$640.75 billion, which itself was 34.9 percent higher than in 2024. Taiwan's exports to its five major markets - the United States, China and Hong Kong, the ASEAN bloc, Europe, and Japan - posted double-digit growth in July.

In July, the United States purchased US$23.34 billion worth of Taiwan-made goods, maintaining its status as the nation's largest buyer. China and Hong Kong came in second, purchasing US$19.17 billion in goods from Taiwan, a new monthly high. Since the beginning of this year, exports to China and Hong Kong have also maintained mid-to-high growth, she added.

Exports to the ASEAN bloc rose 16.8 percent from a year earlier to US$13.58 billion in July due to strong demand for electronic components, while exports to Europe totaled US$5.06 billion in July, soaring 57.6 percent year-on-year. Also, exports to Japan surged 41.4 percent from a year earlier to US$3.27 billion, the second-highest level in history, driven by AI development. Tsai expressed optimism about Taiwan's exports to the five markets and expects new record highs in 2026.