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Taiwan July Exports Miss Forecasts, but AI Demand Holds

TAIPEI, Aug 7 (Reuters) - Taiwan's exports rose less than expected in July, continuing to ride the wave ​of AI demand while contending with the undercurrents ‌of global inflation and the economic uncertainties of a prolonged war in the Middle East.

Exports jumped 32.9% from a year ​earlier to $75.30 billion, the finance ministry said on ​Friday, falling below both the 40.7% gain forecast ⁠by analysts and the 40.3% rise in June.

Here are ​a few details:

  • Artificial intelligence and high-performance computing businesses continue ​to grow, boosting supply chain shipments.

  • The global economic growth outlook would be limited by uncertainties of geopolitical risks and U.S. trade ​policy, but Taiwanese exports will continue to grow ​in the second half of the year.

  • For August, the ministry expects ‌exports ⁠to rise 31% to 35% from a year earlier.

  • In July, Taiwan's exports to the U.S. rose 25.2% from a year earlier to $23.34 billion, while exports to China ​gained 33.4%.

  • Exports of ​electronic components ⁠jumped 50.5% to $27.733 billion, while those of information products rose 29.5%.

  • Imports were up ​37.4% to $58.13 billion, below economists' forecasts for ​an increase ⁠of 51.8%.

  • Taiwanese companies like TSMC, the world's largest maker of advanced chips used to power AI applications, are ⁠major ​suppliers to Nvidia, Apple and other ​leading tech companies.

Reporting by Faith Hung and ​Emily Chan; Editing by Toby Chopra and Mrigank Dhaniwala

Source: Reuters


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