Taiwan Exports Reach Record High in August Driven by AI, U.S. Achieves New Record, Reports Reuters

TAIPEI (Reuters) – Taiwan’s exports surged more than anticipated in August, reaching a record monthly high of nearly $44 billion. This increase was driven by growing demand for chips to support the expanding Artificial Intelligence (AI) sector, effectively offsetting challenges posed by weakened demand from China.

According to the finance ministry, exports rose by 16.8% year-on-year to a record $43.64 billion. This figure exceeded the projected increase of 7.35% from a Reuters poll and a modest gain of 3.1% in July, marking the tenth consecutive month of growth.

The ministry stated, "August’s export value hit a new peak as business in AI and high-performance computing remained robust, along with international brands preparing for new product launches."

Looking ahead, the ministry anticipates a "gradual upward slope" in growth during the second half of the year, noting the upcoming peak season for exports due to the year-end holiday shopping trends in Western markets such as the United States and Europe.

Taiwanese companies, including TSMC, the largest contract chipmaker globally, are key suppliers for major tech firms like Apple and Nvidia.

For September, the ministry forecasts a year-on-year export growth of between 5% and 9%.

In August, exports to the United States jumped 78.5% to $11.89 billion, marking another record high after a 70.3% increase in July. Conversely, shipments to the largest trading partner, China, saw a modest rise of 1.0%, rebounding from a significant decline of 13.5% the previous month.

Total electronic component shipments edged up 0.1% in August from the previous year to reach $15.15 billion, although semiconductor exports experienced a slight decline of 0.5%.

Imports also rose, increasing by 11.8% to $32.14 billion in August, although this fell short of economists’ expectations for a 15.0% gain.