TAIPEI (Taiwan News) — According to the Ministry of Economic Affairs (MOEA), Taiwan’s export orders in July reached US$50.03 billion (NT$1.596 trillion), a year-on-year increase of 4.8%, exceeding expectations and amounting to five consecutive months of growth.

The MOEA attributed the growth in export orders to strong demand for AI. Furthermore, the second half of the year is typically peak season for consumer electronics, which has led to an uptick in export orders, per UDN.

MOEA Department of Statistics Director Huang Yu-ling (黃于玲) said opportunities for growth continue to exist in the consumer electronics segment, predicting a quarter-by-quarter increase in orders. For example, MOEA expects August export orders to increase 11% year-on-year.

Last month, the MOEA had reduced its forecast for July export orders from 2.6% to 1.6%, though in fact export orders reached US$50.03 billion, a month-on-month increase of 9.8%,and an annual increase of 4.8%.

Moreover, monthly export orders topped the US$50 billion threshold for the seventh consecutive month, stretching back to last November. Among the seven categories for export goods, only chemicals showed a year-on-year decrease, while the other six categories all showed positive growth.

Huang said that July’s export orders not only reflect strong demand for emerging technology applications such as AI but there was also growth in mainstream technologies such as laptops and tablets.

As for cell phone orders, Huang said July is typically a period when many upgrade. While a significant increase in cell phone orders has yet to occur, upstream electronics companies are beginning to increase inventories of components, leading to more orders memory, printed circuit boards, and passive components.

MOEA data shows orders for information and communication products in July were US$14.13 billion, a monthly increase of 10.9% and an annual increase of 11%. The increase was due to booming demand for artificial intelligence and cloud services, which drove server orders.

Orders for electronic products in July reached US$18.1 billion, a record high for the same month over previous years, with a monthly increase of 16.5% and an annual increase of 2.2%. 

Orders for optical equipment reached US$1.78 billion, a month-on-month decrease of 0.4% and a year-on-year increase of 7.8%. This was due to the stocking of new mobile phone products, which drove the growth of orders for optical lenses. Also, there was an increase in orders for optical inspection and measurement equipment.

Looking to the future, the MOEA warned about uncertainty regarding monetary policy trends in developed countries, geopolitical risks, and technology disputes between the United States and China that may inhibit the recovery of the global economy.

The MOEA said the domestic semiconductor industry and related supply chains continue to enjoy competitive advantages. As consumer electronics enter peak sales in the second half of the year, Taiwan’s export orders are expected to see more growth.