Expanded June exports by 24.6 percent
**Taiwan's Export Orders Surge on AI Demand and New Product Launches**
Taiwan's export orders experienced a significant boost in the second quarter of 2022, driven primarily by the surge in demand for artificial intelligence (AI) and new product launches. According to the Ministry of Economic Affairs, export orders expanded by 24.6 percent year-on-year last month, reaching US$56.77 billion, surpassing the ministry's estimate of US$53 billion to US$55 billion.
The growth was particularly notable in the information and communication technology (ICT) and electronics sectors, which form the backbone of Taiwan's tech manufacturing industry. The demand for AI systems, including semiconductors, chips, and components, propelled this growth.
The first half of 2022 also saw a considerable increase in export orders, with the total reaching US$320.57 billion, a growth of 16.6 percent year-on-year. The growth was driven by robust demand for AI applications and high-performance computing, as well as the launch of new AI products globally, including AI chips and devices.
Taiwanese firms, such as Taiwan Semiconductor Manufacturing Company (TSMC), have been integral suppliers to leading AI companies worldwide. The government and industry have responded to this demand by investing in advanced AI manufacturing and R&D facilities. Initiatives involving Nvidia and Foxconn to build AI factories and R&D hubs in Taiwan have enhanced Taiwan's role as an AI innovation center.
However, the export order outlook for the second half of 2022 is not without risks. The Ministry of Economic Affairs has noted potential headwinds such as U.S. tariff uncertainties and global economic shifts, which could temper growth despite the underlying AI demand strength.
Despite a slight decrease in orders last month compared to May, industry experts expect the strong AI-related demand to persist in the second half. Server makers are expected to launch new products in the second half, which could help sustain order momentum. Shipments of consumer electronics could also be unaffected if consumer spending rebounds, potentially due to an improvement in the economy if tariffs do not affect it in the second half.
In summary, the surge in AI-related demand and new product launches starting in 2022 have strongly propelled Taiwan’s export orders, particularly from the ICT and electronics sectors, making Taiwan a pivotal supplier in the global AI ecosystem. While facing trade tensions and tariff risks, Taiwan’s industry has capitalized on this demand through enhanced investment and production capacities supporting AI technologies.
- The surge in demand for artificial intelligence (AI) and new product launches have significantly contributed to the growth of Taiwan's technology industry, propelling export orders in the second quarter of 2022.
- The expansion of Taiwan's export orders, particularly in the information and communication technology (ICT) and electronics sectors, has been driven by the increasing demand for AI systems, including semiconductors, chips, and components.
