The finance ministry said on Friday that while the decline in Taiwan’s exports in August was less severe than anticipated, they may resume growing in September in time for the year-end holiday shopping season.
According to the government, August exports decreased 7.3% from a year earlier to $37.36 billion, the lowest dip and first drop in the single digits since October. This was more than the 8.05% decrease predicted by a Reuters survey and contrasted with a 10.4% decline in July.
Taiwan’s GDP resumed growth in the second quarter despite the standstill of exports, the island’s main economic engine. This was made possible by strong domestic spending.
The ministry predicted improved export performance in the coming months when orders typically increase ahead of the busy holiday shopping season. This year’s expected growth in demand for high-performance computing, artificial intelligence, data centers, and automotive electronics is anticipated to be the main driver of this forecast.
The ministry forecasted a result for September that could range from a 2% decrease to a 2% gain in exports.
The entire value of electronic component shipments in August dropped by 11.2% from the previous year to $15.14 billion, with semiconductor exports down by 10.4%.
In addition to significant suppliers to Apple Inc. (AAPL.O), Nvidia (NVDA.O), and other global tech giants, Taiwanese businesses like TSMC (2330. TW), the world’s biggest contract chipmaker, also provide semiconductors for automobile manufacturers and lower-end consumer products.
On Friday, TSMC announced a 13.5% year-over-year decline in August sales.
Taiwan’s exports to China decreased by 14.1% from a year earlier in August to $12.98 billion, after a 16.3% decline in July.
After declining an annual 3.3% in July, exports to the United States increased 8.8% in August.
The amount of completed goods imported into Taiwan in August, often used as a leading indicator, decreased by 22.9% to $28.77 billion. Comparatively, economists had predicted a 16.3% decline.
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