Taiwan’s Export Orders Soar in April, Fueled by Tech Demand and AI Optimism

In April, Taiwan’s export orders surged beyond expectations, marking the fastest growth in two years. According to Reuters, the island’s economy ministry reported a substantial 10.8% increase from the previous year, amounting to $47.1 billion. This growth surpassed the 4.5% gain projected in a Reuters poll and significantly outpaced March’s modest 1.2% uptick.

The surge in export orders, a key indicator of global technology demand, reflects Taiwan’s position as a hub for tech giants like TSMC. Despite potential challenges such as high interest rates in the US and Europe, China-US trade tensions, and broader geopolitical uncertainties, Taiwan remains optimistic. The economy ministry emphasized the strong demand for semiconductor and server supply chains driven by high-performance computing and the expanding applications of artificial intelligence (AI).

Looking forward, the ministry anticipates further growth, projecting a year-on-year increase in export orders ranging from 1.8% to 6.2% for May. April’s figures showed notable increases in orders for telecommunication products (up 8.4% from the previous year) and electronic products (up 22.7% year-on-year).

Notably, orders from China surged by 16.3% compared to a 7.7% increase in the previous month, while orders from the United States saw a significant rebound, rising by 11.8% after a 2.2% decline in March. Orders from Europe, though still slightly down by 0.2%, showed improvement from March’s 6.2% decrease.

Conversely, orders from Japan experienced a decline of 10.5% in April, an improvement from the previous month’s contraction of 18%.