May export orders grew 47.2%

UPWARD TREND: Orders surged for a 16th consecutive month as demand for artificial intelligence and computing-related wares expanded across the globe

Export orders last month rose 47.2 percent year-on-year to US$89.48 billion, the 16th consecutive month of increases and the second-highest monthly level on record, the Ministry of Economic Affairs said yesterday.

The increase decelerated from the 48.1 percent annual increase recorded in April, but was in line with the ministry’s forecast of 46.4 percent to 49.7 percent growth.

Cumulative orders in the first five months of this year grew 49 percent annually to US$408.83 billion, ministry data showed.

Trucks are loaded with containers at the Port of Keelung on Friday.

The robust performance last month was driven by strong demand for artificial intelligence (AI) and high-performance computing applications, which boosted orders for information and communications technology (ICT) products and electronic components, Department of Statistics Director-General Huang Wei-jie (黃偉傑) told a news conference in Taipei.

Last month, orders for ICT products surged 67.2 percent year-on-year to US$32.37 billion, as continued demand from AI and cloud service providers boosted orders for servers and networking products, Huang said.

Orders for electronic components rose 61.2 percent to US$37.24 billion, driven by strong sales at IC and memory distributor manufacturers, he said.

By contrast, orders for optoelectronic products fell 1.7 percent to US$1.89 billion, as weak demand for flat panels used in televisions and automobiles weighed on sales, he added.

Traditional industries saw improving order momentum last month, Huang said.

Machinery orders rose 22.5 percent to US$2.17 billion, driven by semiconductor capacity expansion and strong demand for automation equipment, while base metal orders rose 9.6 percent to US$2.16 billion, supported by recovering steel demand and higher copper prices, he said.

Orders for chemical products rose 5.3 percent to US$1.47 billion, and those for plastic and rubber products fell 0.9 percent to US$1.46 billion, he said.

Export orders this month are expected to rise 49.8 to 53.1 percent year-on-year to between US$89.5 billion and US$91.5 billion, Huang said.

Orders in the second quarter of this year are expected to increase 48.3 percent to 49.5 percent to between US$266.4 billion and US$268.4 billion, he said.

The figure for the first half of the year could increase as much as 49.7 percent to exceed US$500 billion, Huang said, adding that orders in the second half could surpass that of the first half on continued robust AI investment.

Taiwan’s traditional industries are expected to recover gradually as the global economy might be nearing a bottom and inflation pressure eases, Huang said, citing a forecast by S&P Global.

For the whole year, export orders could exceed US$1 trillion on continued strong demand for AI-related products, provided no major geopolitical disruptions occur, he said.