Taiwan’s Export Orders Climb 39.5% to Reach US$72.92 Billion

Taiwan’s export orders surged by an impressive 39.5 percent year-on-year, reaching US$72.92 billion in November 2023, according to the Ministry of Economic Affairs. This marks the tenth consecutive month of double-digit growth and represents the highest monthly figure recorded. The increase also reflects a 5.1 percent rise from the previous month, significantly surpassing the ministry’s earlier projection of between US$66.7 billion and US$68.7 billion.

The growth in export orders was primarily driven by a stronger-than-expected demand for server and chip orders, as highlighted by Huang Wei-jie, Director-General of the Department of Statistics. For the first 11 months of this year, total export orders rose 24.2 percent annually, amounting to US$666.65 billion, a record for this period.

Strong Demand Forecast for December

Looking ahead, the Ministry anticipates continued robust order momentum in December, projecting export orders could reach between US$72 billion and US$74 billion. This forecast corresponds to an annual increase of between 36.1 percent and 39.8 percent. Further projections estimate fourth-quarter orders will rise between 33.4 percent and 34.6 percent year-on-year, totaling between US$214.3 billion and US$216.3 billion.

Full-year export orders are expected to achieve a new high, with an estimated increase of between 25.3 percent and 25.6 percent, reaching between US$738.7 billion and US$740.7 billion. Should the momentum for server orders continue, the annual total could even exceed US$750 billion if December orders approach US$83.35 billion.

Impact of New Tariffs and Market Trends

The announcement of new tariffs by Mexico on goods from countries without a free-trade agreement, including Taiwan, has raised some concerns. However, Huang noted that the impact would likely be limited, as only about 3 to 4 percent of Taiwan’s total exports go to Mexico, and approximately 70 percent of these goods consist of information and communications technology (ICT) products, which are exempt from the tariffs.

In addition, the Executive Yuan’s Office of Trade Negotiations has confirmed unchanged or reduced tariffs for 82 items, further alleviating potential impacts on trade.

In November, export orders for electronic components soared by 47.9 percent year-on-year, largely fueled by demand for integrated circuits (ICs) and memory chips used in artificial intelligence (AI) and high-performance computing applications. The surge in memory prices also contributed to this growth. Orders for ICT products rose dramatically by 69.4 percent, propelled by advancements in AI and cloud services that bolstered demand for servers and networking equipment.

Conversely, the optoelectronics sector experienced a decline, with orders falling by 2.4 percent, ending a streak of growth that lasted 13 months. This downturn was attributed to weakened demand for flat panels and backlight modules.

Traditional industries faced challenges as well. Export orders for plastic and rubber products decreased by 15.8 percent, while base metals saw a slight drop of 0.5 percent and chemical product orders fell by 12.5 percent. These declines are partly due to ongoing pressures from US tariffs and competition from lower-priced imports from China.

As Taiwan navigates these dynamic markets, the government’s proactive strategies and robust demand for emerging technologies like AI may help sustain its export growth trajectory into the coming months.