Taiwan’s exports in January show strong growth again, Q1 overall strong

  • Taiwan Jan exports +16.7% y/y vs +17.2% Reuters poll
  • Jan imports +24.9% y/y vs. +25.0% in a poll
  • The Ministry of Finance expects February exports of +13% to +15% y/y
  • Double-digit export growth maintained in the first quarter

TAIPEI, Feb 11 (Reuters) – Taiwan’s exports rose for a 19th straight month in January, albeit at a slightly slower pace than expected, boosted by continued strong tech demand and stockpiling ahead of the Lunar New Year, with strong growth expected in the first quarter.

Last month, exports rose 16.7 percent from a year earlier to $39.98 billion, the finance ministry said Friday.

A Reuters poll of analysts forecast a rise of 17.2% for the month, compared to a 23.4% increase in December. Read more

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Exports rose 29.4% in 2021 to a record high, supported by robust global demand for the island’s tech products, from semiconductors to telecommunications equipment.

The ministry attributed January’s growth to strong demand for technology exports such as electronic components as well as microchips, the shortage of which has crippled car factories around the world and is affecting consumer electronics.

Exports were also boosted by stockpiling ahead of the Lunar New Year holiday in the first week of February, he added.

Exports of electronic components rose 19.7% in January to $15.91 billion, with exports of semiconductors up 20.9% and telecommunications and audio-visual products up 14.3% from last year. the previous year.

Many companies expect chip shortages to last at least the rest of the year, which will continue to fill the order books of Taiwanese semiconductor companies.

Taiwan Semiconductor Manufacturing Co Ltd (TSMC) on Thursday reported a 35.8 percent year-on-year increase in net revenue for January to T$172.18 billion ($6.19 billion).

Companies such as TSMC are major suppliers to Apple Inc (AAPL.O) and other global tech giants, as well as suppliers of chips to automakers and low-end consumer electronics.

The Ministry of Finance warned of risks ahead, including uncertainty over the COVID-19 pandemic as well as supply chain bottlenecks and Sino-U.S. frictions.

But he said Taiwan’s exports in the first quarter could maintain double-digit growth, thanks to sustained global demand for technology products like chips as well as steadily improving global economic fundamentals.

January exports to China, Taiwan’s largest trading partner, rose 5.7% year-on-year to $15.70 billion, compared to a 16.2% year-on-year rise in December, while exports to the United States jumped 34.2%, faster than the previous 29% increase. month.

Imports jumped 24.9%, in line with economists’ expectations of a 25% rise, after rising 28.1% in December.

Taiwan could see its exports increase in February by around 13 to 15 percent from a year earlier, the ministry said.

($1 = 27.8230 Taiwan dollars)

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Reporting by Roger Tung and Ben Blanchard; Editing by Kim Coghill

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