In February, Taiwan recorded yet another increase in export value amid robust demand for AI applications, SCMP reported Friday.
Taiwan, whose main exports comprise phones, PCs and components such as semiconductors, recorded an export value of $31.43 billion in February, marking a 1.3% increase year-over-year and the fourth consecutive month of gain, although last month’s increase was weaker compared to the other months.
Analysts Blames Lunar New Year Break for February’s Weak Growth
Analysts blamed the weak gain last month on the Lunar New Year holiday, which lasted for a week. In late February, the Taiwan economy ministry had said they expected export orders to drop between 11% and 15.7% from a year earlier due to the holiday break.
With the festivities now behind, analysts expect strong growth in Taiwan’s exports amid the burgeoning demand for AI gears and applications.
In its statement, the ministry acknowledged that the “strong demand for new applications of high-performance computing and artificial intelligence” has been the driver behind the growth of the country’s tech exports these past months.
AI to Keep Taiwan Exporters Busy in 2024
Many analysts also note that the growing demand for AI will be the main growth driver that keeps Taiwan exporters busy for the better part of the year.
“AI continues to be the driving force, and it’s helping to cushion an otherwise very subdued market for other electronics,” said Tony Phoo, an economist with Standard Chartered Bank in Taipei.
Some of Taiwan’s biggest export markets are the United States, China, and Hong Kong. Per the report, mainland China and Hong Kong together accounted for the largest export from Taiwan in February, at a value of $9.17 billion. The U.S. accounted for $7.11 billion of the exports, a 50.3% increase YoY.
The value of shipments of information, communications and audiovisual products from Taiwan increased by 104.6% to $85.08 billion, while that of electronic components fell 10.4% to $11.59 billion.
