TAIPEI- Taiwan’s export orders likely rose in April for the 26th straight month, a Reuters poll showed on Thursday, supported by the pandemic-led demand for technology products, although global economic woes pulled down the pace of export growth.
The median forecast from a poll of 15 economists expects export orders to rise 8.3 percent from a year ago. Forecasts for growth ranged from 3.8 percent to as high as 14.4 percent.
The island’s export orders, a bellwether of global technology demand, rose 16.8 percent to $62.69 billion in March year-on-year, outperforming expectations and the highest figure for the month on record.
However, the government has predicted April orders will only grow between 1 percent and 3.8 percent, compared with the year-ago period, due to the Ukraine conflict and global supply bottlenecks.
Taiwan’s export orders are a leading indicator of demand for hi-tech gadgets and Asian exports, and typically lead actual exports by two to three months.
The island’s manufacturers, including the world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd, are a key part of the global supply chain for technology giants including Apple Inc.
The data for April will be released on Friday.
Taiwan’s exports rose for a 21st straight month in March to a new record in line with forecasts, boosted by continued strong tech demand, though the government warned of continued supply chain uncertainty and the effect of the war in Ukraine.
Exports jumped 21.3 percent from a year earlier to $43.5 billion, the Ministry of Finance said, the highest monthly figure on record.
A Reuters poll of analysts had forecast a 21 percent rise for the month, compared with a 34.8 percent leap in February.
The ministry attributed the March growth to strong demand for electronic components as well as semiconductors, and companies increasing orders to ensure supplies to customers.
Exports of electronics components rose 35.6 percent in March to $18.24 billion, also a monthly record, with semiconductor exports surging 38.2 percent from a year earlier.
Many companies expect global chip shortages to last at least for the rest of the year, which will continue to fill Taiwanese semiconductor firms’ order books.
Firms such as TSMC, the world’s largest contract chip-maker, are major suppliers to Apple Inc and other global tech giants, as well as providers of chips for auto companies and lower-end consumer electronics.
Earlier on Friday, TSMC reported March sales of T$171.97 billion ($5.95 billion), up 33.2 percent from the same period last year.
The finance ministry said “enormous” demand for chips would continue to drive exports, but warned of uncertainty over the COVID-19 pandemic, the ongoing war in Ukraine, supply chain bottlenecks and inflation.
Ministry official Beatrice Tsai said the second quarter would likely continue to see double-digit growth, but that it was “hard to see” rapid growth continuing in the second half.
March exports to China, Taiwan’s largest trading partner, grew an annual 13.4 percent to $18.03 billion, compared with a 39.9 percent on-year rise in February, while exports to the United States jumped 36.6 percent, slightly slower than the 40.3 percent rise recorded the previous month.
Imports leapt 20.3 percent, in line with economists’ expectations of a 20.5 percent rise, after an increase of 35.3 percent in February.
Taiwan could see April exports increase in the range of 13 percent to 17 percent from a year earlier, the finance ministry said. — Reuters
