Taiwan’s Export Value Reaches $31.43 Billion in February: A 1.3% Year-Over-Year Increase Amid Robust Demand for ai Applications
February’s Export Value: A 1.3% Year-Over-Year Increase for Taiwan
According to a report from the South China Morning Post (SCMP), published on Friday, February 2023 saw another increase in export value for Taiwan. The East Asian country recorded an export value of $31.43 billion last month, marking a 1.3% increase compared to the same period in the previous year. This was the fourth consecutive month of export gains for Taiwan, albeit with a weaker increase compared to the previous months.
Weak Growth in February Attributed to Lunar New Year Holiday
Analysts attributed the weaker growth in exports during February to the Lunar New Year holiday, which lasted for a week. The Taiwan economy ministry had predicted that export orders would drop between 11% and 15.7% year-over-year due to the holiday break. With the festivities now behind us, analysts expect that Taiwan’s exports will experience strong growth in the coming months as a result of the burgeoning demand for artificial intelligence (ai) gears and applications.
The Role of ai in Taiwan’s Tech Exports
In its statement, the ministry acknowledged that the “strong demand for new applications of high-performance computing and artificial intelligence” has been the primary driver behind Taiwan’s tech exports over the past few months.
ai to Drive Export Growth in 2024
Many analysts believe that the growing demand for ai will be the main growth driver for Taiwan’s exporters throughout most of 2024. According to Tony Phoo, an economist with Standard Chartered Bank in Taipei, “ai continues to be the driving force, and it’s helping to cushion an otherwise very subdued market for other electronics.”
Taiwan’s Top Export Markets
Some of Taiwan’s largest export markets include the United States, China, and Hong Kong. According to the report, mainland China and Hong Kong together accounted for the largest export from Taiwan in February, with a value of $9.17 billion. The United States accounted for $7.11 billion of the exports, marking a 50.3% year-over-year increase.
Key Sectors of Taiwan’s Export Value
The value of shipments of information, communications and audiovisual products from Taiwan increased by 104.6% to $85.08 billion. Conversely, the value of electronic components fell by 10.4% to $11.59 billion.
In conclusion, Taiwan’s export value in February experienced a modest but consistent increase compared to the previous year, driven by the robust demand for ai applications. Analysts predict that this trend will continue throughout most of 2024, with ai being the main growth driver for Taiwan’s exporters. The United States and China, along with Hong Kong, remain Taiwan’s largest export markets, with significant demand for both high-performance computing and artificial intelligence applications.
