COVID demand sees record Taiwan export orders in August

September 27, 2020

TAIPEI - Taiwan's export orders gained 13.6% on-year to reach US$45.49 billion in August, a record high for the period backed by global demand for the country's high-tech products.

The Ministry of Economic Affairs said that among major export sectors, orders for information and communication technology products soared 26.4% to US$13.23 billion. The Ministry said the strong showing stemmed from continuing need for telecommunication products during the COVID-19 pandemic.

 Orders for electronics, components and parts also posted a double-digit increase, surging 28.2% to a record US$14.02 billion for the period.

The MOEA attributed this to new business opportunities created by remote work and schooling, which continued to generate orders for Taiwan companies' chipsets, memory modules and related products and services.

 Orders for machinery and optoelectronic products increased 7% and 5.4%, respectively, from last year. These gains were offset by underperforming basic metals, petrochemicals and plastic and rubber products, which dropped 2%, 20.1% and 3%, respectively.
 Taiwan's top source of orders remained the U.S., up 19.5% to US$13.7 billion, followed by China and Hong Kong, up 21% to US$12.88 billion; Europe, up 21.2% to US$8.12 billion; and ASEAN member states, up 5.5% to US$4.13 billion.
 The MOEA said it remains optimistic about the outlook for electronics and ICT products, with new devices scheduled to launch in coming months during the traditional high season for consumer spending. Taiwan's other export sectors are also expected to benefit as governments around the world continued to roll out economic stimulus measures.
 The Ministry expressed caution, however, regarding friction between China and the U.S. as well as fallout from the ongoing pandemic, warning the impact of these factors on Taiwan remains uncertain. (ATI).