Taiwan’s export performance in February significantly exceeded expectations, driven by a surge in demand for artificial intelligence (AI) related technologies. This increase comes as buyers anticipate potential new tariffs proposed by the United States.
According to Taiwan’s finance ministry, February exports reached $41.31 billion, a remarkable 31.5% year-on-year increase. This figure nearly doubles the 17.0% growth predicted by a Reuters poll and marks the 16th consecutive month of export growth. The ministry attributed this surge to preemptive ordering by customers concerned about impending U.S. tariff uncertainties. Furthermore, the ongoing expansion of AI applications continues to fuel strong demand for Taiwanese technology.
Taiwanese companies, including TSMC, the world’s leading contract chip manufacturer, play a crucial role in the global tech supply chain, providing essential components to major players like Apple and Nvidia. These companies are at the forefront of developing and producing the advanced technologies driving the AI revolution.
While geopolitical risks, including potential tariffs, pose challenges to Taiwan’s economic outlook, the accelerating adoption of AI and its related applications provide a powerful counterbalance. This technological momentum is expected to sustain export growth throughout the first and second quarters of the year. However, the ministry anticipates a slight dip in March, projecting a 1% month-on-month decrease but a 2% year-on-year increase.
A closer examination of the February data reveals significant regional variations. Exports to China, Taiwan’s largest trading partner, rebounded strongly with a 27.9% increase, contrasting sharply with the 11.72% contraction in January. Meanwhile, exports to the United States soared by an impressive 65.6% year-on-year, reaching $11.77 billion, a substantial leap from the 0.7% growth recorded in January.
The electronics sector spearheaded Taiwan’s export growth. Electronic component exports rose by 24.6% to $14.44 billion, with semiconductor exports mirroring this growth at 24.6%. This underscores the central role of advanced technologies in driving Taiwan’s economic performance. The robust export performance was accompanied by a significant increase in imports, which jumped 47.8% to $34.76 billion, exceeding economists’ forecasts of a 19.2% gain. This suggests a healthy level of domestic demand and further strengthens the positive outlook for Taiwan’s economy.
In conclusion, despite looming trade uncertainties, Taiwan’s February export figures demonstrate the resilience of its technology sector, fueled by the global demand for AI-related technologies. The strong performance suggests continued growth in the coming months, underpinned by the ongoing innovation and global integration of Taiwan’s key industries.
