Aug 08, 2022 05:11AM ET
By: AnalysisWatch
Taiwan's exports rose in July on continued demand for technology products, with shipments to China increasing, and while the government said the outlook was good for semiconductors, it warned of growing uncertainty about the global economy.
Exports increased 14.2 percent year on year to $43.32 billion in July, according to the Treasury, the second-highest monthly figure on record, and increased for the 25th consecutive month.
That was slightly slower than the 15.2% increase recorded in June but better than the 11.65% expansion predicted by a Reuters poll.
The ministry attributed the fast pace to strong demand for technology, particularly for chips ahead of the year-end holiday shopping season, with supply chain problems easing.
July exports to China, Taiwan's biggest trading partner, rose 3% year-on-year to $16.04 billion, after contracting 4.5% in June, suggesting a softening of the disruptions caused by the COVID-19 outbreaks in the country.
Total exports of electronic components in July rose 15.6% to $16.96 billion, with semiconductor exports jumping 17.4% from a year earlier.
Many companies expect the global chip shortages to last at least for the rest of the year, which will continue to boost the order books of Taiwanese semiconductor companies.
Companies such as TSMC, the world's largest contract chipmaker, are major suppliers to Apple Inc. (NASDAQ:AAPL) and other global tech giants, as well as chip providers for automotive and lower-end consumer electronics.
The Treasury Department warned of a "high degree of uncertainty" for the global economy due to the war in Ukraine and inflationary pressures even with sustained chip demand.