Taiwan's July Export Orders Surpass Expectations Due to AI Chip Demand

Taiwan's export orders unexpectedly increased in July, driven by a surge in demand for chips used in artificial intelligence, reports Reuters. The Ministry of Economic Affairs anticipates that this momentum will continue into August.

In July, export orders soared by 4.8% to $50.03 billion compared to the previous year. This figure surpassed the predicted 2.6% increase from a Reuters poll and exceeded June’s 3.1% growth. These orders serve as a key indicator of global technology demand, particularly reflecting Taiwan’s prominent tech firms, including chip manufacturer TSMC.

The Ministry highlighted that stronger-than-expected orders primarily stemmed from robust demand for high-speed computing. Additionally, preparations for new consumer electronic products are expected to sustain orders' growth in the latter half of the year. In July, orders for telecommunication products rose by 11.0% year-on-year, while electronic product orders increased by 2.2%.

Orders from China showed a slight decline of 0.1%, contrasting with a 3.5% rise in June. In contrast, orders from the United States surged by 14.3%, exceeding June’s 3.7% growth. The Ministry forecasts that export orders in August will increase by 6.7% to 11.0% compared to the previous year.

Orders from Europe experienced a 6.1% uptick in July, slightly lower than June's 6.3% increase. Additionally, Japan saw a 2.4% increase in orders last month, a turnaround from a 9.2% decline in June.

Earlier, SSP reported that Google expands AI summaries in search to six new countries.