Taiwan’s June export orders rise again, outlook is bullish
- June orders + 31.1% yoy vs. + 29.45% in the Reuters poll
- Orders from China + 36.7% year-on-year; United States + 24% y / y
- Ministry sees July orders increase between + 15.7% and + 18.9% year-on-year
- Ministry sees good prospects for demand for high-end chips
TAIPEI, July 20 (Reuters) – Taiwan’s export orders rose more than expected in June and the government said the outlook for the island’s tech products remained strong amid demand for high-end chips and before the end of year holiday season.
Taiwan’s export orders, an indicator of global technology demand, jumped 31.1% from a year earlier to $ 53.73 billion in June, ministry data showed on Tuesday. of Economic Affairs.
It was the 16th month of expansion and the pace was faster than the median forecast of a 29.45% increase in a Reuters poll.
The ministry attributed the strong performance to demand for 5G and semiconductors, especially from automakers, as the world grapples with a chip shortage.
Demand for home electronics like laptops to support the “home economy”, with the COVID-19 pandemic still restricting the movement of millions of people around the world, also remained strong, the ministry added.
In May, export orders jumped 34.5% from a year earlier to reach $ 52.29 billion.
Taiwanese companies such as Foxconn (2317.TW) and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) (2330.TW) are major suppliers to Apple Inc (AAPL.O) and other global technology companies.
Looking ahead, the ministry warned of uncertainty over the spread of COVID-10 variants around the world, but saw a benefit in rising vaccination rates and the global economy recovering. .
The start of the second half of the year is when companies start preparing new products for the holiday season, while demand for 5G and other high-end applications, as well as for automotive electronics will also help Taiwan’s orders, the ministry added.
He expects export orders in July to increase between 15.7% and 18.9% from the previous year.
Orders from the United States jumped 24% in June from a year earlier, a slower pace of expansion from 28.1% recorded in May, while orders from China rose. increased by 36.7%, against a gain of 40% the previous month.
Orders from Europe rose 24.3%, while those from Japan rose 28.4%.
Report by Jeanny Kao and Ben Blanchard; Editing by Simon Cameron-Moore
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