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Taiwan Exports Seen Rising For 19th Month on Chip Demand

Economists polled by Reuters expect Taiwan’s exports rose further in September after hitting $53bn in August


Shipping containers are seen at Keelung port in northern Taiwan in this file photo from March 2016 by Tyrone Siu, Reuters.

 

Taiwan‘s export orders likely rose in September for the 19th straight month, a Reuters poll showed on Monday, buoyed by strong chip demand as the world emerges from the pandemic, while the year-end holiday shopping season also aided sentiment.

The median forecast from a poll of 17 economists expects export orders to jump 17% from the year-ago period. Forecasts for growth ranged from 6.5% to as high as 26%.

Taiwan‘s export orders are a leading indicator of demand for hi-tech gadgets and Asia’s exports, and typically lead actual exports by two to three months.

The island nation’s export orders, a bellwether of global technology demand, leapt 17.6% from a year earlier to $53.5 billion in August, a strong performance but less than forecast on unexpectedly weaker demand for new smartphones.

Taiwan‘s manufacturers, including the world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd, are a key part of the global supply chain for technology giants such as Apple Inc.

Shares of TSMC rose more than 3% on Friday after the firm posted higher-than-expected profit in the third quarter and flagged tight supplies will likely continue into 2022 amid booming demand during the Covid-19 pandemic.

The rise compared with a 1.3% increase in the broader market.

Taiwan’s export data for September will be released on Wednesday.

 

• Reuters with additional editing by Jim Pollard

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years and has a family in Bangkok.

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