Friday, October 7, 2022

Taiwan’s Feb exports surge due to Ukraine war

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TAIPEI: Taiwan’s exports increased for a 20th consecutive month in February. This time, it was at a higher rate than expected, driven by continued demand for technology however, Taiwan’s central bank has warned that that supply chains could be affected should the conflict in Ukraine persists for a prolonged period and then gets more severe.

The number of exports in February grew 34.8 percent over one year ago to $37.45 billion according to the Ministry of Finance announced on Tuesday, the highest ever figure for a month of February.

A Reuters survey of analysts predicted a gain of 15.5 percent in the month of February, compared to an increase of 16.7 percentage rise in January.

Exports increased 29.4 percent in 2021 to an all-time record, helped by the strong demand worldwide for the island’s technological products ranging from semiconductors to telecom equipment.

The ministry attributes the growth in February to a high consumer demand for electronics, as well as chips, in conjunction with the ease of certain shortages of materials and the effects of delayed delivery.

The beginning of February was celebrated by Lunar New Year holiday.

The exports of electronic components grew 46.5 percent in February to $15.73 billion and semiconductor exports increasing 48.9%from the previous year.

Taiwan

Many companies anticipate the shortage of chips in the world to be present for at least the remainder of the year. Then, they will continue to take up Taiwanese semiconductor companies’ order books.

Firms like TSMC have been key supplier of chips to Apple Inc and other tech giants across the globe and are also major suppliers of auto makers with chips and consumer electronics that are lower-end.

The central bank of Taiwan, in an update that was sent the lawmakers Tuesday warned lawmakers that the conflict in Ukraine may affect Taiwan’s trading relations, and the longer it continues and the more deteriorating it gets.

However, the report states that chips’ supply chain had enough inventory and a variety of sources of supply, and there is little or no immediate impact.

However, the minister of finance said Taiwan’s first quarter exports would continue to show double-digit growthdue to “huge” demand for chips.

Exports from February to China the country that is Taiwan’s biggest trading partner, increased at an annual 39.9 percent in value to $15.76 billion, which is compared to an 5.7 percent growth on a year-over-year basis in January. Exports towards America United States jumped 40.3% more than the 34.2 percent growth recorded in during the month prior.

Imports jumped 35.3 percent, exceeding analysts’ expectations of the 19.65 percentage increase, following the rise of 24.9 percent in January.

Taiwan may see exports in March rise by 15 percent to 20% over an earlier year The finance ministry has stated.

Source: https://telecom.economictimes.indiatimes.com

 

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