Taiwan’s Export Orders Surpass Expectations Despite Seasonal Decline
Taiwan’s export orders reached US$52.27 billion in November 2023, marking the ninth consecutive month of year-on-year growth. The Ministry of Economic Affairs (MOEA) released data on Friday showing a strong demand for key products despite a slight dip in export value compared to October.
While November’s export orders showed a 5.7 percent decline compared to the previous month, the year-on-year increase of 3.3 percent demonstrates Taiwan’s robust international trade performance, driven largely by the global demand for high-tech industries such as artificial intelligence (AI), high-performance computing, and cloud technology.
Growth Driven by Strong Demand in Technology and Electronics Sectors
The electronic products sector continues to lead Taiwan’s export order growth, accounting for US$19.09 billion of the total, marking the second-highest amount recorded for the same period. This represents a 7.2 percent year-on-year increase. The strong demand in areas such as AI applications, cloud computing, and large-size panel TVs helped boost orders, particularly in optical equipment and other related components.
The rise in TV demand for stockpiling purposes also contributed to the solid growth of large-size panel orders, which totaled US$1.78 billion, a 7 percent increase from the previous year, according to the MOEA.
Taiwan’s Accumulated Export Orders Show Positive Momentum in 2023
For the period from January to November 2023, Taiwan’s accumulated export orders totaled US$536.62 billion, reflecting a 3.7 percent increase from US$517.2 billion in the same period in 2022. Despite short-term fluctuations in some sectors, Taiwan has experienced upward growth across key product categories, including machinery, plastics, rubber, basic metals, and chemicals.
The MOEA has set an optimistic forecast for Taiwan’s export orders in 2024, predicting a range between US$586.1 billion and US$588.1 billion. This would represent a year-on-year increase of 4.5 to 4.8 percent and the third-highest performance on record, signaling a positive turnaround after two years of decline.
Historical Export Performance and Future Projections
In 2021, Taiwan’s export orders peaked at a record high of US$674.13 billion, followed by a slight decline to US$666.79 billion in 2022. In 2023, Taiwan’s total export orders reached US$561.04 billion, making it the third-highest level on record, despite challenges in the global market.
The MOEA’s forecast for 2024 shows promising growth prospects, driven by continued demand in the electronics and technology sectors, alongside growth in traditional industries such as machinery and chemicals.
Table: Key Export Orders Data for November 2023
| Indicator | Amount (US$) | Year-on-Year Change |
|---|---|---|
| Total Export Orders (Nov 2023) | 52.27 billion | +3.3% |
| Electronic Products Orders | 19.09 billion | +7.2% |
| Optical Equipment Orders | 1.78 billion | +7.0% |
| Accumulated Export Orders (Jan-Nov 2023) | 536.62 billion | +3.7% |
| Forecast for 2024 | 586.1 – 588.1 billion | +4.5% to +4.8% |
FAQs:
Q1: What factors are driving Taiwan’s export order growth?
A: The growth is largely driven by global demand for high-tech industries, particularly artificial intelligence, high-performance computing, and the cloud sector. Additionally, the electronics and optical equipment sectors have shown strong year-on-year performance.
Q2: How did Taiwan’s export orders perform compared to October 2023?
A: Taiwan’s export orders in November 2023 totaled US$52.27 billion, which represents a 5.7 percent decline from October. However, it showed a 3.3 percent increase compared to November 2022, highlighting sustained year-on-year growth.
Q3: What are the major industries contributing to Taiwan’s export growth?
A: The major contributing sectors include electronics, particularly in AI, cloud computing, and high-performance computing, as well as optical equipment and large-size panels for TVs.
Q4: What are the projections for Taiwan’s export performance in 2024?
A: The Ministry of Economic Affairs projects Taiwan’s export orders in 2024 to reach between US$586.1 billion and US$588.1 billion, marking a 4.5 to 4.8 percent year-on-year increase and signaling strong growth in key sectors.
Q5: What were Taiwan’s export order levels in 2021 and 2022?
A: Taiwan’s export orders peaked at a record US$674.13 billion in 2021. In 2022, the total export orders slightly declined to US$666.79 billion, with further stability in 2023 at US$561.04 billion.
