Taiwan exports end 17-month losing streak with surprise growth

Taipei

TAIWAN exports ended a 17-month losing streak boosted by demand for electronic parts as US tech giant Apple prepares to launch its new iPhone series, the government said on Monday.

Exports last month grew 1.2 per cent from July 2015, surprising analysts who had predicted another month of contraction.

Traditionally a technology manufacturing hub, Taiwan has been hit by slowing smartphone demand and stiffer competition from regional firms including those from China.

July's exports "benefited from continued increase in demand for semiconductors", the finance ministry said on Monday, adding it was the first positive growth since January last year.

Electronic components - the largest among export categories - rose 5.7 per cent from the same period last year, according to the statement. Leading Taiwanese firms such as Foxconn and TSMC are among Apple's suppliers.

The island's exports are getting a lift ahead of the release of Apple's new iPhone 7 series, according to Barclays analyst Angela Hsieh, who had forecast a slide of 1.7 per cent for July.

The boost came earlier than analysts had expected, with the launch date now rumoured to be in September.

"Many of the Taiwanese suppliers are preparing for the launches and now is the season to see the ramping up," she said.

But Ms Hsieh said whether the positive growth will last depends on how well the smartphones sell.

Factors include the attractiveness of new iPhone features as well as political uncertainties in developed markets such as Europe, she said.

Better-than-expected exports also helped to bring Taiwan out of recession in the April-June quarter, the statistics bureau said last month.

It comes after new president Tsai Ing-wen pledged to kickstart growth, including establishing a "Silicon village" for Asia and diversifying the economy. AFP