Taiwan exports fall for the fourth straight month; uncertainty darkens outlook

TAIWAN’S export orders contracted for a fourth straight month in December, hit by slumping Chinese demand and weaker global consumer spending due to inflation and interest-rate hikes.

The island’s export orders, a bellwether for global technology demand, slid 23.2 per cent from a year earlier to US$52.17 billion, the Ministry of Economic Affairs said on Tuesday (Jan 31). That was better than the 25.6 per cent decline forecast by analysts.

December’s drop followed a 23.4 per cent fall in November. Still, it was the third-highest figure in value terms for the month, the ministry added.

Huang Yu-ling, director of the ministry’s statistics agency, told reporters: “To see a reverse trend in orders, it still hinges on end-user demand. So far, we have not heard positive news.”

She said that first-quarter orders could be affected by global demand, which continues to be weak, as well as a high base from last year.

Orders for telecommunications products plummeted 24.1 per cent from a year earlier due to weaker consumer demand, especially in China, the ministry said, adding that the number also came off a high base.

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Meanwhile, orders for electronic products fell 20.9 per cent, though the decline was offset by demand for chips for high-performance computing, 5G and cars.

While semiconductor demand driven by those new technologies would help orders, there were also big uncertainties ahead, the ministry said. It cited global economic downturns amid high inflation, interest-rate hikes and the war in Ukraine.

It also expected export orders this month to be lower than in January 2022 by 32.1 per cent to 35.5 per cent.

Taiwanese companies, such as Taiwan Semiconductor Manufacturing, are major suppliers to Apple, Qualcomm and other global tech corporations.

The island’s December orders from China nosedived 37.7 per cent from the year earlier, compared with November’s year-on-year fall of 37.3 per cent. Month-on-month orders from China rose 3.6 per cent, helped by the lifting of Covid-19 controls there.

Taiwan’s orders from the United States also fell. The December decline was 14.7 per cent from a year earlier, while a drop of 16.7 per cent was recorded in the previous month.

Export orders from Europe declined by 23.9 per cent, compared with November’s year-on-year fall of 26.3 per cent. Orders from Japan expanded 5 per cent. REUTERS