Taiwan exports surge to record as AI demand outweighs Iran woes

[TAIPEI] Taiwan’s exports jumped to an all-time high as rampant global demand for artificial intelligence chips eclipsed supply chain uncertainties unleashed by the US war in Iran. 

Overseas shipments rose almost 62 per cent in March versus a year earlier, far exceeding the 34.7 per cent estimate in a Bloomberg survey of economists, according to the Ministry of Finance. The export total came in at US$80.2 billion, marking a record single-month high.

A ministry statement attributed the surge to booming international demand for AI-related technology. 

“Observing recent export data from various Asian countries, it can be seen that Taiwan and South Korea both have key advantages in the AI ​​boom,” Beatrice Tsai, the Finance Ministry’s chief statistician, said at a briefing in Taipei.

Imports rose 38.3 per cent from a year earlier, also surpassing the 17.4 per cent median estimate. The island recorded a trade surplus of US$21.3 billion in March.

“Going forward, however, the focus will be on supply disruptions over the chip supply chain,” Michelle Lam, Greater China economist at Societe Generale, said in a message. “Important materials such as natural gas and helium are being disrupted at the moment,” she said, adding that the risks could rise if the Iran conflict lasts beyond a couple of months.

SEE ALSO

TSMC’s Q1 revenue jumps 35% year on year, beats market forecasts

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

The ministry expects April exports to grow between 44 and 51 per cent from a year ago. BLOOMBERG