Export orders set monthly record

USUAL SUSPECTS: Export orders for goods related to the AI boom such as GPUs, ASIC-based systems, and other information and communication products surged

• By Meryl Kao / Staff Reporter

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Export orders last month rose 62.4 percent year-on-year to US$114.21 billion, the 20th consecutive month of increases and the highest monthly level on record, driven by strong demand for artificial intelligence (AI), high-performance computing and cloud service applications, the Ministry of Economic Affairs said yesterday.

The stronger-than-expected orders, exceeding the ministry’s forecast of 50.7 to 55.1 percent annual growth, partly reflected robust demand for new consumer electronic products, particularly new smartphone models, Department of Statistics Director-General Huang Wei-jie (黃偉傑) said at a news conference in Taipei.

Last month, orders for information and communication technology products surged 87.3 percent to US$43.88 billion, driven by continued expansion in AI, data center and cloud service industries, as well as increased demand for consumer electronics, Huang said.

Cargo ships are anchored at the Port of Kaohsiung on Sept. 29.

Photo: CNA

In particular, demand was strong for new-generation graphics processing unit-based servers as well as application-specific integrated circuit (ASIC) based servers, with ASIC-based systems growing at a faster pace, he said.

Demand increased for networking products, smartphones, notebook computers and industrial PCs, he added.

Orders for electronic components rose 71 percent to US$47.42 billion, driven by orders for IC design, distribution and manufacturing services, as well as memory products, Huang said.

Orders for optoelectronic products fell 5.6 percent to US$1.97 billion on slowing demand for flat-panel products, he added.

Traditional industries saw improving order momentum last month, with machinery orders rising 21.5 percent to US$2.19 billion, driven by semiconductor capacity expansion and strong demand for automation equipment, while base metal orders increased 29.7 percent to US$2.43 billion, supported by AI supply-chain demand for copper foil and copper-clad laminates, Huang said.

Orders for chemical products rose 22.8 percent to US$1.71 billion, bolstered by higher petrochemical product prices amid rising fuel costs, while orders for plastic and rubber products increased 11.4 percent to US$1.53 billion, he said.

Export orders in the third quarter increased 65 percent year-on-year to NT$315.1 billion, and cumulative orders in the first nine months rose 56 percent to US$819.2 billion, a record for the period and exceeding last year’s full-year total, ministry data showed.

The order momentum could continue this month and next month, Huang said, predicting orders this month would rise 62 to 67 percent to between US$112.5 billion and US$115.9 billion.

Export orders in the first 10 months of this year are expected to rise 56.6 to 57.3 percent to between US$931.7 billion and US$935.1 billion, while full-year orders could reach US$1.1 trillion as fourth-quarter orders increase during the peak season, he said.

Traditional industries could also see continued order growth through the rest of this year, buoyed by strength in AI-related supply chains, Huang said.