Taiwan expected to report June export order growth: MOEA

2017/07/14 20:04:29
CNA file photo

CNA file photo

Taipei, June 14 (CNA) Taiwan is expected to report another year-on-year increase in export orders for June on the back of solid global demand for high-tech devices, the Ministry of Economic Affairs (MOEA) said Friday.

Lin Li-chen (林麗貞), director of the MOEA's Department of Statistics, told CNA that after a strong showing in the first half of this year, the ministry remains upbeat about the second half of the year, as the global electronics sector has entered its annual peak season.

The MOEA is scheduled to release its June export order data on July 20. If the data points to a year-on-year increase, as the ministry has forecast, it will be the 11th consecutive month in which Taiwan's export orders have grown from a year earlier.

In May, Taiwan's export orders rose 9.1 percent from a year earlier to US$36.81 billion, as the world economy remained on the road to recovery, offsetting the impact of slow-season effects for many electronics suppliers during the month.

Orders received by Taiwanese contract notebook computer and server makers increased, pushing up orders in the information/communications technology sector by 8.2 percent from a year earlier in May, while orders placed for Taiwan-made electronic components rose 4.5 percent from a year earlier on strong demand for semiconductors.

Lin said that buying in notebook computers remained stable, and that server demand has been boosted by intensified efforts by the global high-tech sector to develop the Internet of Things and the Internet of Vehicles.

Lin added that an acceleration in high speed computing and cloud technology development also boosted demand for Taiwan-made electronics.

Although prices of select raw materials such as crude oil were trending lower, an economic recovery in the U.S. and European markets has lent support to pricing in the local old economy sector, which has given more support to Taiwan's export orders.

Looking ahead, Lin said that export order growth momentum is expected to continue into the second half of this year, adding that with Apple Inc. expected to unveil the next-generation iPhones later in the year, Taiwan's suppliers will see their orders rising accordingly.

The world's largest contract chip maker, Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) and the world's largest contract electronics maker, Hon Hai Precision Industry Co. (鴻海), are two of the most important suppliers to Apple.

The Taiwanese suppliers to Apple account for about 40 percent of the total market capitalization of the local equity market.

Lin said that growth momentum of iPhone assemblers in Taiwan could become more visible starting from September.

(By Liao Yu-yang and Frances Huang)
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