Taiwan's October Exports Rise Less Than Expected

TAIPEI (Reuters) – Taiwan's exports rose less than anticipated in October, buoyed by the booming artificial intelligence (AI) sector but hindered by the sluggish economy of its largest trading partner, China.

Exports increased by 8.4% year-on-year to $41.3 billion, according to the finance ministry, falling short of the 9% growth forecast from a Reuters poll. However, this figure is an improvement over September’s 4.5% increase and maintains a positive trend as the 12th consecutive monthly rise.

Looking ahead, the ministry anticipates a strong fourth quarter, driven by interest rate cuts from larger economies, solid demand for AI applications, and the impending peak end-of-year shopping season in U.S. and European markets. They predict that November exports could rise between 5.0% and 9.0% year-on-year.

Major Taiwanese firms, including TSMC, the world's largest contract chipmaker, remain key suppliers to tech giants like Apple and Nvidia.

In October, exports to the United States surged by 20.5% to $8.65 billion, though this was a decrease from September’s 27.3% increase. In contrast, exports to China, Taiwan’s largest trading partner, dropped by 2.1%, worsening from a previous month’s gain of 1.7%.

Total exports of electronic components rose by 6.1% in October, amounting to $16.60 billion, with semiconductor exports also up by 6.1%.

Imports increased by 6.5% to $34.43 billion in October, which fell short of economists' predictions for a 9.0% gain.