Financial and Technology News

Machinery tools, chips lift export orders in April

 2018/06/19
EXPANSION:Growth should be sustainable as the ICT and electronics sectors enter their peak season in the second half, the economics ministry said.
 
The nation’s export orders grew at an annual pace of 9.82 percent last month, backed by vigorous demand for high-performance computing chips for artificial intelligence and machinery tools for smart factories, the Ministry of Economic Affairs said yesterday.
 
The growth offset weak demand for Apple Inc’s iPhones and laptop computers.
 
Export orders expanded to US$39.11 billion last month, compared with US$35.61 billion a year earlier, surpassing the ministry’s forecast of US$37.5 billion to US$38.5 billion, the Department of Statistics said.
 
Last month’s growth momentum should be sustainable, it said.
 
Export orders are forecast to rise to between US$39 billion and US$40 billion, as information, communications and technology (ICT) products — especially smartphones — and electronics goods enter their peak season in the second half, it said.
 
“We expect to see a steady growth in May,” Department of Statistics Director-General Lin Lee-jen said by telephone. “Easing China-US trade tension has bolstered our confidence that the nation’s export orders are moving in a positive direction this year.”
 
Lin’s confidence is also built on the fact that Taiwan is the biggest supplier of electronics components and goods to China in terms of market share, she said.
 
Taiwan should indirectly benefit from the world’s top two economies’ improving trade, she added.
 
Cumulative export orders in the first four months of this year expanded 7.2 percent annually to US$157.01 billion, ministry statistics showed.
 
“The first half is usually a slack season for ICT products and electronic goods. Orders softened [this time] as customers are going through a product transition period,” Lin said.
 
Orders for ICT goods, the biggest contributor to Taiwan’s export orders, edged 0.3 percent lower year-on-year to US$10.19 billion last month.
 
“However, the demand for electronics goods and traditional sectors, such as machinery tools and petrochemicals, greatly exceeded our expectations,” Lin said.
 
Orders for electronic goods grew 12.1 percent year-on-year to US$10.18 billion last month, as robust end demand for high-performance computing devices and servers drove growth in the foundry, memory chips and passive components sectors, the ministry said.
 
Orders for machinery tools rose 18.6 percent to US$2.26 billion last month, marking 21 consecutive months of growth, due to accelerating demand worldwide, notably China, the ministry said.
 
Basic metals saw orders climb 16.5 percent year-on-year due to growing demand for steel amid economic expansion worldwide, while orders for petrochemicals soared 24.9 percent annually on surging crude oil prices.
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