 on March 20. This decline, primarily attributed to seasonal variations due to the Lunar New Year, was mitigated by a stronger than anticipated demand for artificial intelligence (AI) and high-performance computing (HPC) technologies.Understanding the DeclineThe first two months of 2024 saw Taiwan's export orders fall to US$86.15 billion, a significant slowdown from the 18.8 percent decline observed during the same period in 2023. This reduction was less severe than the MOEA's initial forecast of around a 10 percent drop. February alone witnessed a 10.4 percent decrease in export orders to US$37.73 billion, owing to the shorter work month caused by the Lunar New Year holidays. Despite these challenges, the demand for HPC solutions and AI applications spurred growth in the electronics and information and communications technology (ICT) sectors, according to Huang Yu-ling, MOEA's Department of Statistics Director.Sectoral Impacts and PredictionsWhile the ICT and machinery sectors saw decreases in their export orders by 16 percent and 3.3 percent respectively, other sectors including electronic products and optoelectronics equipment witnessed growth. Notably, the electronic products sector grew by 6.3 percent year-on-year to US$30.66 billion. The optoelectronics equipment industry also saw a 15.2 percent increase in export orders, driven by higher flat panel prices and increased demand for camera lenses and backlight modules. However, the mobile phone market remains weak, and the ongoing U.S.-China technology war and geopolitical risks continue to create uncertainties.Looking ForwardFor March 2024, export orders are expected to rise between 0.9 percent and 5.2 percent year-on-year, driven by inventory replenishment and strong demand for emerging technologies. The first quarter of 2024 is estimated to see export orders between US$133.2 billion and US$135.2 billion, marking a slight decrease of 0.8 percent to 2.3 percent compared to the previous year. Despite these challenges, there's optimism for a positive growth turnaround in the second quarter, buoyed by the potential of emerging technologies.The initial months of 2024 illustrate the resilience of Taiwan's export sector amidst seasonal and geopolitical challenges. The sustained demand for AI and HPC applications not only mitigates the impact of these downturns but also highlights the crucial role of emerging technologies in shaping Taiwan's export landscape. As the world navigates through uncertainties, Taiwan's adaptability and strategic focus on high-tech industries may well secure its position as a key player in the global market. For More Interesting News Follow Us on Instagram){kind=link}
Taiwanese firms skilled a 3.9 p.c lower in export orders throughout January and February of 2024, as reported by the Ministry of Financial Affairs (MOEA) on March 20.
This decline, primarily attributed to differences due to the season because of the Lunar New Yr, was mitigated by a stronger than anticipated demand for synthetic intelligence (AI) and high-performance computing (HPC) applied sciences.
Understanding the Decline
The primary two months of 2024 noticed Taiwan’s export orders fall to US$86.15 billion, a major slowdown from the 18.8 p.c decline noticed throughout the identical interval in 2023. This discount was much less extreme than the MOEA’s preliminary forecast of round a ten p.c drop.
February alone witnessed a ten.4 p.c lower in export orders to US$37.73 billion, owing to the shorter work month attributable to the Lunar New Yr holidays. Regardless of these challenges, the demand for HPC options and AI purposes spurred development within the electronics and knowledge and communications know-how (ICT) sectors, in line with Huang Yu-ling, MOEA’s Division of Statistics Director.
Sectoral Impacts and Predictions
Whereas the ICT and equipment sectors noticed decreases of their export orders by 16 p.c and three.3 p.c respectively, different sectors together with digital merchandise and optoelectronics tools witnessed development. Notably, the digital merchandise sector grew by 6.3 p.c year-on-year to US$30.66 billion.
The optoelectronics tools business additionally noticed a 15.2 p.c enhance in export orders, pushed by increased flat panel costs and elevated demand for digital camera lenses and backlight modules. Nevertheless, the cell phone market stays weak, and the continued U.S.-China know-how conflict and geopolitical dangers proceed to create uncertainties.
Trying Ahead
For March 2024, export orders are anticipated to rise between 0.9 p.c and 5.2 p.c year-on-year, pushed by stock replenishment and robust demand for rising applied sciences. The primary quarter of 2024 is estimated to see export orders between US$133.2 billion and US$135.2 billion, marking a slight lower of 0.8 p.c to 2.3 p.c in comparison with the earlier yr.
Regardless of these challenges, there’s optimism for a constructive development turnaround within the second quarter, buoyed by the potential of rising applied sciences.
The preliminary months of 2024 illustrate the resilience of Taiwan’s export sector amidst seasonal and geopolitical challenges. The sustained demand for AI and HPC purposes not solely mitigates the affect of those downturns but additionally highlights the essential position of rising applied sciences in shaping Taiwan’s export panorama. Because the world navigates via uncertainties, Taiwan’s adaptability and strategic give attention to high-tech industries could properly safe its place as a key participant within the world market.
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