Taiwan’s exports to mainland China, Hong Kong hit record high as semiconductor demand fuels cross-strait trade

Taiwanese official says US sanctions have led to a significant increase in mainland demand for Taiwan’s chips, and strong demand will continue until the mainland’s chip technology is upgraded

Additionally, foreign-owned factories based on the mainland still need to purchase chips from Taiwan

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Demand for Taiwan-made computer chips helped boost exports to mainland China to an all-time high last year. Photo: AFP

Published: 8:30pm, 10 Jan 2022

The value of Taiwan’s exports to mainland China and Hong Kong hit an all-time high of US$188.9 billion in 2021, thanks to the resilient demand for the island’s computer chips, according to the latest data released by the island.

Taiwan’s finance ministry said the total was a 24.8 per cent increase from 2020.

It included US$125.9 billion worth of exports to the mainland, marking a rise of 22.9 per cent from the previous year and almost double the 11.9 per cent growth rate seen in 2020.

For December, figures show that Taiwan’s exports of electronic components and audiovisual products to the mainland increased by 23.3 per cent and 19.9 per cent, respectively.

“The mainland announced that they want to make their own chips, but they can’t; their procurement of related goods from us has not decreased,” an official with Taiwan’s finance ministry told the Post, speaking on condition of anonymity and referring to mainland China’s self-sufficiency efforts in chipmaking.

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