Taiwan exports surge to record amid Huawei scramble for chips
- Overseas shipments from Taiwan increased 8.3 per cent in August to a record high of US$31.2 billion, aided by suppliers rushing to deliver hi-tech components to Huawei
- The grace period for the US export ban on Huawei ends on September 14
Overseas shipments from Taiwan increased 8.3 per cent last month to a record high of US$31.2 billion, according to a statement from Taiwan’s Ministry of Finance on Monday.
That was more than even the most bullish estimate in a survey of 13 economists, which had a median forecast of a 0.8 per cent gain. Imports unexpectedly rose 8.5 per cent and the trade surplus widened to US$6.47 billion.
The grace period for Huawei’s US export ban ends on September 14. Huawei helped add between US$1.5 billion and US$2 billion to the finance ministry’s original estimates for August exports, Tsai said.
US sanctions drive up Huawei handset prices as company grapples with impending chip shortage
The outlook for Taiwan’s exports will remain solid as more high-end production is brought back to the island, according to Australia & New Zealand (ANZ) Banking Group’s Greater China chief economist Raymond Yeung, the most accurate economist in Bloomberg’s survey.
Exports to China including Hong Kong, Taiwan’s biggest trading partner, rose 22.9 per cent even as Chinese imports unexpectedly fell last month. That was the biggest gain since February. Shipments to the US rose 13.8 per cent.
Taiwan’s export recovery is coinciding with a rebound in manufacturing sentiment. The purchasing managers’ index for August rose to 52.2, the strongest level in two years. September exports are likely to rise between 1.5 per cent and 4.5 per cent year on year, according to the finance ministry.
“Headline growth may start to come down as the Christmas holiday approaches,” ANZ’s Yeung said via email. “The trade cycle is often tied to Apple’s new model. Typically, exports outperform in the third quarter.”
