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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
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Taiwan’s exports rose to a record in August, aided by suppliers rushing to ship as many components as possible to Huawei Technologies before a US ban on sales to the company comes into effect next week.
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.
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The size of the increase was “unexpectedly strong”, according to the ministry’s chief statistician Beatrice Tsai, who also cited the upcoming launch of new smartphones as a contributing factor.
There were four main drivers of the export surge, according to the finance ministry’s statement: the impending US ban on technology sales to Huawei; rising demand for technology products to allow people to work and study at home amid ongoing Covid-19 lockdowns; a seasonal pickup in demand in the second half of the year; and stabilising global material prices.
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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.
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