Taiwan’s exports hit record-high US$34.3 billion in January on 5G, holiday demand

Exports above US$30 billion a month have been the ‘new normal’ for the past few months, according to Taiwan’s Finance Ministry

That has been driven by strong demand for 5G equipment and high-performance computing

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Taiwan is seeing booming overseas demand for semiconductors and other hi-tech products driving exports and company profits. Photo: Agence France-Presse

Published: 7:58pm, 8 Feb 2021Updated: 8:16pm, 8 Feb 2021

Taiwan exported a record-high amount in January, fuelled by rising demand for semiconductors and by companies rushing to get components ahead of the Lunar New Year holidays in February.

Shipments surged almost 37 per cent to US$34.3 billion, the most in data going back to 1981. Imports also hit a record over the same period, up almost 30 per cent, according to data released on Monday by the Ministry of Finance in Taipei.

Taiwan’s economy was one of the strongest performers globally in 2020, with quick domestic suppression of Covid-19 and booming overseas demand for its goods driving strong exports and company profits. That trend looks to be extending into 2021.

An employee of chip maker Taiwan Semiconductor Manufacturing Co carries a batch of 8-inch silicon wafers at one of its fabrication plants in the island. Photo: Handout

Although some of the rebound was because of the holidays, the underlying momentum remains strong, said Michelle Lam, an economist at Societe Generale in Hong Kong, who recently raised her forecast for Taiwan’s economic growth for this year to 3.8 per cent.

“The shipment of tech products continued to pick up sharply due to accelerated digitalisation and structural drivers such as 5G,” Lam said. “Traditional products have also benefit from recovering commodity prices.”

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