The prime season for the stocking of new products is rapidly approaching, and the outlook for Taiwan's export orders is optimistic, market sources believe.
The foundry and server sectors are thriving as a result of the increased demand for high-performance computing and artificial intelligence (AI). Furthermore, the momentum of export orders will be bolstered by the fact that consumer electronics will enter the prime season for new product stocking in the latter half of the year, sources indicated.
Apple is expected to introduce the iPhone 16 series at its fall conference in September 2024. Additionally, Samsung Electronics and numerous smartphone manufacturers have introduced new models that incorporate AI capabilities, sources said. With the significant improvement of AI mobile phones in areas such as picture retouching, voice-to-text, and translation, there is a possibility of a surge in phone replacements in the global market.
Export orders in June, 1H24
According to figures from Taiwan's Ministry of Economic Affairs (MOEA), total export orders increased by 3.1% from a year ago to US$45.6 billion in June 2024.
Taiwan's overall export orders for the first half of 2024 totaled US$274.86 billion, up 2.3% from a year earlier, according to MOEA statistics. In addition to the remarkable performance of electronic and information communication devices, orders for backlight modules and optical lenses increased dramatically during the first half of this year.
Orders for upstream electrical materials like copper foil also improved. Meanwhile, demand for automation equipment began to recover. Additionally, customers of plastic, rubber, and chemical products have begun replenishing their inventories and raising selling prices, boosting Taiwan's export orders in the first half of 2024, according to MOEA.
The largest product category in June export orders was information and communication products, totaling US$12.74 billion, a 9.4% decrease from the previous month but a 3.6% increase on an annual basis, according to MOEA. The overall amount collected in the first half of this year was US$77.49 billion, down 1.5% from the same period in 2023.
According to MOEA, the US was Taiwan's top source of export orders in June, accounting for US$14.79 billion, followed by China and Hong Kong with US$10.25 billion. The US continued to be the primary source of Taiwan's export orders during the first half of 2024, with a total of US$86.9 billion.
Furthermore, Taiwan's June export orders from ASEAN totaled US$6.82 billion, surpassing Europe's US$6.54 billion and ranking Taiwan's third largest source of orders, according to MOEA.
