TAIPEI (Reuters) – Taiwan’s export orders fell for the first time in 11 months in January as demand for technology products softened amid a seasonal slowdown, but the government remained optimistic about ongoing demand for artificial intelligence technologies.
Export orders dropped 3.0% year-on-year in January to $46.97 billion, Taiwan’s Ministry of Economic Affairs said on Thursday.
That was worse than a 1.8% contraction forecast in a Reuters poll and compared with December’s expansion of 20.8%, though the last week of January coincided with the week-long Lunar New Year holiday in Taiwan.
Orders for goods from Taiwan, home to the world’s largest contract chipmaker and other tech companies, are considered a bellwether of global technology demand.
Taiwan’s export performance this year could be substantially impacted if U.S. President Donald Trump follows through with his tariff plans.
Trump has floated a proposal for a 25% tariff on chips. Taiwan has responded to the tariff threat with diplomatic overtures and plans to discuss chip investment in the United States.
Still, the ministry was generally upbeat about this year and said it expects export orders in February to rise between 15.3% and 20.6% on year.
“Demand will remain solid for our supply chain of advanced technologies in semiconductors and servers, supporting export orders growth momentum,” it said in a statement. However, it added that uncertainties such as geopolitical risks would cloud the global economic growth outlook.
Taiwan’s orders in January for telecommunications products were down 13.3% year-on-year, while electronic product orders rose 1.5%.
Overall orders from China fell 18.3% versus a 13.6% gain in December. Orders from the United States were up 6.4%, slowing sharply from a 31% surge the month before.
Orders from Europe fell 12.4% in January, while orders from Japan were up 8.0%.
(Reporting by Faith Hung and Jeanny Kao; Editing by Christopher Cushing and Shri Navaratnam)
Comments