Taiwan Exports ‘On Fire’ as Global Demand for AI Servers Surges

Taiwan Exports ‘On Fire’ as Global Demand for AI Servers Surges

Exports of computers and related hardware, which includes servers, hard drives and keyboards, jumped 464.7% to $8.7 billion in March compared to the same month last year, the Finance Ministry said in a statement.

That surge propelled Taiwan’s overall overseas shipments to $41.8 billion, a rise of 18.9% year on year, the fastest pace of growth since March 2022. Economists had forecast a 7.5% increase.

The pace of growth may not always show an out-sized surprise, like March’s, but we believe Taiwan’s export demand will continue to get a meaningful boost from both AI-related investments and ongoing strength in US economy,” Bansi Madhavani, an economist at ANZ Banking Group, said in a message.

Taiwan’s exports were “on fire” in March, according to Societe Generale economist Michelle Lam, driven by the “usual suspect” of AI-related demand for information and communications equipment.

But not all tech-related products benefited from returning global tech demand. Semiconductors, which make up the largest single product category of exports, saw exports shrink 6.1% versus the same month last year.

Meanwhile, imports unexpectedly grew, rising 7.1% as opposed to economist forecasts for a 1.6% contraction. Part of the surprise increase was due to purchases of aircraft, according to the ministry’s statement.

Source Bloomberg

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