Taiwan Q1 export orders up 2.5 percent

2015-04-22

Taiwan’s export orders rose 2.5 percent year on year in the first quarter of 2015 to a record high US$107.36 billion, bolstered by strong global demand for electronics, machinery and information communications technology products.

“Improving conditions in Europe and the U.S. are the primary reason behind this positive development,” said Lin Lee-jen, director-general of the Department of Statistics under the Ministry of Economic Affairs, April 20.

Among Taiwan’s major export items, orders for ICT products rose 13.6 percent year on year to US$29.72 billion, or 27.7 percent of the total. Electronics and machinery picked up 5.3 percent and 10 percent to US$27.25 billion and US$5.44 billion, respectively.

“Demand for mobile devices continued to create business for Taiwan’s contract memory and wafer manufacturers, packaging and testing service providers, and component and part suppliers,” she said.

Lee attributed the double-digit growth in machinery orders to expanding capital investment in Europe, the U.S., members of the Association of Southeast Asian Nations and mainland China.

But orders for basic metals, chemicals, plastic and rubber products, and precision instruments dropped between 5.9 percent and 11.8 percent.

Lee said the underperformance of the sectors stemmed from weak global oil prices, dampened demand for petrochemical products, excess worldwide steel supply and stiff competition from mainland Chinese panel manufacturers.

The U.S. remained the top source of export orders, jumping 17.2 percent to US$28.53 billion, or 26.6 percent of the total. It is followed by mainland China—including Hong Kong—at US$26.12 billion, down 2.5 percent, and Europe at 21.9 billion, up 11.8 percent.

Orders from Taiwan’s six major trading partners in ASEAN decreased 1.4 percent to US$12 billion, while those from Japan sank 25.1 percent to US$7.09 billion.

While orders for March increased 1.3 percent year on year to a second-best ever US$38.43 billion for the period, Lee expects export orders to inch down in April.

“There seems to be some signs of strain in demand for handheld devices, a development not boding well for Taiwan’s ICT or electronics exports,” she said, adding that a higher comparison from last year will also make an annual gain challenging.

Lee tips new wearable devices and more applications of the Internet of Thing to instill fresh momentum and keep driving demand for local exports.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=229554&CtNode=413)