Oct 22, 2014
Taiwan’s export orders rose to a new high in September, spurred by strong demand for new iPhones and continued recovery in key export markets.
Overseas buyers placed $43.31 billion of orders with Taiwanese manufacturers last month, up 12.7% from a year earlier, the Ministry of Economic Affairs said Monday. The growth rate was much higher than August’s 5.2% and the 3.33% rise forecast by economists.
The island’s electronics-focused exports have been outperforming most Asian countries this year, largely because of its central role in Apple Inc. ’s supply chain. Taiwanese-owned factories onshore and in China are key assemblers and suppliers of components to new iPhones, which have seen strong demand from consumers since the device’s September launch. Chip maker Taiwan Semiconductor Manufacturing Co. , camera-lens maker Largan Precision Co. and assembler Foxconn Technology Group each reported record-high revenues last month.
Export orders for electronic products—mostly microprocessors for smartphones—rose 19.4% to a record of $11.15 billion in September, picking up from a 12.6% rise in August. It marks the eighth consecutive month of double-digit growth rates.
Orders for portable devices such as notebook PCs and smartphones also jumped 16.3% to $12.85 billion. The ministry said the rollout of faster fourth-generation mobile network has spurred a wave of smartphone upgrades.
Recovering U.S. demand and the approaching year-end holiday sales offered another boost to Taiwan’s export orders. In September, 26% of orders were placed by U.S. buyers, up 15.5% from a year earlier to $11.37 billion, also a record.
Last month, orders from Hong Kong and China rose 8.6% to $10.40 billion. China, which imports goods for domestic consumption and re-exports to developed economies, accounted for around 24% of Taiwan orders last month.
“The strength of orders from developed economies and China suggest that this year’s holiday demand is going to be stronger, and more broad-based, than many of us had expected,” said Aidan Wang, an economist from Yuanta Investment.
However, Chinese demand remains a swing factor as the country is trudging an uneven growth path, economists say.
“China’s economic conditions haven't stabilized,” Standard Charted economist Tony Phoo said.
China is also increasingly reliant on locally produced components and placing fewer orders from Taiwanese manufacturers, which could be a longer-term negative to Taiwan’s trade, Mr. Phoo added.
Source: The Wall Street Journal