Taiwan November exports expand faster than expected, outlook upbeat

Taiwan November exports expand faster than expected, outlook upbeat

TAIPEI (Reuters) - Taiwan's exports rose more than expected in November benefiting from the booming artificial intelligence (AI) industry and a bounce back in demand from top trading partner China, with the outlook upbeat.

Exports rose 9.7% on the year to $41.09 billion, the finance ministry said on Monday, both beating a forecast for expansion of 8% in a Reuters poll and above October's gain of 8.4%, marking the 13th straight monthly rise.

The ministry said it saw a strong outlook with steady export growth continuing thanks to AI boosting business for semiconductor companies.

The fourth quarter is traditionally strong for Taiwan exports due to the peak end-of-year shopping season in U.S. and European markets.

The ministry predicted December exports could rise between 4.5% and 7.5% on the year.

Analyst Kevin Wang of Taishin Securities Investment said exporters' fears of increased tariffs from U.S. President-elect Donald Trump, who takes office Jan. 20, could push strong exports for December.

"Manufacturers are worried about the impending implementation of the tariff policy and will rush to get exports out," he said.

Taiwan firms such as TSMC, the world's largest contract chipmaker, are major suppliers to Apple, Nvidia and other tech giants.

In November, exports to the United States rose 10.6% year on year to $8.65 billion, though off October's rise of 20.5%.

Exports to Taiwan's largest trading partner, China, jumped 9.5%, a turnaround from the previous month's fall of 2.1%.

Total exports of electronic components jumped 14.6% in November on the year to $16.73 billion, with semiconductor exports up 15.5%.

Imports rose 19.8% to $33.16 billion in November, better than economists' forecasts for a gain of 18.15%.

(Reporting by Ben Blanchard and Jeanny Kao; Additional reporting by Roger Tung; Editing by Ros Russell)

Did you find this insightful?