Taiwan's export orders rose above expectations.

Taiwan's Export Orders Show Record Growth

Taiwan's export orders saw a larger-than-expected increase in September, continuing their rise for the eighth month. The growth in the artificial intelligence (AI) sector offset concerns over U.S. tariffs.

According to data released by Taiwan's Ministry of Economic Affairs, export orders in September reached 70.22 billion dollars, marking a 30.5% increase compared to the same period last year. This figure significantly exceeded analysts' expectations of a 17.8% increase.

Home to the world’s largest contract chip producer TSMC and other tech firms, Taiwan is a crucial indicator of global technology demand. However, the 20% general tariff imposed by U.S. President Donald Trump is seen as a temporary barrier to Taiwan’s exports.

The Taiwanese government stated that it continues to negotiate for more favorable tariff rates with the U.S. According to a statement from the Ministry of Economic Affairs, global trade policies and geopolitical risks negatively impact global trade momentum.

Still, the momentum in orders is expected to continue with the expansion of artificial intelligence and high-performance computing applications. The fourth quarter is known to be a high season in western markets ahead of year-end holidays.

The ministry also emphasized that it is likely that annual orders will reach record levels. For October, export orders are expected to increase between 23.7% and 27.3% compared to the previous year.

In September, Taiwan's telecommunications product orders increased by 33.1% year-on-year, while electronic product orders saw a remarkable increase of 45.9%. Overall orders from China rose by 11.6%, while orders from the U.S. surged by 40.2%. Orders from Europe increased by 16.9%, and those from Japan grew by 22.8%.