Taiwan brought good news in its export orders. Strong demand for high-end chips remained strong and boosted the island’s export orders. Still, Taiwan is being cautious over the possibility of COVID-19 variants disrupting global supply chains.
The spotlight of global technology demand, Taiwan, reported a 21.4% jump in export orders to $55.3 billion. The digit comes from a comparison from a year earlier in July. The result was revealed by Taiwan’s Ministry of Economic Affairs on Friday.
That noted the 17th month of expansion for Taiwan. Accordingly, the pace was faster than the median forecast in the Reuters poll noting a rise of 20.85%.
As a note, Taiwan reported a 31.1% surge in export orders in June compared to a year earlier to $53.73 billion.
Taiwan ministry further noted that demand for 5G telecom equipment and semiconductors likely affected the performance.
According to the ministry, demand for electronics that support the “home economy” such as laptops remained strong. This is likely due to restrictions caused by COVID-19 are still haunting millions around the world.
Several Taiwan companies that played a big role in the global chip supply namely are Foxconn and Taiwan Semiconductor Manufacturing Co Ltd (TSMC). Both companies are major suppliers to Apple Inc and other global tech firms.
Taiwan: COVID-19 variants terror looms global supply chain
Despite the country’s performance, the ministry warned to keep on being wary of global supply chains. COVID-19 variants spread around the world are tightening the anti-virus measures in some countries. This further affected supply chains.
However, countries that implement speedy vaccinations are showing an upside. The shortage of chips from months ago is also still giving space for strong demand for 5G and the auto sector.
The Taiwan ministry will be expecting another rise in August’s export orders to around 20.9% to 24.2% from a year earlier.
As per July, Taiwan recorded a 16.5% jump from the United States’ orders in July in comparison to a year earlier. The digit, unfortunately, is comparably slower from the 24% logged in June. Meanwhile, China’s orders picked up by 20.1% from the 36.7% gain in the previous month.
Additionally, orders from Europe grew 14.3%, while those from Japan were up 27.6%.
Read also: Soaring Chip Demands, Taiwan Economy Surpasses China
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