Tuesday, April 16, 2024
Latest News
I.M.F. Sees Steady Growth but Warns of Rising Protectionism Monorail services disrupted for hours due to guiding wheel tire burst | Mumbai News This start up is making comfortable 'homes' for Moon and Mars colonization Paris Games: France’s Macron calls on China to help with 3-week ‘Olympic truce’ as Russia, Israel divide world opinion Watch: Avesh Khan grabs a one-handed blinder on his follow-through, takes Samson's glove and shows it to dressing room | Cricket News Evolution Equity Partners raises $1.1B for new cybersecurity and AI fund Second GOP lawmaker backs ousting House speaker, putting Johnson's job in peril Magnitude 2.8 earthquake reported in View Park-Windsor Hills 700 inmates get job in hotel industry, 1200 more to get employed soon: Tihar prisons chief | India News Is Aadhaar mandatory for investment in small savings schemes such as Senior Citizen Savings Scheme, PPF, NSC, Sukanya Samriddhi Yojana? | Business WhatsApp introduces 'Recent Online Contacts' feature: What is this and how to use it NASA's plan to bring Mars samples to Earth undergoes revision due to budget cuts Election Commission Of India: 48.76cr Drugs, 19.27cr Liquor Seized From Mar 1 To Apr 13 | Guwahati News China’s GDP growth beat expectations – so why are analysts and business groups still downbeat? US, Chinese defence chiefs talk for first time in more than two years Samsung has good news for Galaxy S22 users: OneUI 6.1 update to bring latest Galaxy AI features and more Copenhagen’s Old Stock Exchange Building Partly Collapses in Fire Former UK leader Liz Truss backs Trump and blames others for her ouster after 49 days Biden under fire for shutting down US oil production, urged to impose sanctions on Venezuela Possession Of Ganja: Two Youths Held For Possession Of Ganja, Luxury Car Seized | Coimbatore News CBDT signs record number of 125 Advance Pricing Agreements in fiscal 2023-24 Gay cruising hotspot or sacred Hong Kong wishing tree? It is both in this art exhibition by Trevor Yeung SCMP Best Bets: Beast can scare off rivals at Happy Valley | HK Racing Justice Thomas returns to Supreme Court after 1-day absence 404 | Fox News 'I can feel Begunia residents' support for Congress, my family' | Bhubaneswar News Rumoured couple Sonakshi Sinha and Zaheer Iqbal's relationship decoded by body language expert China’s top diplomat Wang Yi to push belt and road during visits to Indonesia, Cambodia and Papua New Guinea Luck finally eludes Shreyas Iyer! KKR skipper loses toss against RR despite kissing coin before flipping | Cricket News Electric vehicles: China’s Chery Automobile enters UK’s car rental business as its Omoda EVs are leased out by Octopus
HomeBusinessTaiwan’s hi-tech export orders resume rise as world gears up for AI,...

Taiwan’s hi-tech export orders resume rise as world gears up for AI, unvexed by interest rate pressure

Global tech production hub Taiwan has reported a monthly gain in its all-important export orders due to growing demand for AI-related devices, and the rise came despite persistent pressure from high interest rates.

The value of orders firmed by 1.9 per cent to US$48.42 billion last month, year on year, the Ministry of Economic Affairs said on Tuesday.

The island, whose economy relies on the production of tech hardware and is regarded as a bellwether for the global health of consumer electronics, had reported 14 straight months of year-on-year declines in export orders before the figure edged up by 1 per cent in November. Orders then fell again in December.

Further evidence of a rise in worldwide demand for components that speed up artificial intelligence computations probably helped Taiwan’s cause in January, according to analysts.

AI has become the next big thing in Taiwan’s exports and industrial development

Hu Jin-li

“Orders for AI products keep rising,” said Hu Jin-li, a professor with the Institute of Business and Management at National Yang Ming Chiao Tung University in Taipei.

“AI has become the next big thing in Taiwan’s exports and industrial development,” he added.

The global AI-optimised hardware market could see a compound annual growth rate of 25.9 per cent from 2023 to 2028, Global Market Estimates said in November.

Overseas commitments to buy Taiwan’s consumer electronics, the top export-order category at US$17.45 billion, went up 16.1 per cent last month, compared with a year prior.

Meanwhile, orders for information and communication products lost 19.3 per cent, year on year, and finished the past month at US$13.91 billion.

US orders to Taiwan also edged up by 2.7 per cent last month, according to the ministry data, and the United States led other world markets in January with US$15.39 billion in commitments.

Combined orders from mainland China and Hong Kong expanded by 28 per cent last month, year on year, to US$10.64 billion. Commitments from the 10-country Association of Southeast Asian Nations soared by 117.9 per cent to US$9.08 billion, while European orders to Taiwan shed 50 per cent.

Consumer electronics and their parts head up a tech sector that accounts for about 30 per cent of Taiwan’s economy. The island supplies an estimated 60 per cent of the world’s semiconductor chips, including the most advanced.

Semiconductors, electronics for cars, and electric vehicle components probably led orders last month, along with AI-related gear, Hu said.

Taiwan expects US$7.3 billion in AI investments in 2024, exports expand again

Last month, market research firm Canalys had forecast that the world’s wearable-band market would expand by 10 per cent this year because of an “expected resurgence” in smartwatch interest.

“Taiwan’s exports have done better in recent months thanks to stronger electronics shipments, which have benefited from the boom in artificial intelligence,” said Stefan Angrick, a senior economist with Moody’s Analytics.

But he observed that a longer-term rally in orders could “take time” because of lingering high interest rates around the world. Monetary authorities in many countries raised rates last year to combat inflation.

When rates are high, consumers are less willing to take out loans for major purchases or investments, in turn slowing overall consumption.

“We look for central banks across the world to begin easing monetary policy settings mid-year, which should help demand find better footing,” Angrick said.

Source link



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Latest News