Tuesday, July 16, 2024

Surge in Taiwanese Tech Exports Driven by AI Boom in the US, Up 422%

Taiwanese GPU Exports Surge, Driving Record Trade with US

Taiwanese Exports of AI-related Equipment Surge to $42 Billion, Driven by Demand for Graphics Processing Units

In a remarkable leap, Taiwanese exports of graphic processing units (GPUs) and related equipment have skyrocketed to over $42 billion over the past year, a significant increase from almost zero in recent years. The surge in exports, valued at $3.5 billion just last month, reflects the booming demand for AI technology globally.

According to data released by the customs administration, the United States emerged as the largest customer for the GPU chips, primarily manufactured by industry giants such as Nvidia Corp. Other significant buyers included companies from the Netherlands and Hong Kong, pointing to the widespread reach of Taiwanese tech exports.

The Finance Ministry announced a 23.5% increase in total exports in June, totaling nearly $40 billion, with exports of computers and related hardware witnessing a staggering 324% growth. Beatrice Tsai, the ministry’s chief statistician, highlighted the upcoming peak season for exports, predicting steady growth or even better performance in the following months.

Taiwan’s position as a leading hub for high-end semiconductors, driven by companies like Taiwan Semiconductor Manufacturing Co., has further bolstered its export prowess. The country’s robust technological ecosystem, including key component suppliers, plays a crucial role in meeting the soaring demand for AI-driven products.

Economist Gary Ng from Natixis SA underscored Taiwan’s continued success in capitalizing on the AI boom and tech industry rebound, projecting a sustained export growth trajectory. The resumption of growth in integrated circuit exports, particularly to the US and ASEAN markets, signifies Taiwan’s resilience amid economic challenges in China.

The spike in GPU shipments has contributed significantly to Taiwan’s trade surplus with the US, with over $9 billion worth of goods shipped last month. This surge in exports highlights Taiwan’s pivotal role in the global tech supply chain, underpinned by cutting-edge innovation and adaptability to market demands.

The future looks promising for Taiwanese exports, as the nation gears up to meet increasing demand for AI technology and related equipment. The robust performance in the tech sector bodes well for Taiwan’s economic outlook and reinforces its position as a key player in the rapidly evolving AI landscape.

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