Taiwan exports hit record in August on AI, U.S. reaches record again

Taiwan's exports rose more than expected in August to an all-time monthly high of nearly $44 billion, as growing demand for chips to supply the burgeoning Artificial Intelligence (AI) industry overcame headwinds caused by anaemic demand from China.

Exports rose 16.8% on the year to a record $43.64 billion, the finance ministry said on Monday, exceeding a rise of 7.35% forecast in a Reuters poll and July's gain of 3.1%, to mark the 10th consecutive monthly rise.

"August's export value hit a record as business for AI and high-performance computing continued to be strong, as well as international brands stocking up on new products," the ministry said in a statement.

The second half of the year should see a "gradual upward slope" in growth as exports enter their peak season, the ministry has said, pointing to the end-of-year holiday shopping season in Western markets such as the United States and Europe.

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

The ministry predicted exports in September could gain between 5% and 9% on the year.

In August, exports to the United States soared 78.5% to $11.89 billion, also a record high, compared with a gain of 70.3% in July.

Shipments to largest trading partner China were up 1.0% versus the previous month's slide of 13.5%.

Total shipments of electronic components edged up 0.1% in August from a year earlier to $15.15 billion, with semiconductor exports down 0.5%.

Imports rose 11.8% to $32.14 billion in August, missing economists' forecasts for a gain of 15.0%.