Taiwan July Exports Miss Forecasts, AI Demand Remains Solid

Taiwan's exports grew at a slower pace than expected in July, though demand for artificial intelligence and high-performance computing continued to provide strong support. The finance ministry reported on Friday that exports rose 32.9% from a year earlier to $75.30 billion, falling short of the 40.7% gain analysts had forecast and the 40.3% rise recorded in June.

Despite the miss, the ministry said the global economic outlook remains constrained by geopolitical risks and uncertainties surrounding U.S. trade policy. However, it expects Taiwanese exports to keep growing in the second half of the year, projecting a rise of 31% to 35% in August compared with the same month last year.

Shipments of electronic components jumped 50.5% to $27.733 billion, while information products rose 29.5%. Exports to the United States increased 25.2% to $23.34 billion, and those to China gained 33.4%.

Imports rose 37.4% to $58.13 billion, also below economists' expectations of a 51.8% increase.

Taiwanese companies, including TSMC — the world's largest maker of advanced chips used in AI applications — are key suppliers to major tech firms such as Nvidia and Apple, underpinning the continued strength in the sector.