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Taiwan's Trade Surplus Grows in May
Taiwan's trade surplus grew 41.8% year on year in May.The trade surplus expanded to $17.9 billion, higher than $14.4 billion in April, according to Tuesday's data from the Ministry of Finance.The figures exceeded Investing.com's forecast of $15.2 billion and ING's prediction of $15.5 billion.Exports rose 51.7% year over year to $78.5 billion, while imports increased 54.9% to $60.6 billion. The consensus forecast was 37.9% and 37.4% rise, respectively, according to Investing.com. ING predicted exports to have climbed 33.5% and imports to have risen 37.4%.When it comes to outbound shipments, information and communication products posted the biggest growth, jumping 75.2% in the prior year. This indicates the continuing rise in the popularity of technology supporting artificial intelligence, especially semiconductors.However, the growing demand for chips could bring tighter supply among major chipmakers, such as Taiwan Semiconductor Manufacturing (TPE:2330). In a news conference, C.C. Wei, TSMC's chairman and chief executive officer, said the company is facing a shortage of manufacturing equipment for advanced chips due to component shortages from suppliers, according to a June 5 report from the Taipei Times.Meanwhile, exports of electronic parts climbed 56%, and exports of electrical machinery products rose 33.4%.ASEAN is Taiwan's biggest export partner, jumping 90.8% year on year. The U.S. remains a major export partner despite the tariffs, as American exports rose 47.8% from the previous year.The imports of information and communication products surged 118% year on year, while mineral products grew 70.2% from a year earlier, with petroleum jumping 76.4%.ASEAN is also the largest import partner, surging 123.6% in import value, and South Korea comes next with its import value jumping 73.3% from a year earlier. Imports from China were in third place, rising 48.4% from the prior year.Meanwhile, the U.S. is not among the top three importers in Taiwan, rising only 13.6% year on year. This is despite the U.S. planning to remove some tariffs on Taiwanese imports, such as aluminum, steel, copper and aircraft parts, as announced by the Federal Register at the end of May.
Taiwan WeightedTPE:2330
