Taipei: Taiwan's exports experienced a significant boost, climbing over 30 percent from the previous year in February, marking the 16th consecutive month of year-on-year growth, with the United States emerging as the largest buyer, according to the Ministry of Finance (MOF).
According to Focus Taiwan, data compiled by the MOF revealed that the nation's exports surged 31.5 percent from the previous year to reach US$41.31 billion in February. This figure surpassed the ministry's earlier projection of US$36.5 billion to US$37.7 billion, which anticipated a 16-20 percent year-on-year increase.
The United States led the major buyers, purchasing US$11.77 billion in Taiwanese goods in February, accounting for 28.5 percent of Taiwan's total exports. This placed the U.S. ahead of China and Hong Kong, which collectively acquired US$11.72 billion worth of Taiwanese merchandise, representing 28.4 percent of the total. Notably, this marks the first time in 24 years that the U.S. has replaced China and Hong Kong as Taiwan's largest buyer.
Beatrice Tsai, director-general of the MOF's Department of Statistics, attributed the robust performance of Taiwan's exports in February to the growing popularity of emerging technologies such as artificial intelligence applications and high-performance computing devices. Tsai noted that foreign buyers were also expediting their purchases to build up inventories amid concerns over the Trump administration's tariff policies.
The increased number of working days in February, compared to the same month last year when the Lunar New Year holiday occurred, contributed to all major industries reporting year-on-year growth. Among these industries, the information communications and video/audio industry reported the highest growth of 65.5 percent in February, with exports reaching US$14.07 billion. The electronics component industry saw exports climb to US$14.44 billion, a 24.6 percent increase from the previous year, the MOF reported.
Additionally, optoelectronics and precision equipment makers reported US$881 million in exports in February, reflecting a 14.7 percent increase from the previous year, according to the MOF.
In the old economy sector, exports from the base metal, machinery, mineral items, and plastics/rubber industries rose 16.5 percent, 14.0 percent, 22.4 percent, and 6.8 percent, respectively, compared to the previous year, reaching US$2.20 billion, US$1.70 billion, US$1.50 billion, and US$1.44 billion in February, as per the MOF's data.
Tsai commented on the U.S. becoming the largest buyer in February, noting that American purchasers were stocking up in response to potential tariffs on Taiwan's exports by Trump. Additionally, the escalating trade war between the U.S. and China prompted many Taiwanese exporters to diversify their markets, aiding the U.S. in ascending to the top of the client list.
Tsai also highlighted that strong demand for AI applications and a restructuring of the global supply chain contributed to the U.S.'s increased buying. However, she mentioned that the narrow margin between the U.S. and China/Hong Kong in terms of their portions of Taiwan's exports leaves it uncertain whether the U.S. will remain Taiwan's top export market.
In February, imports totaled US$34.76 billion, a 47.8 percent increase from a year earlier, which reduced Taiwan's trade surplus to US$6.55 billion, down 17.1 percent from the previous year.
During the first two months of the year, Taiwan's exports rose 16.8 percent year-on-year to US$80.02 billion, while imports increased by 9.3 percent to US$63.49 billion. The trade surplus for the two months rose 58.8 percent year-on-year to US$16.53 billion.
Taiwan's imports from South Korea in the two-month period reached US$7.94 billion, a 58.8 percent increase from the previous year, as Taiwanese importers boosted their purchases of South Korea-made memory chips, positioning Seoul as the second largest supplier, trailing only China and Hong Kong, which sold US$12.06 billion worth of goods to Taiwan, up 6.7 percent from a year earlier, Tsai said.
Looking ahead, Tsai forecasted Taiwan's exports to range between US$41.4 billion and US$42.6 billion in March, with a year-on-year growth range of negative 1 percent to positive 2 percent due to a relatively high comparison base over the same period last year. Nevertheless, Tsai projected Taiwan's outbound sales to increase by 10-11.2 percent year-on-year to between US$121.42 billion and US$122.62 billion in the first quarter, driven by emerging technology development.