Taiwan’s exports have experienced a more significant decline than anticipated in March due to weak global demand for electronics. According to data from the Ministry of Finance, overseas shipments fell by 19.1% last month compared to the previous year . This decline follows a trend of decreasing exports for the trade-dependent economy, which has been grappling with falling demand for electronics components.
In November, Taiwan’s total exports of electronics components fell 4.9% to $15.15 billion, marking the first drop in three-and-a-half years. Semiconductor exports, a crucial component of Taiwan’s economy, decreased by 3.4% from the previous year . Major suppliers such as Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the world’s largest contract chipmaker, have been affected by the decline in demand . These companies provide essential components to global tech giants like Apple Inc. and other electronics manufacturers.
The recent slowdown in Taiwan’s exports comes after two years of robust growth. In 2022, Taiwan’s full-year exports reached a record of NT$14.2 trillion ($462 billion), representing a 13.8% increase. However, the weakening global demand for electronics has caused a more bearish outlook for the coming months .
The decline in exports can be attributed to a variety of factors, including the worsening state of the global economy and the impact of China’s COVID-19 restrictions . Inflation and interest rate hikes have also contributed to weaker consumer demand .
As Taiwan’s economy relies heavily on trade, particularly in the electronics sector, this decline in exports raises concerns about the country’s economic growth in the coming months. The government and industry leaders will need to find ways to navigate these challenges and adapt to the changing global market for electronics.