TAIPEI: Taiwan’s exports rose more than expected in June, with the island benefiting from its position as a key link in the supply chain of the booming artificial intelligence (AI) industry though also coming off from a low base period.

Exports rose 23.5 per cent from a year earlier to US$39.9 billion, the finance ministry said on Tuesday.

Taiwan’s export recovery continued with its eighth consecutive monthly rise, and exceeded the 11.45 per cent forecast in a Reuters poll, while beating a 3.5 per cent gain in May.

The robust performance was thanks to “strong business opportunities in new technology applications” such as AI and high performance computing, the ministry said in a statement.

The second half of the year should see a continued uptrend in export momentum as exports enter their peak season, owing to the island’s advanced chip production capacity, it added.

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

The ministry predicted that Taiwan’s exports in July could rise between 3 per cent and 6 per cent from a year earlier.

Exports to the United States soared 74.2 per cent, compared with a 36.4 per cent surge in May.

Shipments to China – Taiwan’s largest trading partner – improved, up 7.3 per cent in June on-year versus the previous month’s 5.3 per cent drop.

Taiwan’s total shipments of electronic components rose 7.3 per cent in June from a year earlier to US$14.58 billion, with semiconductor exports gaining 7.6 per cent.

Taiwan’s imports jumped 33.9 per cent to US$35.22 billion in June, above economists’ forecasts for a 15 per cent gain.

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