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The AI boom is driving a surge in Taiwan's exports, with Taiwanese companies shipping more than $42 billion worth of graphics processing units and related equipment in the past year, after barely any shipments in recent years.
Such exports were worth $3.5 billion last month, up nearly 422% from the same period a year ago, according to data released Wednesday by customs officials. The United States was the biggest customer for the chips made by companies such as Nvidia Corp., which are essential for graphics and training AI services. Companies in the Netherlands and Hong Kong were also big buyers.
Total exports rose 23.5% to nearly $40 billion in June, the Treasury Department said Tuesday. Total shipments of computers and related hardware rose 324% to $6.6 billion, driven by strong demand from the emerging technology sector.
Beatrice Tsai, the ministry's chief statistician, said after the announcement that Taiwan will “enter peak export season from July” and that most exports this month will be at the same level as or higher than June.
Taiwan is home to Taiwan Semiconductor Manufacturing Co. (TSMC), the world's most advanced semiconductor manufacturer and a major supplier to companies like NVIDIA and Apple Inc. Together, TSMC and its peers, supported by a vast ecosystem of component suppliers, produce the majority of the world's high-end semiconductors.
“Taiwan continues to benefit from an artificial intelligence boom and a recovering tech cycle, which are likely to support exports in the coming months,” said Gary Ng, senior economist at Natixis SA.
Exports of integrated circuits are growing again after losing momentum over the past few months, with total shipments to the United States increasing by more than 74 percent in June, while shipments to ASEAN also continued to grow strongly, offsetting the impact of slowing Chinese economic growth, Ng said.
The surge in GPU shipments is one of the factors that has helped drive trade with the U.S. to a record high. More than $9 billion in goods were shipped from Taiwan to the U.S. last month, the third-highest monthly total on record and just shy of March's record.
–With assistance from Cindy Wang and Chien-Hua Wan.
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