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Taiwan Sept export orders beat forecast, warns on China curbs

Taiwan Sept export orders beat forecast, warns on China curbs

A general view of a container terminal and the port during sunset in Keelung, Taiwan, June 10, 2020. REUTERS/Ann Wang

TAIPEI : Taiwan's export orders set a record in September, growing faster than expected on demand for new smartphones and chips and ahead of the year-end holiday shopping season, and the government said the outlook was good, though uncertainty over China's economy cast a shadow.

Taiwan's export orders, a bellwether of global technology demand, rose 25.7per cent from a year earlier to US$62.9 billion in September, a historic high, data from the Ministry of Economic Affairs showed on Wednesday.

That was the 19th month of expansion, and the pace was much faster than the median forecast of a rise of 17per cent in a Reuters poll.

The ministry said new smartphone launches and demand for new technologies helped sustain export orders, as well as stockpiling for Christmas and New Year holidays.

Taiwanese companies such as Foxconn and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) are major suppliers to Apple Inc, Qualcomm Inc and other global tech firms.

Apple unveiled the iPhone 13 and a new iPad mini last month, expanding 5G connectivity and showing off faster chips and sharper cameras without raising the phone's price.

Looking ahead, the ministry warned of uncertainty from China's energy curbs, which have shuttered factories in parts of the country, and global risk from the COVID-19 pandemic.

However, the year-end holiday shopping season and demand for 5G and other new technologies will help maintain steady growth for export orders, the ministry added.

The ministry's statistics director Huang Yu-ling said they expected full year export orders to rise more than 20per cent compared with 2020.

In August, export orders jumped 17.6per cent from a year earlier to US$53.5 billion.

The ministry said it expects export orders in October to rise between 22.1per cent and 25per cent from a year earlier.

Orders from the United States rose 29.3per cent in September from a year earlier, a faster rate of expansion compared with the 19.2per cent logged in August, while orders from China were up 11.5per cent, versus a gain of 15.9per cent the previous month.

Orders from Europe leapt 53.1per cent, while those from Japan were up 2.6per cent.

(Reporting by Roger Tung and Ben Blanchard; Editing by Simon Cameron-Moore)

Source: Reuters

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