September exports of information products increased by 103% year-on-year.

Taiwan’s exports reached a new high in September as global demand for artificial intelligence (AI) chips and technology products continued to heat up. Total exports rose to US$87.22 billion, setting a monthly record for the second consecutive month and increasing 60.9% from a year earlier, exceeding market expectations. Shipments to the US were particularly strong, more than doubling year on year and highlighting Taiwan’s key role in global AI and electronics supply chains.

According to customs import and export statistics released by the Ministry of Finance, September exports surpassed the previous record of US$82.4 billion set in August. It was also the 35th consecutive month in which exports grew from a year earlier, showing that investment in the global technology sector and AI-related demand remain important supports for Taiwan’s exports.

September exports rose 60.9% year on year, well above economists’ forecast of 45.65% and August’s 41% increase. Taiwan’s exports maintained strong momentum despite continued global challenges, including inflation, rising energy costs and geopolitical risks.

AI and electronics drive exports

Electronic components were a major engine of export growth. Exports of electronic components rose 45.3% year on year to US$31.131 billion in September, while information product exports surged 103%, reflecting continued global demand for AI computing, high-performance computing (HPC) and cloud-service equipment.

As major technology companies continue to expand their AI data centers, demand has also increased for advanced semiconductors, servers and related electronic components. Taiwan has a comprehensive supply chain covering semiconductor manufacturing, electronic components and information hardware, making it a major beneficiary of the latest wave of global technology investment.

Taiwanese companies such as TSMC are key suppliers to major technology companies worldwide, providing important manufacturing support for AI chips and other high-end computing applications. The continued expansion of the AI industry has further boosted export demand for Taiwan-made products. Exports to the US rose 106.2%

The US was one of the most notable markets behind Taiwan’s export growth in September. Taiwan’s exports to the US reached US$27.461 billion, up 106.2% year on year, while exports to China also increased 30.2%.

The sharp increase in exports to the US was closely linked to demand from the American technology sector for AI chips, information products and related equipment. As US companies continue to invest in AI infrastructure, Taiwan’s supply chain has become even more important in high-end chips, electronic components and information hardware.

However, the rapid increase in exports to the US also highlights the need to monitor US trade policy, tariffs and changes in technology supply chains. Any policy changes could affect the export costs and market strategies of Taiwanese companies.

Imports also rise as trade surplus widens

Imports also increased substantially alongside the strong export performance. September imports rose 51.7% year on year to US$63.59 billion, exceeding the market forecast of 43.2% growth.

Based on total exports and imports, Taiwan recorded a merchandise trade surplus of about US$23.63 billion in September. The figures show that exports continued to grow faster than imports, while the sharp rise in imports also reflected increased demand from Taiwanese companies for raw materials, equipment and related products needed for production.

For Taiwan, rising imports do not necessarily signal a weakening economy. When export orders and technology manufacturing activity expand, companies often need to increase purchases of equipment, components and raw materials. Import and export data should therefore be assessed alongside industrial investment, manufacturing activity and subsequent orders.

Export momentum expected to continue in fourth quarter

Looking ahead, the Ministry of Finance expects export growth to continue into the fourth quarter, forecasting October exports to increase by about 40% to 44% year on year. Demand for AI applications, high-performance computing and cloud services is expected to remain an important source of support.

Several uncertainties remain, however, including fluctuations in global energy prices, inflationary pressure, changes in international trade policies and whether AI investment can maintain its current pace of growth. If major technology companies adjust their capital spending, demand for chips, servers and related components could be affected.

Taiwan’s heavy reliance on technology products also means that economic performance may vary across industries. Strong demand for AI and semiconductors does not necessarily mean that all traditional industries will benefit at the same time.

Overall, Taiwan’s record exports in September reflected the continued importance of global AI and technology investment as a growth driver for the economy. Whether exports to the US can maintain their strong performance, whether AI demand will continue and how the international trade environment develops will be key factors in assessing Taiwan’s export performance in the fourth quarter.