August Exports Surge 34.1% Year-on-Year
Driven by the "AI Boom"
In August, Taiwan's export volume reached an all-time high, driven by robust semiconductor exports fueled by the artificial intelligence (AI) boom. For the first time, Taiwan surpassed South Korea in monthly export figures.
According to Bloomberg and other sources on September 9, Taiwan's Ministry of Finance announced that August exports soared 34.1% year-on-year to a record $58.49 billion (approximately 81.0554 trillion won). This figure exceeds South Korea's export volume for the same month, which was $58.4 billion (about 80.9307 trillion won), as reported by the Ministry of Trade, Industry and Energy.
Additionally, Taiwan's August export growth rate far exceeded Bloomberg's market consensus (median) of 25%. In August, Taiwan's exports of semiconductors and electronic components increased by 37.4% and 34.6%, respectively, compared to the same period last year.
Although the Donald Trump administration in the United States implemented a 20% reciprocal tariff on Taiwan starting August 7, Bloomberg explained that a significant portion of Taiwan's main export items, such as semiconductors, are not yet subject to these tariffs. President Trump has recently signaled plans to announce itemized tariffs on semiconductors soon, but it remains unclear what tariff rates will apply to Taiwanese companies such as TSMC, which recently announced investments in the United States.
Chai Meina, Director-General of Taiwan's Ministry of Finance Statistics Department, stated that so-called "front-loading" exports, where goods are shipped early to secure inventory before tariffs take effect, are subsiding. However, she added, "AI demand is exceeding expectations." She also confirmed that this is the first time Taiwan's monthly exports have surpassed those of South Korea.
Taiwan's August imports rose 29.7% year-on-year to $41.66 billion (about 57.7 trillion won), and the trade surplus reached a record $16.83 billion (about 23.3 trillion won). Exports to the United States in August surged 65.2% year-on-year to a record $19.63 billion (about 27.2 trillion won). The Ministry of Finance expects Taiwan's trade surplus with the United States to reach $100 billion (about 138.5 trillion won) this year. Taiwan's exports to the United States from January to July have already surpassed the total for all of last year. In contrast, South Korea's exports to the United States in August fell 12% year-on-year, affected by the Trump administration's second-term tariff policies. Taiwan's exports to China in August increased 15.9% compared to the same period last year.
Previously, benefiting from the AI boom, Taiwan revised its economic growth forecast for this year from 3.1% to 4.45% last month.
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