Taiwan November Export Orders Stay Near Record High -- Update

By Aries Poon and Jenny W. Hsu

TAIPEI--Taiwan's export orders in November stayed close to the record high reached in the prior month, as demand for components for new iPhones and other mobile devices remained strong.

Overseas buyers placed US$43.51 billion of orders with Taiwanese manufacturers last month, up 6.0% from a year earlier, the Ministry of Economic Affairs said Monday.

November's export orders were the second highest ever after the US$44.91 billion posted in October.

Taiwan has benefited from the U.S. economic recovery more than other Asian exporters, such as Japan and Singapore, in part because of the island's central role in the global supply chain of electronic products. Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co., for instance, are main suppliers of Apple Inc.'s iPhones and iPads. The global rollout of the fourth-generation mobile network has also created additional demand for smartphones and tablets in various price segments.

Export orders for electronic products--mostly microprocessors for smartphones--rose 8.4% from a year earlier, lower than a 14% advance in October. Orders for information and communication products increased 17% after growing 21% in October.

Taiwan's export orders indicate actual exports for a month or two later, and are seen as a barometer for the global electronics sector.

In the 11 months ended Nov. 30, Taiwan's export orders grew 7.0% from a year earlier. Economists say orders are unlikely to have the kind of sustained double-digit growth they experienced during the decade before the 2008 financial crisis, as regional competition has strengthened in recent years.

U.S. demand rose 14% in November, after a 17.4% rise in October. Orders for electronics products from the U.S. have been growing sequentially over the past few months, underlining the strength of the recovery there.

Demand from Europe rose almost 19%, after a 30% rise in October.

In November, orders from China and Hong Kong dropped 3.4% from a year earlier, compared with an 3.0% rise in October.

Write to Aries Poon at [e-mail] and Jenny W. Hsu at [e-mail]