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Semiconductor-starved mainland China seen driving long-term surge in exports from Taiwan

  • Global chip shortage – caused by a glut in pandemic-era orders, China-US tensions and new demand from automakers – is piling pressure on chip buyers to secure supplies
  • Mainland tech firms said to be stockpiling for the future in case worsening relations with the United States make it even harder to get Taiwanese tech supplies

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Demand for made-in-Taiwan PCs, chips and other electronics has surged since mid-2020 as people rely more on computers during the pandemic. Photo: Handout

The first-quarter jump in tech powerhouse Taiwan’s export orders from mainland China and Hong Kong will probably be sustainable through 2021 due to competitive demand for semiconductors amid the rapid global economic recovery, economists say.

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Orders from Hong Kong and the mainland rose 34 per cent in March and 47 per cent in the first quarter compared with a year earlier, the Ministry of Economic Affairs said on Tuesday. Mainland and Hong Kong importers accounted for 33.7 per cent of those orders in March, lagging the United States by less than one percentage point, ministry data shows.

“Taiwan’s exports are indeed booming, but the dependence on China in terms of its importance as an export destination is not shrinking,” said Alicia Garcia-Herrero, chief Asia-Pacific economist with French investment bank Natixis.

She expects that trend to continue through year’s end, pacing the world’s economic recovery. China, a factory hub, is looking to prosper on the growth in global demand for manufactured goods as major economies get back on track following pandemic-related shutdowns.

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Taiwan’s worst drought in decades adds pressure to global chip shortage

Taiwan’s worst drought in decades adds pressure to global chip shortage

Taiwanese export orders from around the world expanded in March for the 13th consecutive month, rising 33.3 per cent in value from a year earlier to US$53.7 billion, the ministry said.

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