Taiwan Hit By Biggest Export Decline In 14 Years, Semiconductor Chip Exports Down By 20.8%

Taiwan’s exports of semiconductor chips dropped for a sixth consecutive month as sluggish global demand continues to hit the country's chip firms.

Chip exports suffered a 20.8 percent decline from a year earlier to a four-month low of $12.6 billion, according to data published by Ministry of Finance.

“The demand for integrated circuits continues to be weak,” the ministry said in a statement.

The annual decline in chip exports was the sharpest since March 2009.

Taiwan's overall exports in June fell 23.4% in value terms, the biggest decline since 2009.

Taiwan's IT industry is also facing its biggest slump on record, with the combined sales of 19 major companies down about 20% on the year in June, Nikkei reported.

Taiwan Semiconductor Manufacturing Co, the world's largest contract chip maker, reported that its sales fell by $5 billion in June, the fourth consecutive month of decline.

Foxconn, another Taiwanese electronic manufacturing behemoth, saw its June sales down 19.7%, the fifth consecutive month of decline.

The protracted US-China trade tensions have also adversely affected Taiwan’s biggest industry. Shipments to China, including Hong Kong, which together account for more than 50 percent of Taiwan’s chip exports, fell for an eighth consecutive month.

Boosted by a global surge in demand for electronic components and semiconductor chips, Taiwan exports touched a record high of $446.45 billion in 2021.

In 2021, exports of Taiwan-made electronics components rose 26.9% from a year earlier to $172.01 billion, with semiconductor outbound sales growing 27.1% from a year earlier to $155.50 billion.

Exports of Taiwan's information and communications gadgets and audio and video devices also showed strong growth, climbing 24.8% from the previous year to US$61.35 billion.

While chip and electronic manufacturing contribute about 80% of the nation's total manufacturing output, other industries like chemicals, base metals, auto parts, and machine tools make up the remaining 20%. A decade or two earlier, the sectors' contributions were almost uniform.