Imports extensively climb by 42%, achieving a new peak record
Taiwan's Exports Reach Record Highs, Propelled by AI and Semiconductor Boom
Taiwan's exports have surged to an all-time high, marking a third consecutive monthly record and extending a 21-month expansion streak. The primary growth driver behind this success is the surge in demand for AI-driven semiconductor and high-tech products.
According to the Department of Statistics Director-General, Beatrice Tsai, the momentum is expected to hold through the third quarter. In Q2 2025, Taiwan's GDP growth was propelled by a 34.06% year-on-year export increase, largely due to AI/high-tech manufacturing.
Taiwan's exports last month soared 42% year-on-year to US$56.68 billion, with electronics and information and communications technology making up 75.2% of total exports. The US remained Taiwan's top export destination for the third consecutive month, and exports to the US saw growth of over 50% in the first half of 2025.
Exports to ASEAN surged 71.6 percent to US$11.63 billion. The anticipation of the suspension of U.S. tariffs led foreign buyers to place advance orders, boosting shipments. However, a 20 percent tariff on Taiwanese imports could trim US-bound shipments by 9 percent to 12 percent.
Key factors amplifying this growth include Taiwan's leadership in producing the world’s most advanced chips (with TSMC's 2nm and 3nm process nodes dominating wafer revenue), technological advantages in chip packaging, and Taiwan's strategic position in global AI infrastructure supply chains. The semiconductor sector’s growth is expected to continue strong due to increasing AI accelerator demand projected through 2030.
The growth was driven by demand for artificial intelligence (AI) and high-performance computing (HPC) products. Electronics were the main growth driver, with shipments of components up 34.1%. Imports also jumped 20.8 percent to US$42.34 billion, reaching the second-highest monthly level.
Despite the imposition of tariffs, the impact on the semiconductor sector is yet to be assessed. Exemptions would apply to companies with existing or planned manufacturing facilities in the US. This month's exports are forecast to rise by 17 to 22 percent, indicating that the growth trend is set to continue. The surge was the fastest pace since 2010, and from January to last month, Taiwan's exports rose 28.3 percent to US$339.94 billion, and imports gained 20.5 percent to US$269.89 billion. Both full-year figures are on track to set new records despite an expected slowdown in the second half as front-loading activity subsides.
In summary, Taiwan’s record export highs in recent months stem mainly from AI and semiconductor exports responding to rising global AI infrastructure demand, tariff-related stockpiling, and substantial shipments to the US.
- The surge in Taiwan's exports can be largely attributed to the increased demand for AI-driven semiconductors and high-tech products, which are key factors in the nation's thriving technology industry.
- The robust growth in Taiwan's exports is also a reflection of the flourishing finance sector, as the soaring export figures propelled the country's GDP growth in Q2 2025, particularly due to the export increase in AI/high-tech manufacturing.
