US is Taiwan’s main export market

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TAIPEI: The United States has topped long-time leader China as Taiwan’s main export market for four consecutive months due to a surge in demand for microchip products and AI technology, Taipei’s Finance Ministry said Friday.

Self-ruled Taiwan is a microchip-manufacturing powerhouse, churning out the world’s most advanced silicon wafers necessary to power everything from e-vehicles and satellites to fighter jets and increasingly to power AI technology. For two decades, its top export market has been China—which claims Taiwan as part of its territory—but December data from the Finance Ministry shows the United States topping the list for the first time since August 2003.

Those figures exclude Hong Kong, which holds its own status as a customs territory. When combined with mainland tallies, China remains the top destination for Taiwanese goods.A Finance Ministry official in the trade division attributed the recent US tilt to the global “reorganisation of electronics and ICT supply chains, and the popularity of the AI industry”.

A Bloomberg survey of economists had forecast exports to fall just 1.9 percent and imports to rise one percent. He added that comparing Chinese trade over the first quarter of the year instead of a monthly basis “shows a reasonable story about external demand”.

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