Taiwan’s export sector witnessed a historic milestone in May 2025, as outbound shipments surged by 38.6% year-on-year to US$51.74 billion, breaking previous records and signaling the island’s critical position in global technology supply chains. This unprecedented growth, reported by Taiwan’s Ministry of Finance (MOF) on Monday, was largely attributed to a surge in urgent foreign orders ahead of looming U.S. reciprocal tariffs and robust global demand for AI and high-performance computing (HPC) components.
This is Taiwan’s 19th consecutive month of export growth, and marks the first time monthly exports crossed the US$50 billion threshold, according to Beatrice Tsai, chief statistician at the MOF.
📌 Key Drivers Behind the Surge
1. U.S. Tariff-Driven Urgency
The sharp uptick in exports was significantly driven by a rush of foreign purchases before the anticipated expiration of a 90-day suspension on new U.S. tariffs. Originally announced in April by President Trump, these tariffs — including a 32% duty on Taiwanese goods — were temporarily halted to allow negotiation. With the pause set to end in early July, global companies moved swiftly to stockpile Taiwanese tech goods.
2. AI and HPC Demand
Another core driver was a sustained global demand for next-generation technology. Exports of information and communication technology (ICT) and audio-video products soared 111.1% year-on-year to US$19.89 billion, led by strong shipments of servers, GPUs, display cards, and computer accessories used in AI training, big data centers, and cloud computing services.
3. Semiconductor Strength
Taiwan’s critical role in global chip manufacturing, led by companies like TSMC, was reaffirmed. Exports of semiconductors grew 30.1% to US$16.11 billion, driving the electronics component industry total to US$17.21 billion (up 28.4%).
📈 Trade Breakdown
- Total Exports (May 2025): US$51.74 billion (+38.6% YoY)
- Total Imports: US$39.13 billion (+25%)
- Trade Surplus: US$12.62 billion (+109.2% YoY)
Export Sectors (YoY growth):
Sector | Export Value (USD) | Growth (%) |
---|---|---|
ICT & Audio/Video Equipment | 19.89 billion | +111.1% |
Electronic Components | 17.21 billion | +28.4% |
Semiconductors (subset) | 16.11 billion | +30.1% |
Base Metals | 2.70 billion | +5.7% |
Machinery | 2.29 billion | +7.7% |
Electrical Equipment | 1.36 billion | +16.3% |
Plastics & Rubber | 1.67 billion | -4.7% |
Chemicals | 1.55 billion | -6.6% |
🌏 Top Export Destinations
In a noteworthy shift, the United States surpassed China and Hong Kong as Taiwan’s largest export destination in May.
- 🇺🇸 U.S.: US$15.52 billion (+87.4%)
- 🇨🇳 China + Hong Kong: US$14.06 billion (+16.6%)
- 🌏 ASEAN countries: US$9.83 billion (+52.3%)
- 🇯🇵 Japan: US$2.33 billion (+17.5%)
- 🇰🇷 South Korea: US$2.08 billion (+16.6%)
- 🇪🇺 Europe: US$3.32 billion (-0.6%)
This export realignment suggests growing diversification in Taiwan’s trade relationships and increasing reliance on the U.S. and ASEAN markets amid geopolitical shifts.
🔮 Forward Outlook
The MOF forecasts that June exports will grow 15-25% YoY, projected at US$45.7 billion to US$49.9 billion. However, this prediction is tempered by the risk of U.S. tariffs returning in July, potential softening in global demand, and rising interest rates in major economies.
Industry analysts note that AI infrastructure, semiconductor leadership, and Taiwan’s nearshoring advantage will continue to buffer Taiwan’s export sector from major shocks — but warn that supply chain resilience and policy adaptability will be critical in the second half of the year.
📋 FAQs
Why did Taiwan’s exports surge in May 2025?
The growth was driven by a pre-tariff order rush from foreign buyers and strong global demand for AI-related and semiconductor products.
What sectors saw the most growth?
Information and communication technology (ICT), electronics (especially semiconductors), and audio-video equipment were the top-performing sectors.
What role did U.S. tariffs play?
U.S. tariffs led buyers to fast-track orders ahead of a potential tariff reimplementation in July, significantly boosting May export figures.
Is this growth sustainable?
The growth is promising, but sustainability depends on geopolitical developments, global tech demand, and Taiwan’s ability to navigate trade policies.
Who are Taiwan’s biggest export markets now?
The U.S. is now the top market, followed by China/Hong Kong and ASEAN nations.