Taiwan's Exports to America Surges 87% Amid Customer Stockpiling
IT Industry Riding on AI and Pre-Tariff US Demand Wave, But Can Momentum Last?
Taiwan’s exports hit an all-time high in May, with monthly outbound shipments surpassing US$50 billion for the first time. The milestone was driven by surging demand for semiconductors, ICT products, and a rush of orders from the United States ahead of looming tariff changes.
The U.S. reclaimed its position as Taiwan’s top export destination in May, after briefly surpassing China earlier this year in February. The surge came on the heels of the U.S. President’s “Liberation Day” policy announcement and a 90-day pause on reciprocal tariffs, which triggered a wave of front-loaded orders from American customers.
It is worth noting that the export growth was so robust that it completely ignored the Taiwanese currency’s 7% appreciation in May.
Export Surge on ICT, AI demand
At the heart of Taiwan’s export success was the semiconductor sector. Exports of integrated circuits (ICs) hit US$16.1 billion, marking a 30% year-on-year increase. DRAM exports alone soared by 130%, totaling US$1.5 billion.
The ripple effect extended to the broader PC ecosystem. Exports of PCs, peripherals, and components more than doubled compared to a year earlier, as overseas buyers rushed to secure inventory ahead of potential price increases from new tariffs.
Fuelled by the AI boom, Information and Communication Technology (ICT) product exports skyrocketed to US$19.886 billion, a 111.1% jump year-on-year. Together, semiconductors and ICT products accounted for US$37.092 billion, representing 71.69% of Taiwan’s total exports in May.
China Still a Key Market
Despite the U.S. export surge, China (including Hong Kong) remains a vital and stable market for Taiwan. From January to May, Taiwan’s exports to China and Hong Kong reached US$64.614 billion. Of that, electronic components, led by semiconductors, made up US$40.967 billion (63.4%), while ICT products accounted for US$8.744 billion (13.53%). Combined, these sectors represented 76.93% of Taiwan’s total exports to the Chinese market.
Looking Ahead: Risks and Trade Restrictions Loom
While American consumers may be spared from sticker shock on tech products this holiday season, some analysts caution that Taiwan’s export momentum may slow in the second half of the year. The current surge appears partially driven by pre-tariff stockpiling, a one-time effect unlikely to persist.
Adding to the uncertainty, Taiwan’s International Trade Administration (ITA) recently added 601 foreign entities—including China’s Huawei and SMIC—to its Strategic High-Tech Commodities (SHTC) Export Control Entity List. This move, aimed at curbing technology exports to companies linked to weapons proliferation, means Taiwanese firms must now obtain government approval before selling to these entities.
While Taiwan’s tech-driven export engine shows impressive short-term acceleration, global trade headwinds and geopolitical controls may soon apply the brakes. The second half of 2025 could test just how sustainable this growth really is.