Despite the strong performance so far this year, Taiwan’s statistics bureau expects exports to contract in the second half.

After a prolonged slump, Taiwan's machinery industry is showing signs of recovery, with export growth recorded for the fourth consecutive month. According to the latest data from the Taiwan Machine Tool and Accessory Builders' Association,

Exports, the main growth driver, accounting for more than 60 percent of GDP, surged 24.3 percent year-on-year to US$229.96 billion in the first five months of this year, far above the government’s forecast, on unabated demand for advanced chips and information and communication technology products.

Taiwan's central bank is likely to maintain its policy interest rate this week and keep it steady through the first quarter of next year, given the strong performance of the tech-focused economy, according to economists in a Reuters poll.

Taiwan’s total exports of electronic components inched up by 28.4% in May of the year to $17.2 billion, with semiconductor exports up 30.1%. According to the country’s finance ministry, imports rose 25% to $29.13 billion, lower than economists’ predictions of 30.2%.

Taiwan has added China’s tech titan Huawei and chip giant Semiconductor Manufacturing International Corporation (SMIC) to its export control list, stepping up efforts to align with Washington’s crackdown on companies driving Beijing’s artificial intelligence ambitions.

Taiwan's exports hit a record USD 51.74 billion, marking a 38.6% year-on-year increase. The surge was driven by foreign orders ahead of U.S. tariff changes. The booming exports, particularly in ICT, resulted in a significant trade surplus while imports also grew,

Taiwan has emerged as one of the biggest winners in the current geopolitical and technological realignment. In May, the island’s exports surged 38.6% year-on-year to an all-time high of $51.74 billion—far exceeding the 25% gain forecasted by economists. This marks the 19th consecutive monthly rise and the strongest performance since 2010.