SIMIC

The government expects exports to grow 9.6 per cent overall this year on the back of increased semiconductor demand. March imports jumped 27 per cent to $32.2 billion, coming in above $30 billion for the first time.

"Rising electronics export orders and the global chip shortage all point to continuing rapid growth in the electronics sector, particularly in the foundry industry," said Oxford Economics economist Lloyd Chan.

"We expect exports to continue growing robustly, supported by a global recovery, buoyant demand for semiconductors, and a broadening of demand for non-tech goods such as chemicals, plastics, and metals," he said.

Demand is improving in the US and Europe. South Korean exports increased 16.6 per cent in March year on year while Chinese shipments jumped 60.6 per cent in dollar volume in January and February combined.

Demand for electronics during the Covid crisis has led to shortages of computer chips, pushing up their prices and further boosting the value of Taiwan's exports. Excluding January's increase, which may have been distorted by the Chinese New Year holiday, exports grew last month by the fastest pace since 2017.

The country's major technology companies have been scrambling to keep up with overseas demand. Taiwan Semiconductor Manufacturing, the island's largest company, reported an almost 14 per cent increase in sales in March, with revenue hitting $4.54 billion.

Exporters shipped a record-high $13.5 billion in electronic components, which includes semiconductors, in March. China and the US were the main drivers of March's growth, with shipments to China rising 36.3 per cent and to the US, up 34.7 per cent.