Taiwan is riding AI and iPhones to a boom time

Exports from Taiwan, one of the great gears in the global tech machine, are booming. They soared 16% in August compared to the prior year, as demand for electronic equipment and semiconductors continued to surge. The US demand was especially strong, with goods exported to the US jumping nearly 80% compared to last year.

The surge of exports to the US comes as those to China’s struggling economy have languished, a dynamic that underscores the delicate geopolitical position of Taiwan. Over decades, the island has sought — and largely succeeded — in bolstering its security relationship with the west by making itself an indispensable supplier of high-end semiconductors, many of which are produced by Taiwan Semiconductor.

But for the record, the boom in exports in August was largely driven by surging sales of “audiovisual, information, and computer products,” a category that covers finished smartphones, such as the iPhone 16 — made by Taiwanese contract manufacturer Foxconn — that Apple is set to officially unveil today.