Taiwan’s April Tech Exports Drop Sharply, Dragged Down by AI Server Exports

Overview

This report analyzes Taiwan’s tech export data for April and finds that overall exports declined 9.5% month-on-month—well below expectations—primarily due to weaker AI server exports and reduced shipments to the U.S. The report suggests this trend may negatively impact related industries.

Core views

Taiwan’s tech exports in April posted a sharp decline of 9.5% month-on-month, significantly underperforming market expectations. Exports of information, communication, and audio-visual products—including AI servers—fell 19.0% month-on-month, constituting the main driver behind the overall export contraction. By destination, exports to the U.S. registered the largest decline at 20.5% month-on-month, accounting for three-quarters of the total drop. On the import side, although imports also declined month-on-month, the drop was more modest at 3.5%. As a result, the trade surplus narrowed to USD 14.4 billion—the lowest level since September last year. The report notes that while Taiwan’s tech exports had been robust year-to-date, April’s data signals a potential slowdown in this growth momentum. In particular, AI server exports—following a strong increase the prior month—experienced a notable reversal this month.

Analysis framework

The report evaluates Taiwan’s overall tech export performance using seasonally adjusted monthly data, incorporating both year-on-year and month-on-month comparisons. It pays special attention to changes across product categories and major export destinations to identify key underlying drivers. First, the report provides a detailed analysis of exports of information, communication, and audio-visual products—with particular focus on AI server performance. Second, by comparing export data across major destinations, it identifies the pronounced decline in exports to the U.S. as a critical factor behind the overall export weakness. Finally, the report also examines import trends and, together with the evolving trade surplus, further corroborates the export slowdown.

Methodology notes

• Supply-Demand Framework

  The report reveals how demand-side volatility across product categories impacts overall export performance

  By analyzing export fluctuations in information, communication, and audio-visual products, the report illustrates how demand volatility in specific product segments affects aggregate export performance

• Upstream-Midstream-Downstream Supply Chain Transmission

  The report reveals transmission effects within the global supply chain by analyzing shifts across key export destinations

  By comparing export data across countries and regions, the report highlights global supply chain transmission effects—particularly the sharp decline in exports to the U.S.

Key data

• April Tech Export MoM Change-9.5%MoM decline, well below expectations
• April AI Server Export MoM Change-19.0%Sharp MoM decline, primary driver of export weakness
• April Exports to U.S. MoM Change-20.5%Large MoM decline, accounting for three-quarters of total drop
• April Trade SurplusUS$14.4bnNarrowed MoM, lowest since September last year

Impact & implications

The report concludes that the sharp April decline in Taiwan’s tech exports—especially in AI servers and shipments to the U.S.—may signal a broader softening in global tech demand. This poses near-term headwinds for related industries and companies.

Risks

• Slowing global tech demand could lead to further export declines
• Volatility in AI server market demand

What to watch

• Changes in export data over the coming months
• Recovery trajectory of AI server market demand