Core Insights - Taiwan's exports to the United States from January to July increased by 53.5% year-on-year, reaching $97.5 billion, marking a historical high for the same period [1][3] - Exports to mainland China grew by 14.3%, totaling $93.5 billion, with the U.S. now accounting for a larger share of Taiwan's exports than China for the first time in 26 years [1][3] - The increase in exports is attributed to rising demand for AI semiconductors and Taiwan's efforts to diversify its export destinations [1][6] Export Statistics - Total exports from Taiwan for the first seven months of the year grew by 28.3%, amounting to $339.9 billion [5] - Exports to the U.S. constituted 28.7% of total exports, while exports to mainland China accounted for 27.5% [5] - There has been a surge in urgent shipments to the U.S. due to concerns over potential tariff increases [5] Trade Structure Changes - Historically, from the mid-2000s to 2022, exports to mainland China represented about 40% of Taiwan's total exports, with major Taiwanese electronics firms establishing assembly plants in China [6] - The Taiwanese government has been working to reduce over-reliance on the Chinese market since the Democratic Progressive Party took power in 2016, leading to an increase in exports to the U.S. [7] - The investment boom in AI data centers in the U.S. has significantly supported the growth of high-tech exports from Taiwan, with exports of servers and communication equipment to the U.S. rising by 88% in July [7] Trade Surplus - Taiwan's trade surplus with the U.S. from January to July increased by 2.1 times year-on-year, reaching $69.7 billion, indicating a trend of expanding surplus [8] Investment Trends - The share of U.S. investments in Taiwan's foreign investment destinations has reversed in 2023, surpassing that of mainland China, driven by investments from companies like TSMC [6][7] - The economic interconnection between Taiwan and mainland China is showing signs of divergence, influenced by the evolving supply chain dynamics in the electronics sector [7]