TAIPEI (Taiwan News) —  The Ministry of Economic Affairs (MOEA) announced Tuesday (Oct. 15) that Taiwan’s server output from January to July reached NT$426.7 billion (US$13.2 billion), setting a new record.

According to a press release, the export value for the first nine months of this year was US$15.69 billion, the highest ever for the same period. The US was the largest export market, accounting for nearly 80% of Taiwan’s server exports, per CNA.

The MOEA’s Department of Statistics said the price and volume of products have increased with the easing of chip shortages and the surge in demand for high-end servers due to emerging applications like generative AI.

In terms of export regions, the department said the US was the largest market, with an average annual growth rate of 132.7% over the past six years, increasing from 8.1% in 2017 to 73% in 2023, and further to 78.9% in the first nine months of this year. Conversely, the export share to China has decreased from 41.4% in 2017 to 6.1% last year, further declining to 1.8% in the first nine months of this year.

Regarding the US market, due to its geographical proximity, Mexico has maintained a market share of around 70% for US server imports, ranking first, the department explained. However, the global supply chain has been reorganized with the rise of the trade war and US chip control measures against China.

Looking ahead, the department said as the waves of cloud computing and generative AI continue and countries compete to expand their computing power deployment, Taiwan's manufacturers, with their capabilities in high-end server manufacturing, are expected to boost server export momentum.