TAIPEI (Reuters – Taiwan’s export orders — a sign of global technology demand — dropped in April. The drop was due to COVID lockdowns and other global disruptions.

According to data released by the Ministry of Economic Affairs on Friday, export orders fell unexpectedly 5.5% to $51.9 billion from one year ago.

It was the first time in two years that the COVID-19 pandemic had swept the world, in 2020. This surpassed analysts’ expectations for an 8.3% increase.

The ministry reported that orders for telecommunications products decreased 21.5% year-over-year due to Chinese government efforts to curb the spread COVID-19.

According to the ministry, orders for electronic products rose by 4.3%. This was due to China’s lockdowns that “deepen the demand and supply imbalance”.

In the two-year period to date, growth was supported by strong tech demand. This has been fueled by the COVID pandemic’s work and study at home trend as well as the global semiconductor shortage which has forced Taiwanese chipmakers into a surplus.

According to the ministry, export orders for May will be down 1.1% and up 1.7% compared with a year ago.

Export orders increased 16.8% in March compared to a year ago, reaching $62.69 trillion, which is the highest monthly figure ever recorded.

April China orders fell 16.9% in April, as compared to an increase of 9.1% in the preceding month. Orders from the United States dropped 0.2% in April compared to the 18.9% growth recorded in March.

There was a 17% decline in orders from Europe compared to a growth rate of 20.1% during March. However, Japan saw a 11.3% drop.

Many Chinese cities experienced full and partial COVID lockdowns between April and May. These locked downs slashed demand and paralysed supply chain. Analysts warn that Shanghai is only beginning to loosen restrictions. It could take several weeks, or even months before conditions stabilize.

According to the Island’s Economy Minister, roughly half of Taiwanese businesses that were previously barred from China by COVID-19 controls measures are now producing again as restrictions ease.

Taiwanese firms such as Taiwan Semiconductor Manufacturing Co Ltd, (TSMC) supply major supplies to Apple Inc (NASDAQ :), Qualcomm Inc (NASDAQ 🙂 Inc and other tech companies worldwide.