TAIPEI, Reuters – Taiwan’s January exports rose slightly for the 19th consecutive month, but at a slower rate than expected. This was due to continued strong demand from tech companies and stockspiling in advance of the Lunar New Year. Strong growth is predicted for the first quarter.

According to Friday’s Ministry of Finance, exports rose by 16.7% compared with a previous year and reached $39.98 Billion.

An analyst poll by Reuters had predicted a growth of 17.2% in the month. This compares to a December increase of 23.4%.

The record-breaking exports of the island rose by 29.4% to 2021, aided by strong global demand for its tech products (from semiconductors to telecommunications equipment).

Ministry officials attributed January’s strong growth to strong demand in tech exports, such as electronics components and chips. A shortage of these parts has caused global car plant shutdowns. It is also affecting consumer electronics.

It also said that exports were also helped by stockpiling in advance of the Lunar New Year holiday, which falls the first week February.

In January, electronics component exports were up 19.7% to $15.91 Billion. This was due to semiconductor exports increasing 20.9% while telecommunication and video-visual product exports rising 14.3% compared with a year ago.

Companies expect that chip shortages will last for at least the remainder of the year. This will allow Taiwanese firms to continue filling their order books.

Taiwan Semiconductor Manufacturing Co Ltd. (TSMC), Thursday announced a 35.8% year-over-year increase in net revenues from January to T$172.18 trillion ($6.19 Billion).

TSMC and other tech companies are important suppliers to Apple Inc. (NASDAQ:). They also supply chips for automobile companies as well as lower-end consumer electronics.

The warnings from the finance ministry included uncertainty around COVID-19, supply chain disruptions, and China-U.S. frictions.

However, it stated that Taiwan’s quarter one exports would likely grow at a double-digit rate due to the sustained global demand of tech products such as chips and a gradual improvement in economic fundamentals.

The January increase in exports from Taiwan to China was 5.7%, to $15.70 Billion. That compares with an 16.2% year-over-year growth. In contrast, the rise of exports to America jumped by 34.2%. This is faster than the 29% gain recorded in the preceding month.

According to economists’ estimates of a 25 percent increase in imports, this was in line after a 28.1% December rise.

The ministry stated that Taiwan may see its February exports rise by between 13% and 15% compared to a previous year.

($1 = 27.8230 Taiwan dollars)