Central Taiwan to be developed into stronghold for machinery industry

Taipei, March 21, 2005 (CENS)--President Chen Shui-bian noted central Taiwan would be developed as a stronghold for the domestic precision, nanotechnology-based, and biotechnology-based machinery industry.

President Chen recently made the announcement when visiting the Taipei International Machine Tools Show (TIMTOS) held March 15-20 at the Taipei World Trade Center. With the significant announcement, machinery makers in central Taiwan area are estimated to post annual production value of NT$300 billion (US$9.74 billion at US$1:NT$30.8) in 2007, up from the current level of NT$200 billion (US$6.49 billion).

In addition, the pilot investments in nanotechnology- and biotechnology-based machinery will reach NT$10 billion (US$324.67 million) in 2007, which are expected to create 30 intellectual properties with royalty revenues reaching NT$20 million (US$649,000) per year.

Based on the present central Taiwan precision machinery innovation, research and development community subproject included in the Cabinet-initiated Challenge 2008 National Development Program, an R&D alliance consolidating the sectors of machine tools, mold and dies, and key components will be formed to help domestic relevant manufacturers with technological upgrading and industrial transformation.

Chen also encouraged manufacturers in central Taiwan to set up a core industry embracing localized characteristics. He expected the convenient maritime and air transport network of the Taichung harbor and international airport would prompt the machinery industry to cement connections with the global community so that domestic machinery manufacturers can develop at the same pace as international-class firms.

The biennial TIMTOS, deemed one of the world's top-three machine tool shows, saw 642 participating exhibitors, including 515 domestic ones and 127 from abroad occupy a total of 2,664 booths this year, up 31% from the preceding same show held two years ago and hitting an all-time high. The show was co-organized by the semi-official Taiwan External Trade Development Council (TAITRA) and the Taiwan Association of Machinery Industry (TAMI).

TAITRA noted TIMTOS has caught the eyes of buyers from around the world as domestic manufacturers in this line have been aggressively involved in the research and development of next-generation precision machine tools and state-of-the-art accessories.

The outstanding R&D achievements were mirrored in the exhibits of precision horizontal machining centers, turning centers, milling machines, multi-spindle CNC (computerized numerically controlled) machine tools, large-sized precision metal-forming machine tools, and linear motor-based models at the show.

Overall production value of the domestic machine-tool industry grew 30% year-on-year to US$2.89 billion last year, making Taiwan outpace the U.S. for the first time as the world's fifth-largest producing nation, only behind Japan, Germany, Italy, and mainland China.

Taiwan was the world's fourth-largest exporter of machine tools with exports reaching US$2.25 billion last year, up 34% from the year earlier and only behind Germany, Japan and Italy.