Taiwan's Jan.-Oct. 2007 Machinery Exports Rise to US$12.29 Billion

Taiwan exported US$12.291 billion worth of machinery products in the first 10 months of 2007, scoring a growth of 6.6% compared with the same period of the previous year, according to statistics compiled by the Taiwan Association of Machinery Industry (TAMI).

Machine tools comprised the biggest category of machinery exports with US$2.796 billion worth of shipments during the first 10 months, an increase of 15.2%. Plastic and rubber machinery exports were second with US$814.58 million, up 4.3%. The third-largest export category was special-purpose machinery with US$797.05 million, up 6%, followed by valves and parts with US$777.1 million, up 9.9%; pumps, compressors, and fans with US$683.67 million, down 3.1%; and woodworking machinery with US$553.43 million, up 6.6%.

Other major machinery export categories included textile machinery; machine-tool parts and components; bearings, gears, and ball screws; molds and dies; sewing machines; paper-making and printing machines; and leather and shoe-making machines.

TAMI reports that mainland China and Hong Kong together were the largest outlet for these exports, buying US$3.894 billion worth of Taiwan-made machinery during the 10-month period. This was an increase of 1.7% over the same period of 2006, and it accounted for 34.4% of the total figure. The United States was the second-biggest market, taking US$1.95 billion worth of machinery, down 1% to make up 15.9% of the overall amount. Japan was third with US$680.49 million, up 1.5% and accounting for a 5.5% share.

TAMI vice president C.C. Wang says that Taiwan's exports of machinery to Europe and Asia have been generally on the rise over the past several months. As a result, Vietnam was the fourth-largest market during the January-October period, absorbing US$400.83 million worth, up 16.6%, Thailand was fifth with US$399.33 million, down 7.2%, and Germany was sixth with US$384.58 million, up a whopping 45.7%.

Other major outlets, in descending order, were Malaysia, Indonesia, India, Turkey, Italy, South Korea, the United Kingdom, the Netherlands, Canada, Singapore, Australia, Brazil, Spain, France, the United Arab Emirates, Finland, the Philippines, Mexico, Russia, and Saudi Arabia.

TAMI also notes that Taiwan imported US$15.162 billion worth of machinery in the first 10 months of last year, down 1.2% from the year before. The biggest import category was special-purpose machinery, with purchases totaling US$4.441 billion, down 7.2% and accounting for 29.3% of total machinery imports. Most of this special-purchase machinery is used in high-tech industries such as semiconductors and 3C (computers, communications, and consumer electronics). Second in imports was machine tool, with US$2.159 billion, up 40.4% to take a 14.2%.

Pumps, compressors, and fans came in third, with imports of US$806.2 million, down 9.5% and accounting for 5.3% of the total. Fourth place went to engines and parts with US$718.35 million, up 0.2% and amounting to 4.7% of the overall figure. Valves and parts were fifth with US$511.01 million, up 0.7% and accounting for a 3.4% share. Sixth place went to plastics and rubber machinery with US$267.57 million, down 13% to a 1.8% share. Seventh was textile machinery with exports of US$264.89 million, for an increase of 15.3% and a share of 1.7%.

Wang notes that Taiwan still relies heavily on Japan and the U.S. for machinery imports. TAMI statistics show that Japan was the island's most important source of these imports in the first 10 months of last year, supplying US$6.459 billion worth of machinery during the period; this was down 14.7% from 2006, but it still accounted for 42.6% of the total. The U.S. was the second-biggest source, supplying US$3.95 billion worth, up 16.7% to a share of 26.1%. Germany came in third with US$1.156 billion, up 11.7% and accounting for 7.6% of the total.

Hong Kong and China together were the fourth-biggest supplier, with shipments of US$1.144 billion representing an increase of 12.4%. Other major sources of machinery imports were, in descending order, South Korea, Switzerland, Italy, the United Kingdom, and France.

TAMI estimated that Taiwan's machinery exports rose by 8-10% for all of 2007 and noted that the falling value of the New Taiwan dollar was expected to continue stimulating the expansion of overseas shipments for the next several months at least. The association also estimated that the demand for imported precision production equipment by Taiwan's circuit board, TFT-LCD flat panel, and precision machinery industries grew by 25-30% during the year.

Exports of Taiwan-made Machinery in Jan.-Oct. 2007 by Product Cetegory Unit: US$1,000
Rank	Product Category	Jan.-Oct. 2006	Jan.-Oct. 2007	Annual Change (%)
1	Machine Tools	2,428,305	2,796,819	15.2
2	Plastics & Rubber Machinery	781,152	814,581	4.3
3	Special-purpose Machinery	751,860	797,058	6.0
4	Valves & Parts	707,065	777,105	9.9
5	Pumps, compressors, Fans	705,836	683,672	-3.1
6	Woodworking Machinery	519,406	553,431	6.6
7	Textile Machinery	516,166	534,731	3.6
8	Parts & Components	447,954	520,257	16.1
9	Bearings, Gears, Ball Screws	444,098	497,812	12.1
10	Molds & Dies	484,499	410,034	-15.4
11	Sewing Machines	374,663	323,717	-13.6
12	Paper Making, Printing Machinery	175,954	219,478	24.7
13	Leather & Shoes Making Machines	74,440	65,182	-12.4
	Others	3,122,985	3,297,615	5.6
	Total	11,534,383	12,291,492	6.6
Source: Taiwan Association of Machinery Industry

Imports of Machinery by Taiwan in Jan.-Oct. 2007 by Product Category Unit: US$1,000
Rank	Product Category	Jan.-Oct. 2006	Jan.-Oct. 2007	Annual Change (%)
1	Special-purpose Machinery	4,788,300	4,441,386	-7.2
2	Machine Tools	1,538,749	2,159,760	40.4
3	Pumps, Compressors, Fans	891,186	806,252	-9.5
4	Engines & Parts	717,268	718,356	0.2
5	Valves & Parts	507,667	511,015	0.7
6	Plastics & Rubber Machinery	307,672	267,574	-13
7	Textile Machinery	229,758	264,896	15.3
	Others	6,360,611	5,993,311	-5.8
	Total	15,341,211	15,162,550	-1.2
Source: Taiwan Association of Machinery Industry