Machinery Sector in Taiwan Exports 10.9% More Products in First Five Months

Taiwan exported US$7.0615 billion of machinery in the first five months of 2008, representing a 10.9% year-on-year growth, according to customs-cleared statistics compiled by the Taiwan Association of Machinery Industry (TAMI).

Machine tools as a group saw the highest export value at US$1.5701 billion in the first five months of this year, up 19.9% from a year earlier. The second highest group exported was special-purpose machinery at US$555.94 million, up 17.6%. Plastics and rubber processing machinery as a category saw the third-highest export at US$440.169 million, up 10.7%. Other product categories, as valves and parts and pumps, compressors and fans, in descending export values and annual changes, are tabulated below.

As in the past, Hong Kong and mainland China collectively ranked first by absorbing US$2.026 billion of Taiwan-made machinery, up 3% year-on-year and accounting for 28.6% of overall exports. The U.S. came in second with US$1.031 billion, down 3.5% and commanding 14.7%. Japan was the third-biggest buyer of Taiwan-made machinery, totaling US$411.67 million, up 3.9% and accounting for 5.9%. Vietnam ranked fourth with US$287.04 million, up 59.1%. Germany ranked fifth with US$264.32 million, up 26.1%. The sixth place went to Thailand with US$214.62 million, down 6.1%.

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

Machinery Imports

The TAMI's figures also showed Taiwan imported US$8.371 billion of machinery in the first five months of 2008, up 14.9% year-on-year.

Special-purpose machinery as a category saw the highest import value at US$2.511 billion, up 28.1% year-on-year and accounting for 30% of the total imports. The second highest import group was machine tools at US$850.14 million, down 11.2% and commanding 10.2%. The category of pumps, compressors and fans came in third at US$US$442.7 million, up 8.3% and accounting for 5.3%. Other major categories imported, in descending order, are tabulated below.

C.C. Wang, vice president of the TAMI, said Taiwan's imported machines are mainly employed by high-tech sectors as optoelectronics, communications, information technology and semiconductor.

Wang noted Taiwan still relies on Japan and the U.S. for imports of advanced machinery. Japan supplied the lion's share of machinery imports into Taiwan, totaling US$3.602 billion, in the first five months of this year, up 15.7% year-on-year and accounting for 43% of the total imports. The U.S. ranked second at US$1.888 billion, up 4.8% and commanding 22.6%. Hong Kong and mainland China were third at US$783.96 million, up 32% and accounting for 9.4%.

Other major import sources, in descending order, were Germany, South Korea, Italy, United Kingdom, Switzerland and France.

TAMI predicted Taiwan's machinery makers will export between 8% and 10% more products year-on-year in 2008. With the expected 25% to 30% growth in domestic demand for PCB (printed circuit board) manufacturing equipment, TFT-LCD (thin film transistor-liquid crystal display) manufacturing equipment, and high-value-added precision machinery and parts, the machinery makers in Taiwan will see 8% to 10% growth in annual production value in 2008, reaching NT$960 billion.

Exports of Taiwan-made Machinery by Products (Jan.-May 2008) Unit: US$1,000
Rank	Category	Jan.-May 2007	Jan.-May 2008	Annual Change (%)
1	Machine Tools	1,309,779	1,570,128	19.9
2	Special-purpose Machinery	472,754	555,943	17.6
3	Plastics & Rubber Machinery	397,545	440,169	10.7
4	Valves & Parts	375,858	387,812	3.2
5	Pumps, compressors, Fans	340,622	380,298	11.6
6	Bearings, Gears, Ball Screws	233,865	294,707	26
7	Parts & Components	258,452	291,211	12.7
8	Woodworking Machinery	259,091	270,486	4.4
9	Textile Machinery	271,698	227,419	-16.3
10	Molds & Dies	201,643	212,338	5.3
11	Sewing Machines	157,748	156,081	-1.1
12	Paper Making, Printing Machinery	121,524	110,612	-9
13	Leather & Shoes Making Machines	29,407	37,922	29
	Others	1,889,595	2,071,033	9.6
	Total	6,319,581	7,006,159	10.9
Source: Taiwan Association of Machinery Industry

Machinery Imports Into Taiwan by Products (Jan.-May 2008) Unit: US$1,000
Rank	Category	Jan.-May 2007	Jan.-May 2008	Annual Change (%)
1	Special-purpose Machinery	1,960,129	2,511,672	28.1
2	Machine Tools	957,762	850,149	-11.2
3	Pumps, Compressors, Fans	408,739	442,704	8.3
4	Engines & Parts	394,158	353,589	-10.3
5	Valves & Parts	260,405	257,703	-1
6	Textile Machinery	153,419	143,952	-6.2
7	Plastics & Rubber Machinery	137,085	118,224	-13.8
	Others	3,013,131	3,693,810	22.6
	Total	7,284,828	8,371,803	14.9
Source: Taiwan Association of Machinery Industry