Taiwan' s Machine Tool Makers Benefit From Fast-Growing Consumer Electronics Sector

Taipei, March 17, 2006 (CENS)--Thanks to the hot sales of consumer electronics worldwide, Taiwan' s manufacturers of machine tools, PCB (printed circuit board) drilling machines and metal-forming equipment are enjoying a booming business.

Of domestic machine-tool manufacturers, Tong-Tai Machine Tool Co., Taiwan Takisawa Technology Co., Ta Liang Technology Co., and Kent Industrial Co. have recently raised their annual financial projections for this year. Some of them have introduced high-tier PCB drilling machines featuring 200, 000 up to 250, 000 revolving per minute in spindle speed to grab the lucrative business opportunities.

In the past, domestic consumer-electronics firms tended to procure Japan-made PCB machines to facilitate their production. In recent years, domestically made PCB drilling machines have chalked up 70% of domestic market because they boast the same quality as those made in Japan but are 20% cheaper.

Thanks to the rapid growth in such consumer electronics as MP3 music players and cellphones, domestic PCB and related equipment manufacturing sector are enjoying an increase in orders.

Of domestic listed machine-tool makers, Tong-Tai ranked first by securing orders for 250 PCB drilling machines last year, followed by Ta Liang with 220 units. Tong-Tai said it would be able to see sales of PCB drilling machines grow 50% annually to reach NT$1.5 billion (US$46.87 million) this year. Ta Liang said it would challenge sales of 500 PCB drilling machines and metal-forming machines this year, up 40% from last year.

Tong-Tai noted it would focus on the production of high-end PCB drilling machines with 200, 000 up to 250, 000rpm this year, rather than the less-competitive ones with spindle speed under 160, 000rpm. The company stated its switch into high-end models would help it avoid intense price competition and raise profit margin.

Besides Tong-Tai, others like Taiwan Takisawa and Ta Liang will also introduce high-end PCB drilling machines featuring over 200, 000rpm in spindle speed this year.

An industry insider estimated Taiwan Takisawa and Ta Liang would see annual sales growth surpass 10% and 20% this year, respectively because of the steady prices of raw materials and growth in orders received.

Different from domestic competitors, Ta Liang has successfully developed CNC controllers with the assistance of the Power Mechanical Engineering Department of the National Tsing Hua University.

Thanks to its cost-effective operations, Ta Liang has received 100 PCB drilling machines in the second half of last year, triple that of the fist half. The company boasted it received orders for 138 PCB drilling machines last year. The company estimated it would see sales of PCB drilling machines grow 30% this year.