CNC Device Supply to Taiwan's Machine-tool Firms to Normalize

Taipei, July 1, 2011 (CENS)--Japan-based Mitsubishi Electric has promised to fully restore supply of CNC (computer numerical control) devices beginning July to Taiwan's machine-tool firms, who have faced supply shortage of key components from Japan after the massive earthquake and tsunami on March 11, which drove Japanese manufacturers of key components, including NSK, THK, Mitsubishi Electric and Fanuc, to limit supplies through quotas.

Mitsubishi announced normal production and will deliver products on-time to Taiwan's machine-tool clients beginning 2012.

The supply crunch has undermined punctual deliveries by many domestic machine-tool firms as Victor Taichung Machinery Works Co., Tongtai Machine & Tool Co., Kao Fong Machinery Co., Falcon Machine Tools Co. etc.

These manufacturers currently have undelivered orders of between NT$800 million and NT$3.2 billion, with the Fair Friend Group holding over NT$10 billion in undelivered orders. The parts shortage has resulted in longer lead times, up to two months after order confirmation for most models and six months for others.

With key parts supply to fully recover, Hsu Hsiu-tsang, chairman of the Taiwan Association of Machinery Industry (TAMI), said the production value for Taiwan's machine-tool industry will total US$5 billion this year.