Taiwan's Machinery Exports and Imports Plummet in 2009

Tightened bank financing is a major hurdle for machinery trade

Taiwan exported US$11.35 billion of machinery in 2009, down 31.7% year-on-year, according to the Taiwan Association of Machinery Industry (TAMI), as well as having imported US$15.209 billion of machinery, down 17.6%.

The TAMI says Taiwan's machinery exports had declined until the last month of 2009, with the trend reversing in December to rise 8.2% relative to that last year to total US$1.184 billion, the first uptrend in 13 months.

Machine tools led in export value, totaling US$1.743 billion in 2009, down 53.2% year-on-year. Plastics and rubber processing machinery came in second at US$746.57 million, down 31%. Special-purpose machinery was third at US$737.52 million, down 41.4%. (See table below)

China and Hong Kong together was the island's largest export outlet by absorbing US$3.137 billion of machinery in 2009, down 31% year-on-year for 27.6% of the total exports. The U.S. was second at US$1.858 billion, down 29.5% and commanding 16.4%. Japan was third at US$732.02 million, down 26.6% and accounting for 6.4%. (See table below)

Other major outlets, in descending order, included India, Indonesia, Malaysia, South Korea, Singapore, Canada, etc.

Imports

The largest category of machine tools imported into Taiwan in 2009 was machinery for ICs and semiconductors, totaling US$5.901 billion for 38.8% of the total imports. Special-purpose machinery was second at US$1.259 billion, down 75.2% for 8.3% of the total. Engines and parts came in third at US$758.5 million, down 3.9% and accounting for 5%. (See table below)

Other major import products, in descending order, included valves and parts; machinery for glassware; handling equipment; air conditioning and refrigerators; machine tools, etc.

Import Suppliers

Japan led among suppliers of machinery to Taiwan in 2009 at US$6.141 billion, down 22.8% year-on-year for 40.4% of the total imports. The U.S. was second at US$3.064 billion, down 18.5% and commanding 20.1%. China and Hong Kong together ranked third at US$1.572 billion, down 14.5% and accounting for 10.3%. (See table below)

TAMI president C.C. Wang notes that the biggest hurdle in the way of the domestic machinery industry is tightened bank financing as well as sagging investment in capital expenditure after the global meltdown, hence impacting machinery purchases globally.

Exports of Taiwan-made Machinery by Category in 2009 Unit: US$ million
Rank	Product Category	2008	2009	Change (%)
1	Machine Tools	3,721.055	1,743.285	-53.2
2	Plastics & Rubber Machinery	1,081.827	746.578	-31
3	Special-purpose Machinery	1,258.307	737.521	-41.4
4	Valves & Parts	960.682	669.573	-30.3
5	Pumps, Compressors, Fans	904.202	662.673	-26.7
6	Bearings, Gears, Ball Screws	712.305	538.187	-24.4
7	Machine-tool Parts & Components	689.246	415.651	-39.7
8	Molds & Dies	537.884	410.805	-23.6
9	Textile Machinery	481.336	381.021	-20.8
10	Woodworking Machinery	601.412	362.440	-39.7
11	Food & Packaging Machinery	364.889	301.163	-17.5
12	Sewing Machines, Leather & Shoes-making Machines	361.092	263.498	-27
13	Paper-making, Printing Machines	252.154	189.572	-24.8
	Others	4,703.541	3,928.580	-16.5
	Total	16,629.932	11,350.547	-31.7
Source: Taiwan Association of Machinery Industry

Imports of Machinery into Taiwan by Category in 2009 Unit: US$ million
Rank	Produce Category	Jan.-Nov. 2008	Jan.-Nov. 2009	Change (%)
1	Machinery for ICs, Semiconductors	--	5,901.377	--
2	Special-purpose Machinery	5,072.916	1,259.296	-75.2
3	Engines & Parts	789.663	758.523	-3.9
4	Pumps, Fans, Compressors	1,061.688	709.127	-33.2
5	Equipment for Materials Treatment	1,567.421	667.284	-57.4
6	Components and Parts	759.172	504.482	-33.5
7	Valves & Parts	623.028	415.293	-33.3
8	Machinery for Glassware	896.682	393.165	-56.2
9	Handling Equipment	623.016	390.230	-37.4
10	Air Conditioning & Refrigeration Equipment	500.590	371.231	-25.8
11	Machine Tools	1,535.735	340.805	-77.8
12	Textile Machinery	314.266	192.271	-38.8
13	Plastics & Rubber Machinery	323.286	175.503	-45.7
	Others	4,383.555	3,131.198	-28.6
	Total	18,451.018	15,209.785	-17.6
Source: Taiwan Association of Machinery Industry

Taiwan's Machinery Exports by Market in 2009 Unit: US$ million
Rank	Country	2008	2009	Annual Change (%)
1	China + Hong Kong	4,544.744	3,137.096	-31
2	United States	2,636.855	1,858.278	-29.5
3	Japan	997.349	732.026	-26.6
4	Vietnam	633.576	440.196	-30.5
5	Thailand	529.163	424.679	-19.7
6	Germany	650.940	322.61	-50.4
7	India	394.111	319.98	-18.8
8	Indonesia	435.37	292.515	-32.8
9	Malaysia	404.911	280.862	-30.6
10	South Korea	312.375	223.433	-28.5
	Others	5,090.538	3,318.872	-34.8
	Total	16,629.932	11,350.547	-31.7
Source: Taiwan Association of Machinery Industry

Supplier Countries of Machinery into Taiwan in 2009 Unit: US$ million
Rank	Country	2008	2009	Change (%)
1	Japan	7,958.703	6,141.981	-22.8
2	United States	3,758.088	3,064.068	-18.5
3	China + Hong Kong	1,832.754	1,572.743	-14.2
4	Germany	1,732.029	1,220.208	-29.6
5	South Korea	641.481	533.593	-16.8
6	Italy	374.440	258.949	-30.8
7	Switzerland	321.032	245.306	-23.6
8	United Kingdom	304.437	137.921	-54.7
9	France	141.41	120.275	-14.9
	Others	1,386.644	1,914.741	38.1
	Total	18,451.018	15,209.785	-17.6
Source: Taiwan Association of Machinery Industry