Taiwan Machinery Exports Soar 51.7% in 2010

Taiwan exported US$17.214 billion worth of machinery in 2010, representing a whopping 51.7% increase from 2009, according to customs statistics compiled by the Taiwan Association of Machinery Industry (TAMI).

In terms of machinery categories, machine tools ranked first with an export value of US$2.961 billion in 2010, up 69.9% from the previous year. Second place went to plastics and rubber processing machinery with shipments of US$1.17 billion, up 56.7%. Special-purpose machines ranked third with US$1.121 billion, up 52.1%. Fourth place was taken by pumps, compressors, and fans with US$965 million, up 45.6%; and in fifth place was bearings, ball screws, and gears with US$927.67 million, up 72.4%.

Other major export categories, in descending order, were valves and parts; paper making and printing machines; machine-tool parts and components; textile machinery (excluding sewing machines); woodworking machinery; sewing machines and leather and shoe making machines; molds and dies; and food and packaging machines.

In terms of export destination, China was the largest market, taking US$5.904 billion worth of Taiwan-made machinery in 2010, up 88.2% from 2009 and accounting for 34.3% of total exports. The U.S. ranked second with US$2.468 billion, up 32.8% and commanding 14.3%. Third place went to Japan with US$901.39 million, up 23.1% and accounting for 5.2%. Thailand ranked fifth with US$600.36 million, up 32.5%, and Vietnam was in fifth place with imports of US$583.45 million, up 32.5%.

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

mports Skyrocket 78%
TAMI's tallies also show that Taiwan imported US$27.062 billion worth of machinery in 2010, up 78% from the year before, reflecting a strong recovery in domestic investment willingness.

Machinery for integrated circuits and semiconductor was the largest import category, with a value of US$13.182 billion in 2010, up 123.5% and accounting for 48.7% of total imports. Second place went to special-purpose machinery with imports of US$2.232 billion, up 77.3% and commanding an 8.2% share. In third place was pumps, compressors, and fans with US$1.202 billion, up 63.9% and accounting for 4.4%.

Other major import categories, in descending order, were engines and parts; equipment for the treatment of materials; machinery components and parts; machine tools, valves, and parts; glassware making machinery; air conditioning and refrigeration; textile machinery; handling equipment; and plastics and rubber processing machinery.

TAMI president C.C. Wang notes Taiwan still relied on Japan, the U.S., China, and Germany to take the vast majority of its machinery imports in 2010. Japan was the island's largest import source, supplying US$10.746 billion worth of machinery to Taiwan last year, up 75.1% from the year before and accounting for 39.7% of total import value. The U.S. ranked second with US$5.832 billion, up 90.4% and commanding 21.6%. Third place went to China and Hong Kong together with US$2.328 billion, up 48% and commanding 8.6%. Other major import sources, in descending order, were Germany, South Korea, Italy, the United Kingdom, Switzerland, and France.

Wang says that the biggest problem facing local machinery exporters right now is the sharp appreciation of the New Taiwan dollar against the U.S. greenback; the local currency rose by 4.62% in 2010. Other factors affecting export performance include the volatility of cast iron and other raw materials prices.

Despite the intensification of global competitiveness, the Taiwanese machinery industry is expected to grow 15% to 20% this year. Wang notes that over 100 machinery items are on the “early-harvest” list of the Economic Cooperation Framework Agreement (ECFA) between Taiwan and China, which will help domestic machinery manufacturers to further develop the Chinese market.

Wang cautions, however, that locally made machinery will face strong competition from South Korea in the international marketplace, especially in view of the free trade agreements (FTAs) that South Korea has concluded with U.S. and the European Union, which will come into force this July.

Exports of Taiwan-made Machinery in 2010, by Product Category Unit: US$1,000
Rank	Product Category	2009	2011	Change (%)
1	Machine Tools	1,743,281	2,961,616	69.9
2	Plastics & Rubber Machinery	747,080	1,170,863	56.7
3	Special-purpose Machinery	737,521	1,121,685	52.1
4	Pumps, Compressors, Fans	662,673	965,007	45.6
5	Bearings, Gears, Ball Screws	538,187	927,670	72.4
6	Valves & Parts	669,573	925,306	38.2
7	Paper Making, Printing Machinery	452,948	790,939	74.6
8	Machine-tool Parts & Components	415,651	784,507	88.7
9	Textile Machinery	381,021	580,102	52.2
10	Woodworking Machinery	362,440	562,570	55.2
11	Sewing Machines, Leather & Shoes Making Machines	313,046	494,573	58
12	Molds & Dies	410,805	459,251	11.8
13	Food & Packaging Machinery	302,952	419,569	38.5
	Others	3,613,867	5,050,951	39.8
	Total	11,351,045	17,214,609	51.7
Source: Taiwan Association of Machinery Industry

Imports of Machinery by Taiwan in 2010, by Product Category Unit: US$1,000
Rank	Product Category	2009	2010	Change (%)
1	Machinery for ICs, Semiconductors	5,898,514	13,182,214	123.5
2	Special-purpose Machinery	1,259,296	2,232,318	77.3
3	Pumps, Fans, Compressors	733,781	1,202,392	63.9
4	Engines & Parts	758,523	929,982	22.6
5	Equipment for Treatment of Materials	667,284	916,775	37.4
6	Components and Parts	504,482	784,498	55.5
7	Machine Tools	340,805	703,618	106.5
8	Valves & Parts	415,293	635,666	53.1
9	Glassware-making Machinery	393,165	613,604	56.1
10	Air Conditioning & Refrigeration	371,231	488,275	31.5
11	Textile Machinery	192,271	351,171	82.6
12	Handling Equipment	390,230	314,956	-19.3
13	Plastics & Rubber Processing Machinery	175,503	285,425	62.6
	Others	3,106,544	4,421,803	42.3
	Total	15,206,922	27,062,697	78
Source: Taiwan Association of Machinery Industry