Taiwan's Machinery Exports Jump 53.2% in First 10 Months of 2010

Taiwan exported US$13.978 billion of machinery in the first 10 months of 2010, representing a 53.2% year-on-year growth, according to customs-cleared statistics compiled by the Taiwan Association of Machinery Industry (TAMI). Impacted by the global meltdown, Taiwan's machinery sector saw exports decline for 13 straight months starting November 2008, which reversed in December 2009 when the exports grew 8.2% year-on-year to reach US$1.184 billion.

The category of machine tools led in exports totaling US$2.367 billion in the first 10 months of 2010, up 68.4% from a year earlier. Plastics and rubber processing machinery followed in second with US$956.95 million, up 59.1%. Special-purpose machines came in third place with US$915.88 million, up 55.9%. (See table below)

Other major exports, in descending order, were bearings, gears and ball screws; machine-tool parts and components; papermaking and printing machines; textile machinery; woodworking machinery; sewing machines, leather and shoe-making machines; molds and dies; and food and packaging machines.

China Leads as Buyer
China led as the biggest buyer of Taiwan-made machines by absorbing US$4.746 billion of products in the first 10 months of 2010, surging 92% from a year earlier and accounting for 34% of the total exports. The U.S. came in second with US$2.046 billion, up 31.1% and commanding 14.6%. Japan ranked third with US$735.23 million, up 20.1% and accounting for 5.3%.

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

The TAMI's tallies also show that Taiwan imported US$21.921 billion of machinery in the first 10 months of 2010, for an annual increase of 87.9%.

TAMI president C.C. Wang noted that Taiwan's machinery imports began to decline in November 2008, then rebounded in October 2009 with a 49% year-on-year growth.

The category of machinery for ICs and semiconductor led as imports totaling US$10.584 billion in the first 10 months of 2010, up 151.2% from a year earlier and commanding 48.3% of the total imports. Special-purpose machines were second with US$1.917 billion, up 88.1% and accounting for 8.7%. Pumps, compressors and fans stood at the third place with US$995.34 million, up 68.8% and commanding 4.5%.

Other major imports included, in descending order, engines and parts; equipment for material treatment; components and parts; machine tools; valves and parts; machinery for glassware; air conditioning and refrigerators; textile machinery; handling equipment; and plastics and rubber processing machinery.

Japan Leads as Supplier
Wang said that Taiwan mainly relied on Japan, the U.S., China and Germany for machinery imports. Japan was the largest supplier by selling US$8.867 billion of machinery to Taiwan in the first 10 months of 2010, up 85.3% year-on-year and accounting for 40.5% of the total imports. The U.S. was second with US$4.739 billion, up 108.5% and commanding 21.6%. China stood at the third place with US$1.912 billion, up 55.1% and accounting for 8.7%.

Other major suppliers, in descending order, were Germany, South Korea, Switzerland, Italy, England and France.

Wang said that Taiwan's machinery industry continues to hone its global competitiveness, especially after the signing of the cross-Taiwan Strait economic cooperation framework agreement (ECFA), which contains 100-odd machinery items in the fast-track gainer list allowing duty-free export to China, which will definitely help Taiwan's machinery manufacturers tap the massive market.

Wang predicts Taiwan's machinery industry will see a 10% to 15% year-on-year export growth in 2011, which may be adulterated by some domestic manufacturers' worries of being stiffly challenged by South Korean rivals due to the free trade agreement between South Korea, Europe and the U.S. to be effective July 2011; while the steadily rising NT-dollar against the greenback may also further compromise the competitiveness of Taiwan-made machinery globally. And the recent floods in Queensland may also complicate the picture. Australia reportedly supplies two-thirds of the global coking coal for steel making, so the floods may disrupt steel supply to push prices up for makers of machinery.

Exports of Taiwan-made Machinery in Jan.-Oct. 2010 by Category Unit: US$ million
Rank	Product Category	Jan.-Oct. 2009	Jan.-Oct. 2010	Annual Change (%)
1	Machine Tools	1,405	2,367	68.4
2	Plastics & Rubber Machinery	601	956	59.1
3	Special-purpose Machinery	587	915	55.9
4	Pumps, Compressors, Fans	537	798	48.4
5	Valves & Parts	544	756	38.9
6	Bearings, Gears, Ball Screws	420	748	78.2
7	Machine-tool Parts & Components	316	627	97.9
8	Paper Making, Printing Machinery	350	619	76.7
9	Textile Machinery	297	472	58.7
10	Woodworking Machinery	294	468	59.3
11	Sewing Machines; Leather & Shoe-making Machines	248	412	65.8
12	Molds & Dies	339	372	9.9
13	Food & Packaging Machinery	245	339	38.3
	Others	2,936	4,122	40.4
	Total	9,126	13,978	53.2
Source: Taiwan Association of Machinery Industry

Imports of Machinery into Taiwan in Jan.-Oct. 2010 by Category Unit: US$ million
Rank	Produce Category	Jan.-Oct. 2009	Jan.-Oct. 2010	Annual Change (%)
1	Machinery for ICs, Semiconductors	4,212	10,584	151.2
2	Special-purpose Machinery	1,019	1,917	88.1
3	Pumps, Fans, Compressors	589	995	68.8
4	Engines & Parts	606	756	24.6
5	Equipment for Materials Treatment	555	734	32.4
6	Components and Parts	395	632	59.8
7	Machine Tools	277	582	110.2
8	Valves & Parts	325	518	59.4
9	Glassware-making Machinery	260	422	62.2
10	Air Conditioning & Refrigeration Equipment	303	388	27.9
11	Textile Machinery	136	271	99.1
12	Handling Equipment	307	252	-17.9
13	Plastics & Rubber Machinery	141	243	72.3
	Others	2,534	3,620	42.9
	Total	11,666	21,921	87.9
Source: Taiwan Association of Machinery Industry