Taiwan's Machinery Exports Soar 37.6% in First Four Months of 2011

Taiwan exported US$6.673 billion worth of machinery in the first four months of 2011, representing a 37.6% year-on-year growth, according to customs statistics compiled by the Taiwan Association of Machinery Industry (TAMI).

In terms of specific product category, machine tools ranked first with an export value of US$1.213 billion in the four-month period, up 59.9% from a year earlier and accounting for 18.2% of total exports. Second place went to plastic and rubber processing machinery with US$451.23 million, up 40.3%. Special-purpose machines stood in third place with US$413.37 million, up 30.6%.

Coming in fourth place were bearings, gears, and ball screws with US$391.73 million, up 53.6%. Pumps, compressors, and fans ranked fifth with US$375.02 million, up 33.5%. Other major export categories were, in descending order, valves and parts; machine-tool parts and components; papermaking and printing machinery; textile machinery; sewing machines and leather and shoe-making machines; molds and dies; and food and packaging machinery.

Mainland China was the largest market for these exports, absorbing US$2.391 billion worth of Taiwan-made machinery in the first four months of 2011, up 55.8% year-on-year and accounting for 35.8% of total exports. Second place went to the U.S. with US$935.89 million, up 18.4% and commanding 14%. Japan stood third with US$367.48 million, up 38.4% and accounting for 5.5%.

Other major export outlets, in descending order, were Thailand (US$222.64 million, up 31.1%), Vietnam (US$199.47 million, up 26.5%), India (US$198.1 million, up 54.2%), Indonesia (US$189.5 million, up 30.6%), and Germany (US$186 million, up 69%).

Smaller Import Growth
The TAMI tallies also show that Taiwan imported US$9.064 billion worth of machinery in the first four months of 2011, up 15.7% year-on-year.

In terms of import category, machinery for ICs and semiconductors ranked first with an import value of US$4.356 billion, up 11% from a year earlier and accounting for 48.1% of total imports. Second place went to special-purpose machines with US$480.35 million, down 21.6% and commanding 5.3%. Pumps, compressors, and fans stood in third place with US$426.72 million, up 15.1% and accounting for 4.7%.

Other major import categories, in descending order, were engines and parts (US$339.72 million, up 31.1%), machinery components and parts (US$317.4 million, up 46.8%), equipment for material treatment (US$294.76 million, up 44.3%), machine tools (US$280.72 million, up 69.1%), valves and parts (US$251.55 million, up 47.3%), glassware-making machinery (US$202.28 million, up 35.3%), air-conditioning and refrigeration equipment (US$169.34 million, up 16.5%), textile machinery (US$138.38 million, up 52.4%), handling equipment (US$111.89 million, down 37.3%), and plastics and rubber processing machinery (US$91.03 million, up 24.8%).

C.C. Wang, president of TAMI, said that most of the imported machinery and equipment was used by such high-tech industries as optoelectronics, communications, information technology, and semiconductors.

Wang noted that Taiwan still relies heavily on Japan, the U.S., mainland China, and Germany for its machinery imports. Japan was the largest source of the imports, supplying US$3.317 billion worth of machinery to Taiwan in the first four months of 2011, up 5.2% and accounting for 36.6% of the total. Second place went to the U.S. with US$1.876 billion, up 3.5% and commanding 20.7%. Mainland China and Hong Kong together stood in third place with US$761.38 million, up 21.2% and accounting for 8.4%.

Other major import sources, in descending order, were Germany, South Korea, Switzerland, Italy, the United Kingdom, and France.

Wang stressed that Taiwan's machinery industry has achieved a constant strengthening of its competing edge worldwide over the past few months, following the implementation of the Economic Cooperation Framework Agreement (ECFA) with mainland China. Nevertheless, Taiwan is still facing tough competition from South Korea, which has signed a free trade agreement with the European Union and is expected to formalize a similar arrangement with the U.S. next year.

TAMI predicts that Taiwan's overall machinery exports will exceed US$20 billion this year and achieve a growth of 20% to 25% over 2010.

Exports of Taiwan-made Machinery in Jan.-April 2011, by Category Unit: US$ million
Rank	Product Category	Jan.-April 2010	Jan.-April 2011	Growth (%)
1	Machine Tools	758.76	1,213.41	59.9
2	Plastic & Rubber Machinery	321.68	451.23	40.3
3	Special-purpose Machinery	316.58	413.37	30.6
4	Bearings, Gears, Ball Screws	254.98	391.73	53.6
5	Pumps, Compressors, Fans	280.99	375.02	33.5
6	Valves & Parts	264.24	347.13	31.4
7	Machine-tool Parts & Components	209.02	324.48	55.2
8	Papermaking & Printing Machinery	194.75	293.86	50.9
9	Textile Machinery	173.18	218.35	26.1
10	Woodworking Machinery	163.16	180.30	10.5
11	Sewing Machines; Leather & Shoe-making Machines	145.50	177.61	22.1
12	Molds & Dies	152.35	168.29	10.5
13	Food & Packaging Machinery	119.86	141.59	18.1
	Others	1,494.66	1,977.44	32.3
	Total	4,849.77	6,673.87	37.6
Source: Taiwan Association of Machinery Industry

Imports of Machinery into Taiwan in Jan.-April 2011, by Category Unit: US$ million
Rank	Produce Category	Jan.-April 2010	Jan.-April 2011	Growth (%)
1	Machinery for ICs, Semiconductors	3,924.13	4,356.35	11
2	Special-purpose Machinery	612.49	480.35	-21.6
3	Pumps, Fans, Compressors	370.65	426.72	15.1
4	Engines & Parts	259.04	339.72	31.1
5	Components and Parts	216.19	317.40	46.8
6	Equipment for Material Treatment	204.20	294.76	44.3
7	Machine Tools	166.00	280.72	69.1
8	Valves & Parts	170.73	251.55	47.3
9	Glassware-making Machinery	149.49	202.28	35.34
10	Air Conditioning & Refrigeration Equipment	145.33	169.34	16.5
11	Textile Machinery	90.79	138.38	52.4
12	Handling Equipment	178.48	111.89	-37.3
13	Plastic & Rubber Machinery	72.92	91.03	24.8
	Others	1,273.61	1,604.13	26
	Total	7,834.11	9,064.68	15.7
Source: Taiwan Association of Machinery Industry