Taiwan's Machinery Export Surges 24.2% in First 11 Months of 2011

Taiwan exported US$19.368 billion worth of machinery in the first 11 months of 2011, up 24.2% year-on-year, according to customs-cleared statistics compiled by the Taiwan Association of Machinery Industry (TAMI).

The machine tool category led with exports of US$3.648 billion in the first 11 months of 2011, up 36.9% from a year earlier, followed by plastics and rubber machinery with US$1.226 billion, up 14.9%. Bearings, gears and ball screws came in third with US$1.225 billion, up 45.8%. (See table below)

China and Hong Kong together led as export destination by absorbing US$6.636 billion in Taiwan-made machinery in the first 11 months of 2011, up 24.8% year-on-year and accounting for 34.3% of the total exports. The U.S. ranked second with US$2.722 billion, up 20% and commanding 14.1%. The third place went to Japan with US$1.106 billion, up 34.8% and accounting for 5.7%.

Other major export outlets, in descending order, were Thailand, Germany, Vietnam, India, Indonesia, South Korea, Malaysia, Turkey, Singapore, the Netherlands, Brazil, and Italy.

The TAMI's tallies also show that Taiwan imported US$23.498 billion of machinery in the first 11 months of 2011, down 4.4% year-on-year.

The category of machinery for ICs (integrated circuits) and semiconductors led among imports to total US$9.956 billion, down 16.6% year-on-year and accounting for 42.4% of the total imports. The second place went to the category of pumps, compressors and fans with US$1.274 billion, up 15.8% and commanding 5.4%. The category of special-purpose machinery came third with US$1.235 billion down 40.9% and accounting for 5.3%. (See table below)

TAMI president C.C. Wang says the imported machines are mainly employed by high-tech industries as optoelectronics, telecommunications, information and technology, and semiconductor.

Import-dependent

Wang says that Taiwan still relies on industrialized nations for imported machinery. Japan was the largest supplier by selling US$8.511 billion of machinery to Taiwan in the first 11 months of 2011, down 14.1% year-on-year and accounting for 36.2% of the total imports. The second place went to the U.S. with US$4.252 billion, down 20.2% and commanding 18.1%. China and Hong Kong together ranked third with US$2.393 billion, up 12.3% and accounting for 10.2%. (See table below)

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

Taiwan's machinery industry has steadily enhanced global competitiveness and the cross-Taiwan economic cooperation framework agreement (ECFA), allowing 100-odd machinery items to be shipped to China duty-free, will help domestic machinery manufacturers to expand sales to that market, says Wang.

However most of the domestic machinery manufacturers still worry about the continued rise of the local currency against the U.S. greenback, and the enactment of the FTAs (free trade agreements) between South Korea and European Union, and the U.S., which enables South Korean manufacturers of machinery to compete more favorably against archrivals in Taiwan in such markets.

Wang says that domestic machinery manufacturers will still receive steadily rising orders to be filled in the first quarter of 2012, predicting the domestic machinery industry to see exports grow 20% to 25% year-on-year to exceed US$20 billion in 2012.

Exports of Taiwan-made Machinery by Category, Jan.-Nov. 2011 Unit: US$1,000
Rank	Product Category	Jan.-Nov. 2010	Jan.-Nov. 2011	Change (%)
1	Machine Tools	2,665,995	3,648,440	36.9
2	Plastics & Rubber Machinery	1,067,940	1,226,539	14.9
3	Bearings, Gears, Ball Screws	840,910	1,225,654	45.8
4	Special-purpose Machinery	1,008,822	1,214,536	20.4
5	Pumps, Compressors, Fans	883,151	1,074,235	21.6
6	Valves & Parts	836,265	1,037,597	23.8
7	Machine-tool Parts & Components	704,852	931,270	32.1
8	Paper Making, Printing Machinery	714,102	854,180	19.6
9	Textile Machinery	526,997	564,654	7.1
10	Woodworking Machinery	515,432	498,722	-3.2
11	Sewing Machines; Leather & Shoe-making Machines	453,273	483,937	6.8
12	Molds & Dies	416,903	474,308	13.8
13	Food & Packaging Machinery	376,590	430,682	14.4
	Others	4,577,389	5,703,683	24.6
	Total	15,590,621	19,368,430	24.2
Source: Taiwan Association of Machinery Industry

Exports of Taiwan-made Machinery by Destination in Jan.-Nov. 2011 Unit: US$1,000
Rank	Nation/Area	Jan.-Nov. 2010	Jan.-Nov. 2011	Annual Change (%)
1	China + Hong Kong	5,316,051	6,636,596	24.8
2	U.S.	2,267,891	2,722,284	20
3	Japan	821,115	1,106,677	34.8
4	Thailand	544,593	657,232	20.7
5	Germany	376,562	612,205	62.6
6	Vietnam	536,562	609,466	13.6
7	India	475,288	545,969	14.9
8	Indonesia	475,288	545,969	14.9
9	S. Korea	485,362	467,744	-3.6
10	Malaysia	372,718	444,483	19.3
	Others	3,919,214	5,019,812	28.08
	Total	15,590,621	19,368,437	24.2
Source: Taiwan Association of Machinery Industry

Imports of Machinery into Taiwan by Category, Jan.-Nov. 2011 Unit: US$1,000
Rank	Produce Category	Jan.-Nov. 2010	Jan.-Nov. 2011	Annual Change (%)
1	Machinery for ICs, Semiconductors	11,934,793	9,956,661	-16.6
2	Pumps, Fans, Compressors	1,100,942	1,274,735	15.8
3	Special-purpose Machinery	2,091,152	1,235,967	-40.9
4	Engines & Parts	844,227	1,033,640	22.4
5	Machinery Components and Parts	710,159	961,073	35.3
6	Machine Tools	652,549	766,135	17.4
7	Equipment for Materials Treatment	843,603	759,308	-10
8	Valves & Parts	574,744	734,966	27.9
9	Glassware-making Machinery	536,650	611,097	13.9
10	Air Conditioning & Refrigeration Equipment	435,509	510,310	17.2
11	Textile Machinery	311,553	423,259	35.9
12	Plastics & Rubber Machinery	266,094	382,269	43.7
13	Handling Equipment	519,589	350,688	-32.5
	Others	3,768,098	4,498,634	19.4
	Total	24,589,662	23,498,742	-4.4
Source: Taiwan Association of Machinery Industry

Imports of Machinery into Taiwan by Origin in Jan.-Nov. 2011 Unit: US$1,000
Rank	Nation	Jan.-Nov. 2010	Jan.-Nov. 2011	Annual Change (%)
1	Japan	9,910,423	8,511,175	-14.1
2	U.S.	5,328,263	4,252,902	-20.2
3	China + Hong Kong	2,132,112	2,393,433	12.3
4	Germany	1,674,458	2,168,304	29.5
5	Netherlands	1,688,844	1,756,300	4
6	S. Korea	875,252	671,905	-23.2
7	Switzerland	324,908	488,932	50.5
8	Italy	305,650	450,512	47.4
9	United Kingdom	242,792	275,954	13.7
10	France	122,554	143,370	17
	Others	1,984,406	2,385,955	20.2
	Total	24,589,662	23,498,742	-4.4
Source: Taiwan Association of Machinery Industry