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Taiwan's Machinery Sales Grow 22.6% Year-on-Year in 2011

2012/04/05 | By Ben Shen

Taiwan exported US$21.11 billion of machinery in 2011, up 22.6% year-on-year, according to customs-cleared statistics compiled by the Taiwan Association of Machinery Industry (TAMI). Despite double-digit growth in exports, many machinery manufacturers worry about losing ground to Korean counterparts in the wake of the implementation of the FTAs (free trade agreements) between South Korea and European Union and the U.S., as well as the rising NT-dollar against the greenback that undermine exporters' competitiveness.

The category of machine tools led in export with value reaching US$4 billion, up 35.1% year-on-year; followed by plastic and rubber processing machinery at US$1.339 billion, up 14.4%; then bearings, gears and ball screws at US$1.33 billion, up 43.7%. (See table below)

China and Hong Kong were the largest export outlet by absorbing US$7.151 billion of Taiwan-made machinery in 2011, up 21.1% year-on-year and accounting for 33.9% of the total exports. The second place went to the U.S. with US$3.002 billion, up 21.6% and commanding 14.2%. Japan ranked third with US$1.203 billion, up 33.7% and accounting for 5.7%. (See table below)

The TAMI's tallies also show Taiwan imported US$25.46 billion of machinery in 2011, down 5.9% year-on-year.

Machinery for ICs and semiconductors led in imports with value reaching US$10.748 billion in 2011, down 18.5% and accounting for 42.2% of the total imports; followed by pumps, fans and compressors at US$1.37 billion, up 14% and commanding 5.4%; then special-purpose machinery at US$1.337 billion, down 40.1% and accounting for 5.3%. (See table below)

Japan was the island's largest supplier by selling US$9.248 billion of machinery to Taiwan in 2011, down 14% year-on-year and accounting for 36.3% of the total imports; followed by the U.S. at US$4.617 billion, down 20.8% and commanding 18.1%; then China and Hong Kong at US$2.629 billion, up 12.9% and accounting for 10.3%.

TAMI president C.C. Wang notes Taiwan's machinery manufacturers have improved competitiveness globally due to supply of high-quality products with high performance-to-price ratio; while the cross-Taiwan Strait economic cooperation framework agreement (ECFA) qualify over 100 Taiwan-made machines for low duties when sold to China.

Based on the projection that Taiwan's overall economy will grow 3.8%, the TAMI forecasts Taiwan's machinery industry to achieve export growth of 8% to 10% to reach US$23 billion in 2012.

Exports of Taiwan-made Machinery by Category in 2011

Unit: US$ million

Rank

Product Category

2010

2011

Annual Change (%)

1

Machine Tools

2,961

4,000

35.1

2

Plastics & Rubber Machinery

1,170

1,339

14.4

3

Bearings, Gears, Ball Screws

927

1,333

43.7

4

Special-purpose Machinery

1,121

1,308

16.7

5

Pumps, Compressors, Fans

964

1,166

20.9

6

Valves & Parts

925

1,131

22.2

7

Machine-tool Parts & Components

784

1,004

28

8

Paper Making, Printing Machinery

790

921

16.6

9

Textile Machinery

580

615

6

10

Woodworking Machinery

562

540

-3.9

11

Sewing Machines; Leather & Shoe-making Machines

494

521

5.4

12

Molds & Dies

459

520

13.3

13

Food & Packaging Machinery

 419

 471

12.3

 

Others

5,049

6,236

23.5

 

Total

17,212

21,110

22.6

Source: Taiwan Association of Machinery Industry

Exports of Taiwan-made Machine Tools in 2011 by Destination
Unit: US$1,000

Rank

Nations

2010

2011

Annual Change (%)

1

China + Hong Kong

5,904

7,151

21.1

2

United States

2,468

3,002

21.6

3

Japan

900

1,203

33.7

4

Thailand

600

734

22.3

5

Germany Turkey Italy

422

668

58.1

6

Vietnam Netherlands

583

666

14.2

7

Indonesia

521

601

15.3

8

India

503

583

15.9

9

S. Korea

521

501

-3.9

10

Malaysia

416

482

15.8

 

Others

4,374

5,519

26.17

 

Total

17,212

21,110

22.6

Source: Taiwan Machine Tool Foundation

Imports of Machinery into Taiwan by Category in 2011
Unit: US$ million

Rank

Produce Category

2010

2011

Annual Change (%)

1

Machinery for ICs, Semiconductors

13,192

10,748

-18.5

2

Pumps, Fans, Compressors

1,202

1,370

14

3

Special-purpose Machinery

2,232

 1,337

-40.1

4

Engines & Parts

929

 1,165

25.3

5

Components and Parts

784

1,044

33.1

6

Machine Tools

703

828

17.8

7

Equipment for Materials Treatment

915

809

-11.7

8

Valves & Parts

635

793

24.8

9

Glassware-making Machinery

613

637

3.9

10

Air Conditioning & Refrigeration Equipment

488

546

11.8

11

Textile Machinery

351

475

35.5

12

Plastics & Rubber Machinery

285

404

41.8

13

Handling Equipment

552

371

-32.7

 

Others

4,183

4,936,058

18

 

Total

27,071

25,469

-5.9

Source: Taiwan Association of Machinery Industry

Taiwan's Import Sources of Machine Tools in 2011 by Origin
Unit: US$1,000

Rank

Nation

2010

2011

Annual Change (%)

1

Japan

10,756

9,248

-14

2

Untied States

5,832

4,617

-20.8

3

China + Hong Kong

2,328

2,629

12.9

4

Germany

1,898

2,311

21.8

5

Netherlands

2,048

1,901

-7.2

6

South Korea

953

726

-23.8

7

Switzerland

353

528

49.5

8

Italy

331

482

45.4

9

United Kingdom

264

296

12.1

10

France

137

159

15.9

 

Others

2,167

2,568

18.5

Total

27,071

25,469

-5.9

Source: Taiwan Machine Tool Foundation