cens logo

Taiwan Sees No Relief in Export Order Downtrend

Jul 27, 2015 | By Steve Chuang

Taiwan’s export orders dropped year-on-year for the fifth consecutive month in June (photo courtesy of UDN.com).Taiwan’s export orders dropped year-on-year for the fifth consecutive month in June (photo courtesy of UDN.com).
Affected by a variety of factors, including fallout from the Greek debt crisis, slowing growth in China coupled with its recent stock market slump, steady displacement of Taiwanese suppliers by mainland Chinese counterparts, sagging commodity prices that have impacted the Canadian and Australian economies, tepid market demand, relatively high NT-dollar-to-greenback ratio compared to Japanese yen and Korean won, and slower-than-expected inventory clearance among global buyers, Taiwan has seen its export orders continuously drop over the past few months this year, with such downtrend likely to continue. 

According to the latest report by the Ministry of Economic Affairs (MOEA), Taiwan's export orders received throughout June totaled US$35.58 billion for a 2.2 percent increase over May, but still represented a 5.8 percent drop from a year ago. Since February, overall export orders have remained on a downtrend for five consecutive months.

On a yearly basis, the MOEA notes that of the total, only export orders for ICT (information and communication technology)-based products showed positive growth of 1.8 percent, mostly thanks to increasing assembly orders placed by global branded vendors of wearable devices.

On another front, dampened by anemic market demand for computers and smartphones, along with downstream customers spending longer time than expected on inventory clearance, the electronic sector saw export orders dive 6.7 percent year-on-year (YoY) in June, reports the MOEA.

Noteworthy is that export orders landed by the local base metal industry have continuously declined for eight months in a row since last November, due mainly to a glut of China-made steels and a new round of underselling competition among Asian steelmakers, which have severely undermined both market demand and prices, indicates the MOEA.

Also, the precision instrument sector witnessed export orders plunge by 15.9 percent month-on-month in value, to which the MOEA attributes  weak market demand for display panels along with a lingering oversupply situation.

For the first half of this year, the MOEA reports that Taiwan's cumulative export orders reached US$217.05 billion, down 1.5 percent from the same period of last year, with those received during Q2 dropping 5.2 percent YoY in value, the steepest drop since the global financial tsunami in 2009.

Currency Fluctuations
In addition to macroeconomic reasons, the MOEA also ascribes the lackluster export order for Taiwan in June to global currency fluctuations.

An MOEA official says Taiwan's export orders from Europe showed a double-digit yearly drop in June, compared to only a 1.7 percent decline seen in May, primarily because the Greek debt crisis has dragged down the euro-to-U.S.-dollar rate. In June, the euro-to-greenback rate dropped 17 percent than a year ago, which drove European buyers away from placing orders with Taiwanese suppliers, who generally quote prices in U.S. dollar rather than euro.

The devaluing euro has also led to slack consumer demand across the euro bloc, including that for PCs and smartphones. With ATM withdrawals and capital controls still in place in Greece and the Greek debt crisis still far from over despite emergency aid from the International Monetary Fund and European Central Bank, the MOEA says it is uncertain  whether market demand there will rebound in the second half of this year.

Amid strong U.S. dollar, the MOEA notes that Taiwan's export orders from not just Europe, but such emerging countries as Brazil and Russia have all shrunk so far this year. Orders from the ASEAN (Association of Southeast Asian Nations) bloc have declined as well, mostly due to lower crude oil prices, says the  MOEA.

Meanwhile, export orders from both China (including Hong Kong) and Japan also dropped drastically in June compared to last June, but for different reasons including China's ongoing plan to localize its supply chain to reduce dependence on imports, especially ICs and other high-tech, high-precision instrument, and the withdrawal of Japanese branded vendors from the global market for LCD TVs.

The U.S. remained the biggest buyer of Taiwan-made products, orders of which grew 6.2 percent YoY in June in value to represent the only positive growth among those from Taiwan's other export markets

MOEA officials concede that export orders received in July are likely to keep declining on a yearly basis, and the total for the whole year may show a negative growth the first time since the global financial meltdown in 2009.

To revive export growth, the MOEA has decided to offer necessary support to assist local enterprises with strong growth potential, especially those from such mainstay sectors as semiconductor, auto parts and functional textile, to further sharpen their competitiveness and help explore overseas markets.

In addition, the Industrial Development Bureau has also mapped out a strategic project designed to adjust Taiwan's export structure and enhance added-value, mainly through helping local companies develop and export total solutions, to replicate industrial clusters overseas and strengthen growth momentum of inbound investment.

Industry Reports

K, the leading global plastic and rubber trade fair (Photo courtesy of Messe Düsseldorf/ctillmann)

K, The World's Leading Trade Fair for Plastic and Rubber Industry

Jul 24, 2020

2019 K Show, the leading global trade fair for the plastics and rubber industry, had been held in Düsseldorf on 16-23 October, 2019. There were 3,330 exhibitors from 63 nations proved impressively: plastics continue to be an innovative, indispensable material. But they also unanimously underscored the necessity of having operational circular economies along the complete material chain and to this...

Photo courtesy of CENS

Digital Healthcare & Technology at the Heart of Las Vegas CES 2020

Jul 14, 2020

■ Hubert Chih The number of healthcare exhibitors at the 2020 CES in Las Vegas increased significantly by 23% from 2019. According to the analysis and report by the CES organizer, digital healthcare and technology were the focus in the healthcare exhibition. In addition to the continued expansion of healthcare coverage, the reduction of healthcare costs, the improvement of effectiveness and th...

The Taiwan Hardware Show sees global buyer attendance. (Photo provided by Kaigo Co.)

Taiwan's Hand Tools Seeking Opportunities Amid Global Crisis

Jul 10, 2020

Due to the COVID-19 pandemic sweeping the globe, most of the international hardware shows slated for this year has been moved to 2021. However, as Taiwan’s efforts combating the new virus has proven to be successful, the 2020 Taiwan Hardware Show (THS) will continue as scheduled, beginning on Oct. 13 and ending on the 15th at the Taichung International Exhibition Center, thus becoming the only sh...

Industry In-Focus

SINOSTEEL Corporation: Rising price in Steel</h2>

SINOSTEEL Corporation: Rising price in Steel

Jun 05, 2020

Brazil’s new crown pneumonia epidemic has rapidly increased. Brazil’s Vale, the world’s largest iron ore producer, is facing an out-of-control impact. The market is worried that iron ore production and sales will be affected. new highs. Experts from Sinosteel (2002) evaluated that steel prices will rise steadily under the effect of rising costs, with a promising outlook. According to a legal p...

Apple Invests Millions in LED Plant in Taiwan</h2>

Apple Invests Millions in LED Plant in Taiwan

Jun 01, 2020

Apple is considering to invest over US$330 million in a factory in northern Taiwan to manufacture both LED and micro-LED displays for its iPhones, iPads, MacBooks, and other new devices. Apple is teaming up on the new factory with Epistar, Taiwan's top LED producer, and Taiwanese LCD panel maker, AU Optronics. The plant will be located in the Longtan branch of the Hsinchu Science Park and Appl...

Taiwan Machinery Was Applauded in COVID-19</h2>

Taiwan Machinery Was Applauded in COVID-19

May 18, 2020

What the epidemic showed was the amazing flexibility of Taiwan's machine tool industry. Taiwan, which has allowed the semiconductor industry to specialize in the past, has finally realized that these machine tool industries with amazing strength are the "invisible champions" of Taiwan's economy. In early February, three companies -- Habor Precision, Tongtai Machine & Tool and Taiwan Takisawa -...

Supplier News

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry</h2>

With professional technics and rigorous quality control, Kung Hsing gains high-reputation in the industry

Jul 23, 2020

Kung Hsing Plastic Machinery Co., LTD., founded in 1972, is the brainchild of the company President Tsai Chin-lien’s over 48 years of experience in designing and producing extrusion machines. The firm stood by its belief to uphold integrity and offer the best quality and services, eventually becoming a leader in the extrusion machinery industry in Taiwan. Kung Hsing currently has two factories; t...




Jul 21, 2020

■ Tseng Lung-nan Intype Enterprise has built up 55 years of experience in producing extruders, though the firm is placing greater consideration on rapidly degrading of the global environment. In the past 20 years, Intype has become an active contributor to building up a global ecosystem, enabling them to reuse the products manufactured by their own extruders and avoid further waste. The firm t...


YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility </h2>

YFCM Carbon Fiber Driveshaft Lauded in the field of Modified Cars for its Flexibility

Jul 14, 2020

■Hsiao Yung-le Yifeng Technology Co., Ltd. specializes in the research and development of carbon fiber transmission shafts and the manufacture of carbon fiber related products.The carbon fiber material has the characteristics of lightweight, impact resistance, fatigue resistance, and corrosion, and chemical stability is quite high. The product type is increasing in the extensive range with an ...


Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...

Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...

Exhibition Highlights

Koelnmesse (Beijing) Co., Ltd.

Announcement on Postponement of China International Hardware Show 2020 (CIHS 2020)

Jul 10, 2020

In view of the continuous spreading of COVID-19 all over the world and the latest epidemic prevention requirements of China and the government of Shanghai, in order to guarantee the health and safety of exhibitors, purchasers and professional visitors, China National Hardware Association and Koelnmesse have prudently decided to postpone China International Hardware Show 2020 (CIHS 2020) from Augu...

Automechanika Shanghai 2020 creates channels for cross-sector collaboration</h2>

Automechanika Shanghai 2020 creates channels for cross-sector collaboration

Jun 16, 2020

This year, Automechanika Shanghai continues to serve the entire automotive value chain by offering opportunities for information exchange, marketing, trade and education. Both vertically and horizontally, from OE, vehicle production to the aftermarket, it incorporates all elements of manufacturing, supply networks, services, new business models and information technology. Companies across the...

Messe Frankfurt (Shanghai) Co Ltd

CAPAS defers to 2021

Apr 20, 2020

Following the Chinese Government’s initiatives to prevent and control the COVID-19 outbreak, the organisers of the Chengdu International Trade Fair for Automotive Parts and Aftermarket Services (CAPAS) have announced the defer of the show’s 2020 edition. The fair, originally scheduled from 21 to 23 May 2020, will now be held from 20 to 22 May 2021. In China, the State Council issued an announc...