cens logo

Taiwan's Machinery Export/ Import Statistics in Jan. 2020

Export Machinery Saw -15.4% Export Growth Compared to Jan. 2019 Imports Grew 7.8%, machinery Products See Big Challenges Ahead in 2020

Aug 20, 2020 | By CENS

Photo courtesy of CENSPhoto courtesy of CENS
By Wang Cheng-Ching (TAMI Association Affairs Consultant)Translated by Chao Ting-Yu

1. Machinery Equipment Exports

In Jan. 2020, Taiwan saw a slump in its machinery exports. Outbound value was reported at USD$2.05 billion, a -15.4% growth compared to the growth in the same period as last year. In Taiwan dollars, export value was at TWD$61.5 billion, a -18% growth compared to the same period in 2019. This is the case for all of Taiwan's exports, showing export growth in the negatives — total exports in 2020 show -7.6% growth in U.S. dollars.

2020 total export value was at NTD$752.4 billion, a -10.0% growth compared to 2019's same period. Out of all primary exports, machinery products appeared to perform the worst. Electronic products saw a 0.1% growth, while information, communications and audio-video products reported a decrease of 5.3%. Other products also saw negative growth, chemicals at -14.9%, steel and metals at -22.5%, medical optical products at -14.1%, and electrical machinery at -13.5%.
Source: Ministry of FinanceSource: Ministry of Finance
2. Prime Markets for Taiwan's Outbound Machinery

(1) Machineries' Outbound Markets
The primary destinations of Taiwan's machinery products in January 2020 all show negative growth. The top destination is Mainland China, ranking 1st at -25.6% growth compared to last year, followed by the U.S. in second at -2.6% growth compared to last year, and Japan in third at -19.6%.
Source: Custom, BOFT, and TAMI referenced from VDMASource: Custom, BOFT, and TAMI referenced from VDMA
(2) Machine Tools' Outbound Countries
Taiwan's machine tool output value hit USD$185 million this January, a 35.1% negative growth compared to last year. The machine tools industry are currently embroiled in a more complicated international competition, as well as a Japanese Yen experiencing a massive devaluation of over approximately 30%, which would impact foreign buyers looking to put orders with Taiwan.

Among the top 16 countries and markets for Taiwan's outbound machine tools, Mainland China is ranked 1st, boasting an export value of USD$36.12 million, making up 19.5% of total exports, yet representing -51.8% compared to Jan. 2019. Followed up is the U.S. in second, with export value at USD$24.8 million, making up 13.4% of total exports, and presenting a -37.7% growth compared to Jan. 2019. India is in third, with USD$12.72 million in export value, making up 6.9% of exports and a negative growth of 39.8% compared to last year.

Other markets show continual negative growth except for these markets: Turkey with 135.8%, Indonesia with 109.4%, Malaysia with 61.2% and South Korea with 17.0%.
Source: Custom and TAMISource: Custom and TAMI
3. Taiwan Machinery Outbound Countries' Economic Growth in 2018 and 2019

(1) 2018 Economic Growth
IMF reported in 2018 that the global economic growth was at 3.1%; Taiwan reported 2.6% growth, while other countries, mainly China reported 6.6%, the U.S. 2.9%, Japan 0.8%, Germany 1.5%, South Korea 2.7%, Singapore 3.1%, India 7.3% and France at 1.7%.

(2) 2019 Forecasted Economic Growth
The IMF slashed its forecasted figures for 2019 global economic growth; Taiwan reported 2.6% growth, while Taiwan machinery's major export country China saw 6.1% growth, followed by the U.S. at 2.3%, Japan at 1.1%, the Euro zone seeing 1.6%, Germany at 0.5%, South Korea at 2.0%, Singapore at 0.7%, India at 7.5% and France at 1.3%.
Source: Ministry of Economic AffairsSource: Ministry of Economic Affairs
4. Factors Impacting Taiwan's Machinery Exports

The first impact being the exchange rate between the New Taiwan and U.S. dollar — the average U.S. Dollar to New Taiwan Dollar exchange rate in January 2020 was 30.00NT$/US$, a 2.73% increase compared to the same period last year. The Korean Won was still in a devaluating state at the time of writing, while in 2019, the New Taiwan Dollar was comparably stronger against the U.S. Dollar, leading to Taiwan's products struggling against competition on the global market.

At present, the biggest threats posed against Taiwan's machinery products in the international market comes in three forms. The first being that the Japanese Yen strongly devalued against the U.S. Dollar, making Japanese mid-to high-end machineries favorable, and enjoyed lower U.S. prices on the global market. The second threat was similar machinery being offered by South Korean suppliers. The Korean nation was buoyed by FTAs, hampering Taiwan's machineries in its primary export markets. The final threat comes from the mainland, as their firms can offer products at an even lower price compared to Taiwanese offerings.

Machinery products must find new strategies to survive amid the U.S.-China trade war, and the unsettled global trade and economic state. Development should look towards automation, customization, and equipping products with smart functions, which are all considered must-have capabilities in this ever-changing market. Also, domestic firms should have the ability to take in both urgent orders and short production orders, meaning to improve its ability to adapt and deliver. On the other hand, the government trade agencies must speed up efforts to execute better liberalized trade policies, and faster response against the U.S. Dollar. Such measures are to help domestic firms compete on a more equal stage against Japanese and Korean machinery competitors.

At the time of writing, industry experts agree on the one persistent issue hindering Taiwan's machinery exports, is the fact that the New Taiwan Dollar is too strong, compared to the currency of other competitors. They suggest adjusting the exchange rate to a middle-ground, with considerations of the appreciation and devaluation of other currencies. On the other hand, the uncertainty around the U.S.-China trade tensions, as well as the COVID-19 pandemic, are both factors that are leading to lukewarm machinery exports in 2020 for Taiwan.
Photo courtesy of CENSPhoto courtesy of CENS

Industry Reports

Photo credit: UDN/Reuters

Automotive makers look at solar energy sector for new opportunities

May 09, 2022

Hotai Group has been actively developing clean energy solutions, with its subsidiary He Jun Energy as a primary focus. The capacity of solar energy installations this year is expected to reach 50,000KW, and the profit and loss are expected to be even in the second year. With carbon rights becoming the future trend, the development of the solar energy business has become at the forefront for the a...

Photo credit: EDN

Chip shortages continue to hamper automotive imports

May 04, 2022

With chip shortages still hampering the global automotive sector, major car manufacturers expect a shortage of cars, leading to significantly decreasing imported numbers. The total sales volume in the market is currently at 35,200 units, an annual decrease of 7%. The TOYOTA and LEXUS brands under Hotai Motors have reached 12,500 units, the MITSUBISHI and CMC brands of China Motor Corporation ...

Photo credit: UDN/AP

Delayed container ship production could worsen shipping in 2023

May 03, 2022

The new regulations on shipping carbon emissions are set to come into effect next year, and with the number of global container ships over 20 years old will reach 8.2%, experts warn there will be a wave of elimination of old ships starting as early as this year. However, the supply and production of these ships have been hampered by China's strict zero-COVID policy and the Russian-Ukrainian wa...

Industry In-Focus

Photo credit: UDN

Machine tool orders fall, signal concerns

May 17, 2022

Taiwan Machine Tool and Accessory Builders' Association Hsu Wen-hsien said on Monday that prices for international steel, nickel, copper, and other raw materials have soared, coupled with the uncertainty of the Russian-Ukrainian war, domestic machine tool factories' have seen a recent decrease of orders around 20%. The association has decided to adjust the export forecast of machine tools this ye...

Auto parts suppliers brace for order surge post lockdowns</h2>

Auto parts suppliers brace for order surge post lockdowns

May 16, 2022

Auto parts and components were affected by the COVID-prompted lockdowns in various Chinese cities, leading to expected losses in revenue and profit in the first quarter. However, after May, various regions have gradually reopened and resumed work, and auto factories have stepped up the pace of delivering orders. Laster Tech Group and Yingli-KY are among the suppliers optimistic about the performa...

EV-related revenue to bolster new growth records: Chroma Corp.</h2>

EV-related revenue to bolster new growth records: Chroma Corp.

Apr 29, 2022

Measuring instrument maker Chroma Corporation reported significant growth due to the company's increased investment in electric vehicle applications at its earnings call and estimated that combined revenue trends for turnkey applications could remake company history in the future. Chroma Corp. said that 54% of Q1 revenue came from measuring instruments and automated inspection equipment, follo...

Supplier News

Young Shang thrives beyond obstacles</h2>

Young Shang thrives beyond obstacles

Apr 28, 2022

OVERVIEW The spread of the novel coronavirus (SARS-CoV-2) has made a deep impact across all sectors. As health authorities and scientists around the world work towards identifying solutions to bring the situation under control, demand for Food Packaging solution has increased dramatically as consumers attempted to stay away from public gatherings. This has led to let food producers requiring m...


Tair Wang's zinc die-casting and CNC OEM products. (Photo courtesy of Tair Wang)

Tair Wang offers high-quality zinc die casting products for OEM and low-volume high-mix needs

Apr 15, 2022

Founded in 1978, Tair Wang Enterprise Co., Ltd. is a zinc die-casting manufacturer with ISO 9001 quality certifications. With an excellent reputation among domestic and global buyers as a professional OEM manufacturer, Tair Wang has actively expanded its businesses abroad in the past decade by providing high-quality products and services for its clients. General Manager Lawrence Lee said that...


ALTA-PRO CO., LTD. </h2><p class='subtitle'> Air spray guns, air paint guns, airless spray gun and related accessories</p>


Air spray guns, air paint guns, airless spray gun and related accessories

Apr 06, 2022

After over 20 years of devotion to developing and making air spray guns and related accessories, ALTA-PRO Co., Ltd. is well recognized as a globally prestigious supplier in Taiwan, offering HP series spray guns, HVLP (high volume low pressure) spray guns, LVLP (low volume low pressure) spray guns, airless spray guns, automatic guns, dry blow guns & air brushes, and related accessories as nozzles,...


Insiders' Views

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.

Mar 04, 2021

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...


OmniEyes CEO and Co-Founder Chun-Ting Chou. (Photo courtesy of OmniEyes)

OmniEyes' AI Technology Paves the Way for Traditional Industries' Digital Transition

Dec 15, 2020

The COVID-19 pandemic has accelerated the industries' timeline for implementing digital transformation. However, the how's and what's of applying new technologies and improving the added value to existing products and services can be daunting. Three professors from the National Taiwan University College of Electrical Engineering and Computer Science founded the startup company "OmniEyes," basi...

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...

Exhibition Highlights

 INTERMACH & SUBCON Thailand 2022 Prepared to promote business partnerships and to promote Thailand to be an industrial center towards sustainable development</h2>

INTERMACH & SUBCON Thailand 2022 Prepared to promote business partnerships and to promote Thailand to be an industrial center towards sustainable development

May 19, 2022

After the opening of the Intermach-Subcon Thailand 2022 Machinery Technology and Subcontracting Industry Exhibition For the procurement of leading ASEAN parts held at the Bangkok International Trade and Exhibition Centre (BITEC) today (18 May 2022), Ms. Duangjai Asawachintachit,, Secretary General of the Thailand Board of Investment (BOI), stated that the board recognises the importance of develo...

Photo credit: Messe Frankfurt

Messe Frankfurt reschedules CAPAS 2022 and Auto Maintenance & Repair Expo 2022

May 06, 2022

In view of the evolving pandemic situation in China, the Government has escalated a number of COVID-19 prevention and control measures. To align with these efforts, Messe Frankfurt is rescheduling two of its Mobility & Logistics fairs in the country. CAPAS Chengdu will move to 18 – 20 August 2022, instead of the original timeslot (19 – 21 May 2022). In addition, the Auto Maintenance and Repair...

2022 Taipei AMPA four-day event attracted many buyers and attendees to the in-person show grounds. Photo credit: TAITRA

Taipei AMPA an astounding success – Taiwan is Back in Business!

Apr 27, 2022

The 4-day 2022 Taipei AMPA and Autotronics Taipei physical show closed out on a high note, with visitors coming from the automotive industry, auto electronics department, as well as other branches in connection with the automobile market. Nearly 600 exhibitors came to the physical show, and over 1300 booths were occupied. Combined with nearly 190 exhibitors on the online show AMPA DigitalGo, t...