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Machinery boasts double-digit growth in first half of 2021

2021/07/09 | By EDN

In a report released on Thursday, the Taiwan Association of Machinery Industry (TAMI) announced the export value of machinery and equipment in the first half of the year was valued at US$15.758 billion (TWD$444.508 billion), an annual increase of 27.1% in USD, and 19.5% in Taiwan dollars, both marking a record high for the same period in history. Exports of machinery and equipment have experienced double-digit growth for six consecutive months.

Wei Tsan-wen, chairman of the Taiwan Machinery Association, said that the export value of machinery in June reached US$2.643 billion, an increase of 27.7% over the same period last year, and it was NT$73.30 billion, an increase of 18.7% over the same period last year. This is also the tenth consecutive year since September last year. The month showed an upward trend.

Taiwan's machinery industry is currently exporting vigorously, but observations have found that it has been affected by the continued appreciation of the New Taiwan dollar. In particular, the New Taiwan dollar once touched a new high of 27.0 during the session in June, resulting in a growth of only 18.7% in June's exports in New Taiwan dollars, compared with the US dollar. Calculated growth of 27.7%, the difference between the two is as high as 9%, a record high difference.

Wei warned that this means that the actual income of the domestic machinery industry has not increased significantly due to strong exports, which is not conducive to the long-term development of the machinery industry.

In the first half of this year, the top three machinery exports in the first half of this year were electronic equipment USD$2.365 billion, an increase of 45.3% over the same period last year; inspection and measurement equipment was USD$2.14 billion, an increase of 24.8% over the same period last year; machine tools were USD$1.272 billion, an increase of 45.3% over the same period last year.

The top three machinery exporters in the first half of the year were: Mainland China US$5.154 billion, accounting for 32.7%, an annual increase of 40.8%; the United States US$3.294 billion, accounting for 20.9%, an annual increase of 21.7%; Japan, US$1.006 billion, accounting for Compared with 6.4%, an annual increase of 10.3%. In addition, exports from South Korea, Singapore, the Netherlands, Germany, Hong Kong, and India also have double-digit growth.

Wei said that although Taiwan's machinery industry is actively receiving orders and exports, it faces bottlenecks such as shortage of raw materials, price increases, and prolonged waiting time. He urged the government not only strictly investigate whether there is hoarding, but also consider bringing in the oil price model, that the steel prices at the retail end are unified prices, and introduce coordinated and priority of raw materials for domestic machinery factories.