Taiwan's Machinery Exports Rebound for Second Consecutive Month, But Machine Tool Industry Remains Sluggish; Exchange Rate and Tariff Concerns Loom

According to statistics from the Taiwan Association of Machinery Industry, Taiwan's machinery exports reached USD 2.597 billion in March, marking a 6.5% year-on-year increase and the second consecutive month of growth. Cumulative exports for the first quarter totaled USD 6.961 billion, up 3.3% year-on-year, indicating a gradual recovery in the overall machinery industry.

However, demand in the machine tool sector remains weak. First-quarter exports in this category totaled only USD 451 million, representing a 14.9% year-on-year decline—the steepest drop among major export items.

Industry insiders openly express concern that the U.S.'s imposition of reciprocal tariffs in early April is bound to impact future export performance, warning that the recent rebound may be short-lived. Although shipments remain stable during the current 90-day buffer period, upcoming trade negotiations with the U.S. are being closely watched.

Meanwhile, the rapid appreciation of the New Taiwan dollar against the U.S. dollar poses another major challenge for machinery and machine tool exports. Industry voices are calling on the government to maintain the exchange rate above the NT$30 to USD$1 threshold to avoid significant impacts on this year's revenue and profits.

Hiwin Technologies posted a strong performance in the first quarter, with monthly revenues showing year-on-year growth for seven consecutive months. Its Q1 consolidated revenue reached NT$5.838 billion, up 6% from the previous year—the fourth-highest on record for the period. Meanwhile, TBI Motion benefited from sustained demand in the semiconductor and automation sectors, with Q1 consolidated revenue hitting NT$587 million, a 29.5% increase year-on-year and also the fourth-highest for the same period.