Taiwan's Machinery Industry Shows Steady Rebound With Four Consecutive Months of Export Growth, Reinforcing Its Role in Global Supply Chains

Despite ongoing global supply chain uncertainties, Taiwan’s machinery industry is demonstrating solid resilience and a gradual recovery. According to the latest statistics released by the Taiwan Association of Machinery Industry (TAMI), the export value of Taiwan’s machinery equipment reached US$2.779 billion in May 2024, marking a year-on-year growth of 8.9% and continuing four consecutive months of positive growth. This signals improving global demand and highlights Taiwan’s strong presence in the international machinery manufacturing and export sectors.

In the first five months of 2024, Taiwan’s cumulative machinery exports reached US$12.19 billion, a 5.7% increase compared to the same period last year. Among the major product categories, inspection and measurement equipment led with US$2.14 billion in exports, up 14.7% and accounting for 17.6% of total exports. This was followed by electronics-related machinery at US$1.971 billion and machine tools at US$819 million. While machine tools experienced a 7.1% annual decline, the sector remains a key contributor to Taiwan’s export portfolio.

The United States and China continue to be Taiwan’s top two export markets. From January to May 2024, exports to the U.S. totaled US$3.2 billion, up 4.7%, while exports to China rose modestly by 2.4% to US$2.82 billion. In particular, the U.S. market saw a notable 19% surge in May, driven by a short-term pull-in effect as buyers sought to avoid potential reciprocal tariffs that were postponed for 90 days. This surge reflects Taiwan’s machinery sector’s readiness and trustworthiness in responding to global market fluctuations.

However, while export figures remain strong, businesses are facing mounting challenges due to the sharp appreciation of the New Taiwan Dollar (NTD). TAMI notes that from early April to June 9, the NTD appreciated 9.8% against the U.S. dollar—significantly more than neighboring currencies like the Japanese yen (3.4%) and the Chinese yuan (1.1%). As a result, corporate profits have been squeezed. Although May exports grew 8.9% in U.S. dollars, the growth shrank to 4.0% when measured in NTD, revealing a nearly 5% discrepancy due to exchange rate fluctuations.

TAMI Chairman Dali Chuang emphasized that Taiwan’s machinery industry, deeply rooted in local manufacturing ecosystems, possesses flexible production capabilities and a comprehensive industrial cluster. These advantages make Taiwanese suppliers ideal partners for international buyers navigating a volatile global economy. He urged the Taiwanese government to consider exchange rate stabilization measures to sustain export competitiveness and avoid further pressure on profitability and order visibility.

Taiwanese machinery products have long been recognized for their high-quality manufacturing, short lead times, and integrated supply chain capabilities—earning solid trust in markets across Europe, the U.S., and Asia. In line with trends toward smart manufacturing, green production, and ESG compliance, local companies are adopting automation, digitalization, and carbon footprint tracking technologies to boost efficiency and meet global buyers' sustainability expectations.

For international buyers, Taiwan is not only a major machinery exporter but also a reliable strategic partner in global supply chains. Looking ahead, Taiwan’s machinery sector is committed to continuously upgrading its technologies and expanding its global footprint to create more competitive and sustainable value chains in partnership with clients worldwide.