The output value of Taiwan’s machinery industry is expected to rise about 15 percent this year from last year on the back of strong demand, the Taiwan Machinery Industry Association (台灣) said yesterday.機械公會).
Association President Larry Wei (魏燦文) told reporters that global demand is expected to continue to rise this year as high-end precision and smart manufacturing increase pressure on manufacturers to modernize.
The industry’s output value this year is expected to be NT$1.5 trillion ($53.80 billion), up NT$200 billion, or about 15%, from the year previous, Wei said.
Photo: Ritchie B. Tongo, EPA-EFE
Machinery exports are expected to rise 15 percent year-on-year this year, he said.
Last year, the output value of Taiwan’s machinery sector reached NT$1.3 trillion, while exports rose 27% year-on-year to a new high of $33.14 billion.
The industry’s exports have grown steadily over the past 17 months.
The trend of smart manufacturing means smart machines are gradually replacing traditional machines in global manufacturing, which will boost the local industry, Wei said.
The COVID-19 pandemic has caused repercussions on the global supply chain, as the importance of Chinese manufacturing has been reduced over the past two years, creating more business opportunities for Taiwanese manufacturers and increasing the local production, he said.
Taiwanese machinery suppliers have set their sights on the Turkish market, which has been a stepping stone for exporters to reach markets in the Middle East and Europe, he said.
Hopefully tensions between Russia and Ukraine will ease as the geopolitical chaos will affect demand in the global machinery market, Wei said.
Alex Ko (柯拔希), head of a new business alliance dedicated to smart manufacturing in Taiwan, said he was optimistic about the local industry, predicting output to exceed NT$2 trillion in 2025.
The alliance, which was formed on Monday, is made up of 30 machine tool makers, including Victor Taichung Machinery Works Co (台中精機), Taiwan Takisawa Technology Co (台灣瀧澤) and Tongtai Machine and Tool Co (東台精機).
The output value of Taiwanese machine tools is expected to reach NT$108.2 billion this year, Wei said.
Separately, the TIMTOS TMTS trade exhibition organized by the Taipei International Machine Tool Show and the Taiwan International Machine Tool Show opened on Monday in Halls 1 and 2 of the Taipei Nangang Exhibition Center. .
Organizers said the event will promote Taiwan’s strength in machinery production.
The exhibition ends on Saturday.
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