Machinery exports surpass NT$1tn in first 10 months
By Chen Cheng-hui / Staff reporter
Taiwan’s machinery exports in the first 10 months of this year rose 21.8 percent year-on-year to US$31.572 billion, with the full-year total likely to surpass the 2022 record of US$34.813 billion, the Taiwan Association of Machinery Industry said in a report yesterday.
In New Taiwan dollars, machinery exports from January to last month surpassed NT$1 trillion, increasing 24.4 percent to NT$1.003 trillion, the report said.
The association is optimistic about continued growth in the local machinery industry this quarter, citing robust artificial intelligence (AI) and semiconductor demand that continues to drive outbound shipments of electronic equipment as well as inspection and testing equipment.
Staff demonstrate the use of automated factory machinery during Automation Taipei Expo on Aug. 20.
Photo: EPA
However, an unfavorable NT dollar exchange rate compared with the Japanese yen and South Korean won still weighs on machine tool exports, and international geopolitics and the US government’s AI policy are two factors that could affect the industry, it said.
The association pointed out that the outcomes of the US midterm elections, with the Democratic Party controlling the Senate and the House of Representatives, have introduced uncertainty regarding a potential slowdown in AI development.
While a near-term “freeze” in AI infrastructure investment is unlikely, rising costs for land and power for data center construction, as well as lengthy review and approval, could cause US firms to be cautious about capital spending, the association said.
Whether that would affect order visibility for AI servers and semiconductor equipment warrants observation by the local machinery industry, it said.
The association’s remarks came as it reported that last month’s machinery exports reached US$3.593 billion, up 35 percent year-on-year and the 21st consecutive month of annual growth, driven mainly by growth in shipments of electronic equipment, power transmission components, and inspection and testing equipment.
Machine tool exports rebounded last month, growing 18.5 percent to US$167 million, but their shipments in the first 10 months fell 0.2 percent to US$1.659 billion from a year earlier, association data showed.
The US remained the largest buyer of Taiwanese machinery products in the first 10 months, with purchases of US$8.292 billion, accounting for 26.3 percent of exports.
China ranked second, with purchases of US$6.729 billion for a 21.3 percent share of exports.
Singapore followed with purchases of US$2.339 billion and accounting for 7.4 percent of the total, the data showed.
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