Machinery exports rising: industry group

UPWARD TREND: Demand for electronics in support of the AI boom drove growing export numbers, showing an increase of almost 30 percent from this time last year

• By Chen Cheng-hui / Staff reporter

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Taiwan’s machinery exports rose again last month, driven mainly by shipments of electronic equipment amid strong demand for artificial intelligence (AI) applications and semiconductors, the Taiwan Association of Machinery Industry said yesterday.

Outbound shipments of machinery products increased 29.9 percent from a year earlier to US$3.437 billion, the 20th consecutive monthly increase, the association said in a report.

Last month’s strong performance led third-quarter machinery exports to grow 22.14 percent year-on-year to US$10.184 billion, data from the association showed. In the first three quarters, overall exports reached US$27.98 billion, up 20.3 percent from a year earlier, the data showed.

A visitor observes a robotic arm in action during the Taiwan Automation Intelligence and Robot show in Taipei on Aug. 19.

Photo: EPA

Driven by strong orders the industry has received, shipments in the fourth quarter are expected to continue showing positive growth, the association said. In addition, full-year exports and output value are forecast to hit record levels, it said.

Taiwan’s machinery products comprise mainly electronic equipment, inspection and testing equipment, power transmission components and machine tools.

Shipments of electronic equipment saw the largest growth, rising 61 percent to US$700.57 million last month and increasing 46.1 percent to US$5.55 billion in the first three quarters, association data showed.

Machine tool exports were relatively low compared with other product categories, down 1.8 percent to US$167 million last month and down 1.9 percent to US$1.492 billion in the first three quarters, the data showed.

The association attributed the decline to an unfavorable New Taiwan dollar exchange rate compared with the Japanese yen and South Korean won, undercutting Taiwanese competitiveness.

The US remained the largest buyer of Taiwanese machinery products in the first three quarters, with purchases worth US$7.287 billion, accounting for 26 percent of exports, association data showed.

China ranked second, with purchases of US$5.895 billion for a 21.1 percent share of exports. Singapore followed with purchases of US$2.122 billion and accounting for 7.6 percent of the total, the data showed.

The association said the local machinery industry should be able to maintain steady growth ahead, thanks to strong demand for semiconductors and AI servers boosting shipments of electronic equipment and inspection and testing equipment.

However, geopolitical conflicts and export control policies of some countries, such as those concerning high-tech and rare earths, could impact global supply chains. If the availability of key components becomes an issue, it might affect Taiwanese manufacturers’ order visibility and export outlook going forward, it said.