Taiwanese machine tool makers Goodway Machine Corp (程泰機械) and Tongtai Machine and Tool Co (東台精機) yesterday said that orders and demand are on the rise, indicating that the nation’s machine tool industry is recovering from last year’s slump.
Goodway Machine, which makes computerized numerical control latches, said that orders from the automobile and aviation sectors picked up in the past two months. The company has received about NT$500 million (US$15.43 million) in orders for lathes, which are expected to cover its capacity for two months, it said.
“We hope this month will be better,” Goodway Machine general manager Hsu Fu-chu (許福助) said, adding that the company is focusing on China, where demand tends to rise during this month to June.
The Asian market is looking up this year, as Thailand’s and Malaysia’s currencies stabilize, while the European and US markets are likely to remain the same as last year, Hsu added.
Europe and China are Goodway’s two largest markets, accounting for 35 percent and 29 percent of its revenue respectively last year. The US and Taiwan provided 13 percent and 10 percent.
Tongtai also saw a recovery in orders from China last month and increased demand from Russia this month, spokeswoman Lulu Yen (嚴璐) said.
“We expect to see clearer signs of growth from the end of the second quarter to the beginning of the third quarter,” Yen said.
Taiwan’s machine tool industry was gloomy last year due to a domestic economic slowdown and a depreciating yen, which enhanced Japanese makers’ competitiveness.
Last year, Goodway Machine reported that revenue decreased 8.4 percent annually to NT$7.16 billion. Net income dropped 9.3 percent to NT$622 million from the previous year.
RECYCLE: Taiwan would aid manufacturers in refining rare earths from discarded appliances, which would fit the nation’s circular economy goals, minister Kung said Taiwan would work with the US and Japan on a proposed cooperation initiative in response to Beijing’s newly announced rare earth export curbs, Minister of Economic Affairs Kung Ming-hsin (龔明鑫) said yesterday. China last week announced new restrictions requiring companies to obtain export licenses if their products contain more than 0.1 percent of Chinese-origin rare earths by value. US Secretary of the Treasury Scott Bessent on Wednesday responded by saying that Beijing was “unreliable” in its rare earths exports, adding that the US would “neither be commanded, nor controlled” by China, several media outlets reported. Japanese Minister of Finance Katsunobu Kato yesterday also
China Airlines Ltd (CAL, 中華航空) said it expects peak season effects in the fourth quarter to continue to boost demand for passenger flights and cargo services, after reporting its second-highest-ever September sales on Monday. The carrier said it posted NT$15.88 billion (US$517 million) in consolidated sales last month, trailing only September last year’s NT$16.01 billion. Last month, CAL generated NT$8.77 billion from its passenger flights and NT$5.37 billion from cargo services, it said. In the first nine months of this year, the carrier posted NT$154.93 billion in cumulative sales, up 2.62 percent from a year earlier, marking the second-highest level for the January-September
‘DRAMATIC AND POSITIVE’: AI growth would be better than it previously forecast and would stay robust even if the Chinese market became inaccessible for customers, it said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its full-year revenue growth outlook after posting record profit for last quarter, despite growing market concern about an artificial intelligence (AI) bubble. The company said it expects revenue to expand about 35 percent year-on-year, driven mainly by faster-than-expected demand for leading-edge chips for AI applications. The world’s biggest contract chipmaker in July projected that revenue this year would expand about 30 percent in US dollar terms. The company also slightly hiked its capital expenditure for this year to US$40 billion to US$42 billion, compared with US$38 billion to US$42 billion it set previously. “AI demand actually
Jensen Huang (黃仁勳), founder and CEO of US-based artificial intelligence chip designer Nvidia Corp and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) on Friday celebrated the first Nvidia Blackwell wafer produced on US soil. Huang visited TSMC’s advanced wafer fab in the US state of Arizona and joined the Taiwanese chipmaker’s executives to witness the efforts to “build the infrastructure that powers the world’s AI factories, right here in America,” Nvidia said in a statement. At the event, Huang joined Y.L. Wang (王英郎), vice president of operations at TSMC, in signing their names on the Blackwell wafer to
RSS