The nation’s electrical engineering and machinery industry could consider Southeast Asia as a market for new demand, the Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) said last week.
Given the region’s stable economic growth, demand from Southeast Asian countries would be more favorable in the long term, TIER senior analyst Wang Chung-ching (王忠慶) told a seminar organized by Taiwan Stock Exchange Corp (台灣證券交易所) on Wednesday.
As demand in Taiwan is unlikely to increase significantly in the near future, manufacturers need to seek new sales drivers in emerging markets while the government could help manufacturers find new buyers via existing channel networks, as many Taiwanese companies have operated in Southeast Asia for years, Wang said.
Taiwan’s exports of machinery equipment dropped 6.9 percent to US$19.4 billion last year from a year earlier, the fourth consecutive year of decline, data compiled by the Taiwan Association of Machinery Industry (TAMI, 台灣機械工業同業公會) showed.
Shipments to China and the US, the top two markets for local machinery makers, declined by 12.7 percent and 0.6 percent year-on-year last year respectively, TAMI’s data showed.
China was the destination for about 26 percent of all Taiwanese machinery exports last year, followed by the US, with 17.9 percent, while Southeast Asia accounted for 16.7 percent or US$3.24 billion, the TAMI data showed.
“The machinery industry’s exports have been stagnant since 2011, mainly dragged down by the sluggish demand after the global financial crisis [2008 to 2009],” Wang said, adding that challenges also comes from the supply side.
Local manufacturers face a rising competition from their global peers, such as Germany and China, who have used new technologies to enhance their capabilities.
Germany, which initiated the idea of “Industry 4.0” in 2011, has extended its focus to the computerization of manufacturing process in all its industrial sectors, Wang said.
Foreign exchange fluctuation is another drag on Taiwan’s exports, he said.
The dramatic depreciation of China’s yuan against major global currencies significantly hurt the industry last year, he added.
Local manufacturers should boost their niches in the global market through product differentiation, he said.
“Most machinery companies only provide individual machines or components. They should try to develop total solutions for end-market customers,” he said.
To raise the competitiveness of the nation’s traditional industries, the Taiwan Machine Tool & Accessory Builders’ Association (台灣工具機暨零組件工業同業公會) has said that it is seeking to cooperate with companies in different fields, including the semiconductor industry, to differentiate their products from those of their rivals.
A proposed 100 percent tariff on chip imports announced by US President Donald Trump could shift more of Taiwan’s semiconductor production overseas, a Taiwan Institute of Economic Research (TIER) researcher said yesterday. Trump’s tariff policy will accelerate the global semiconductor industry’s pace to establish roots in the US, leading to higher supply chain costs and ultimately raising prices of consumer electronics and creating uncertainty for future market demand, Arisa Liu (劉佩真) at the institute’s Taiwan Industry Economics Database said in a telephone interview. Trump’s move signals his intention to "restore the glory of the US semiconductor industry," Liu noted, saying that
On Ireland’s blustery western seaboard, researchers are gleefully flying giant kites — not for fun, but in the hope of generating renewable electricity and sparking a “revolution” in wind energy. “We use a kite to capture the wind and a generator at the bottom of it that captures the power,” said Padraic Doherty of Kitepower, the Dutch firm behind the venture. At its test site in operation since September 2023 near the small town of Bangor Erris, the team transports the vast 60-square-meter kite from a hangar across the lunar-like bogland to a generator. The kite is then attached by a
Foxconn Technology Co (鴻準精密), a metal casing supplier owned by Hon Hai Precision Industry Co (鴻海精密), yesterday announced plans to invest US$1 billion in the US over the next decade as part of its business transformation strategy. The Apple Inc supplier said in a statement that its board approved the investment on Thursday, as part of a transformation strategy focused on precision mold development, smart manufacturing, robotics and advanced automation. The strategy would have a strong emphasis on artificial intelligence (AI), the company added. The company said it aims to build a flexible, intelligent production ecosystem to boost competitiveness and sustainability. Foxconn
STILL UNCLEAR: Several aspects of the policy still need to be clarified, such as whether the exemptions would expand to related products, PwC Taiwan warned The TAIEX surged yesterday, led by gains in Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after US President Donald Trump announced a sweeping 100 percent tariff on imported semiconductors — while exempting companies operating or building plants in the US, which includes TSMC. The benchmark index jumped 556.41 points, or 2.37 percent, to close at 24,003.77, breaching the 24,000-point level and hitting its highest close this year, Taiwan Stock Exchange (TWSE) data showed. TSMC rose NT$55, or 4.89 percent, to close at a record NT$1,180, as the company is already investing heavily in a multibillion-dollar plant in Arizona that led investors to assume
RSS