Taiwan’s machinery industry is expected to continue to grow at an annual pace of 5 to 10 percent to surpass NT$1.2 trillion (US$38.9 billion) this year, despite headwinds from the US-China trade dispute, an industry association said yesterday.
While the dispute has raised concerns among customers worldwide, inelastic demand remains intact and would support growth this year, Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) chairman Alex Ko (柯拔希) was quoted as saying by the Central News Agency.
Inelastic demand from the continued adoption of automation and smart manufacturing technologies and ongoing infrastructure projects have not been affected by the trade spat, Ko said, adding that Taiwan’s machinery sector is expected to grow at an annual pace of NT$80 billion to NT$100 billion.
On the upside, many suppliers of global brands have been asked to diversify their production lines beyond China, and the anticipated migration of factories to Vietnam, India and other developing markets is likely to support machinery demand, he said.
Taiwan’s machinery exports last month rose 2.6 percent annually to US$2.27 billion, TAMI data showed.
With the local currency weakening last month, that translated into annual growth of 6.6 percent in New Taiwan dollar-denominated figures, TAMI said.
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