Taiwan’s machine tool exports declined by 10.7% in the first four months of the year compared to the same period last year, according to data released by the Taiwan Machine Tool and Accessory Builders’ Association on Friday. However, the rate of decline slowed from 14.9% in the first three months of the year.
Total exports for the period amounted to US$627.4 million, down from US$702.29 million during the same months last year.
Decline in Key Exports
Exports of metal-cutting machines fell by 13% year-on-year, totaling US$505.72 million. Shipments of machining centers saw an 11.1% drop to US$185.99 million, while lathes experienced a significant 21.7% decline to US$132.9 million. On a positive note, exports of metal-forming machines grew slightly by 0.7%, reaching US$121.68 million.
Key Export Markets
Exports to Taiwan’s largest market, China (including Hong Kong), fell by 13.9% to US$176.08 million. Shipments to the US, the second-largest market, declined by 1.9% to US$102.39 million, while exports to Turkey, the third-largest market, plunged by 30.7% to US$46.73 million.
Overall Machinery Exports See Growth
Despite the decline in machine tool exports, Taiwan’s overall machinery exports grew by 4.7% year-on-year, reaching US$9.41 billion. This increase was driven by higher shipments of inspection and testing equipment, as well as electronic equipment, which helped offset the drop in machine tool sales.
The US remained the top destination for Taiwanese machinery exports, accounting for US$2.47 billion, followed by China at US$2.14 billion and Japan at US$767 million.
Challenges Ahead for Manufacturers
While the overall machinery industry is seeing a slow recovery, the impact of the US’s “reciprocal” tariffs continues to pose challenges for local manufacturers, particularly concerning global economic conditions and end-market demand.
The Taiwan Association of Machinery Industry also noted that the appreciation of the New Taiwan dollar against the US dollar is an additional concern. The NT dollar has risen by 8.7% against the US dollar between April 4 and May 8, much faster than other currencies, including the won, yen, and yuan, which saw increases of 4.5%, 2.5%, and 0.5%, respectively. This could further dampen Taiwanese manufacturers’ ability to secure orders and negatively impact their profits.
The association has urged the government to take action to ease the rapid appreciation of the NT dollar, which has become a critical factor affecting local manufacturers’ competitiveness in global markets.
