Taiwan's Machine Tool Industry
Nov
01,
2012
The island stands at No.4 in the worldwide machine tool sector.
Taiwan’s machine tool suppliers are poised to play a major role in the global machine tool market. As of 2011, Taiwan was the world's fourth largest machine tool exporter. Moreover, the government's large-scale support of the sector along with the steady effort of companies has helped Taiwan's machinery industry to accumulate impressive capabilities in R&D, manufacturing and marketing.
According to statistics compiled by the Taiwan Association of Machinery Industry (TAMI), Taiwan’s exports of machine tools are estimated to hit a record high of US$4.2 billion by revenue in 2012. That's after the local industry’s revenue for the first half rose 9.40% year on year to US$2.09 billion.
Taiwan’s machine tool industry currently has the highest production among all categories in the machinery industry, with 75% of the island’s machine tool production goes to the export market. According to TAMI, China, the European Union, ASEAN nations and the U.S.A. make up about Taiwan 75% of Taiwan's total machine tool exports, with Germany forming the biggest market in the EU.
Taiwan has built up its machine tool industry over a period of more than four decades. Long-term investment by Taiwanese firms in the development of key machine tool parts and components has successfully boosted the industry's performance and technological expertise. And local manufacturers that in the past chiefly supplied domestic machine assembly companies have been successful in developing international markets. As a result, Taiwan machine tool parts companies have enjoyed excellent growth and profitability.
According to TAMI, Taiwan's advantages in the global machine tool market stem from the fact that it offers its buyers products made at the same high level of quality as other markets but for a much lower cost. Another advantage is that Taiwan provides a much faster delivery time (average three months) compared its counterparts in other markets, such as Japan and Europe. In addition, the four industrial machinery parks spread throughout the island help to boost the quantity and quality of the industry by promoting a cluster effect.
The majority of Taiwan's exported machine tools currently consist of metal cutting machines, including machining centers and lathes. Taiwan’s machine tool exports between 2012 and 2015 will consist mostly of machining centers, metal forming machine tools, as well as drilling machines and tapping centers.
Taiwan's machine tool industry has also helped to fuel the growth of other sectors, particularly the ICT and consumer electronics industries. For example, Taiwan’s machine tool industry recently began developing high-speed cutting machines needed for the production of 3C molds and aluminum and magnesium alloy parts. By further boosting its technological level, the machine tool sector was able to provide the necessary support to other relevant industries including the bicycle, aerospace, green energy, medical equipment, and precision mold industries.
Taiwan's excellence in machine tool design and manufacturing is regularly showcased at major trade shows such as JIMTOF 2012, which is held in Tokyo, Japan. Among this year's entries from Taiwan will be the Military Connector and Metal Connector from Apex Precision Technology Corp. and the Linear Motor Drive Wire Cut EDM Q4025L from Chin Hung. Luren Precision Co.will show its LWT-2080/3080, while Shin-Yain Industrial Co. is set to feature its PSC series and SAR boring head series.
Meanwhile, 2011 saw another landmark in the local industry when TIMTOS (Taipei International Machine Tool Show), became Asia’s second largest exhibition of its kind and the largest in Taiwan. This year marked the 15th run of the show, which is co-hosted by TAITRA and TAMI. TIMTOS not only represents an annual major event in Asia’s machine tool industry but is also a key platform for Taiwan’s machine tool industry to keep pace with global trends.
Other major Taiwan machine tool manufacturers include AWEA, Victor Taichung, and Yeong Chin Machinery Industries.