On October 9, the Taiwan Mechanical Industry Association reported a noteworthy development: the export value of Taiwan’s machinery sector for September reached $2.42 billion, marking a year-on-year decline of 0.6% and a month-on-month drop of 12.3%. This decline comes after ten consecutive months of growth in exports, prompting commentary that the industry has shifted from “growth to decline.”
According to various Taiwanese media, including Central News Agency and Commercial Times, the cumulative export value for the machinery sector in the first nine months of this year totaled $21.82 billion, reflecting a year-on-year decrease of 0.8%. The primary markets for these exports are the United States and mainland China, accounting for 24.8% and 23.3% of the total respectively, while Japan follows in third place with 7.2%.
In terms of product categories, electronic equipment, measurement and testing devices, and machine tools represent the largest shares of exports, comprising 16.9%, 16.3%, and 7.5%, respectively.
The association highlighted a significant decline in exports specifically within the machine tool industry. Exports to the U.S. decreased by 13% compared to the previous year, while exports to mainland China saw a reduction of 9.6%. Notably, in the third quarter, machine tool exports to the mainland plummeted by 23.5%, indicating that Taiwanese machine tools are facing substantial challenges in the mainland market.
Additionally, reports from United Daily News emphasize that Taiwan’s machinery and equipment sector is heavily export-oriented, and it is significantly affected by factors such as exchange rates, tariffs, and geopolitical tensions. Despite continuous efforts by Taiwanese manufacturers to enhance product value and services amid escalating global geopolitical conflicts, there remains a strong need for ongoing support and assistance from the Taiwanese government.
