Large Rise in Output Value for Electronics, Semiconductor Equipment: ITRI

September 29, 2006

The Industrial Research and Technology Institute (ITRI) announced results from its industry survey report on the machinery industry for the first half of the year, which showed that electronics and semiconductor production equipment are now among the top three performers in the machinery industry.

The report was produced by Industrial Technology Intelligence Services (ITIS), a division of ITRI.

Electronics and semiconductor equipment were also among the fastest growing, and are helping Taiwan's domestic production of optoelectronics and semiconductor equipment, said ITIS General Manager Liu Xin-hong.

Liu said that the output value of electronics and semiconductor equipment grew by 33% last year, and increased by 48% during the first half of the year to NTD 22.3 billion. Preliminary estimates place the production value of electronics and semiconductor equipment at NTD 417 billion for the entire year -- an increase of 42.3%.

Last year, high-tech industry equipment from machinery tool producers at the Taichung Precision Machinery Park enjoyed sales last year approaching NTD 600 million. This year, these companies continue to receive orders for various equipment, including All Electronic Injection Molding Machines, which have been selling well. Major companies, including Honhai Precision and TSMC, have placed orders for the machines. The ITRI report projects that sales will reach NTD 700 million in 2006.

Taiwan Association of Machinery Industry (TAMI) Vice-Secretary Wang Zheng-qing said that Taiwan machinery production this year has relied on high-tech industry manufacturing equipment for applications such as the flat panel industry and value-adding precision machinery. With estimated growth between 30% to 40% in this area, overall machinery industry output should experience growth of between 10% and 15% in 2006, said Wang.

In Q1 2006, Taiwan machinery has seen clear growth in the export markets of Mainland China, Europe, Asia, and the US. Overall, product output for the machinery industry in Q2 amounted to NTD 147.7 billion, an increase of 2% on the previous year. In the first half of the year, machinery output totaled NTS 278.2 billion, growing 1% over the same period last year.

The machinery industry's top performer are manufacturers of metal-cutting tools. Cutting tool machines fell to a low during Q3 2005, but quickly recovered, enjoying 10% growth in Q4 2005 and Q1 2006. Output in the first half of 2006 totaled NTD 31.5 billion, and is predicted to reach NTD 67.7, an increase of 13%.

In the latter half of last year, Taiwan machinery exports to mainland China amounted to NTD 58.4 billion, growing 17%. Among these, metal-cutting tool exports  rose last year from NTD 6 billion to NTD 8 billion, while electronic production equipment rose from NTD 400 million to NTD 5.2 billion.

Overall, most of Taiwan's machinery exports to mainland China enjoyed double-digit growth in the first six months of the year, pointing to an earlier-than-expected recovery.

(Economic Daily News)

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