bbk machinery industry taiwan june 2013
DESCRIPTION
ÂTRANSCRIPT
OFFICIAL PROGRAM
June 2013
MACHINERY INDUSTRY IN TAIWAN
MACHINERY INDUSTRY IN TAIWAN
2
MACHINERY INDUSTRY IN TAIWAN
Language: English
Number of pages: 45
Author: Trade Office of Swiss Industries (TOSI), Taiwan
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Contents
MACHINERY INDUSTRY IN TAIWAN
3
1. INTRODUCTION _____________________________ 6
2. OVERVIEW OF TAIWAN MACHINERY INDUSTRY _ 8
2.1. Characteristics of the industry _________________ 8
2.2. Industrial development _____________________ 8
3. FOREIGN TRADE OF TAIWAN MACHINERY _____ 14
3.1. Current Development ______________________ 14
3.2. 3.2 Swiss machinery in Taiwan market ___________17
4. DOWNSTREAM INDUSTRIES’ DEVELOPMENT AND
MARKET TREND ______________________________ 19
4.1. Semiconductor industry ____________________ 19
4.2. Printed circuit board industry ________________ 20
4.3. Panel display industry _____________________ 21
4.4. Green energy industry _____________________ 22
4.5. 3C industry _____________________________ 23
5. MACHINE TOOL INDUSTRY __________________ 28
5.1. Industry overview ________________________ 28
5.2. Industrial development and trend _____________ 28
6. HI-TECH EQUIPMENT INDUSTRY ______________ 31
6.1. Semiconductor-manufacturing equipment industry __ 31
6.2. Panel display production-equipment manufacturing-
industry 32
7. ROBOT INDUSTRY __________________________ 35
7.1. Industry overview ________________________ 35
7.2. Industrial development and trend _____________ 35
8. MECHANICAL CRITICAL COMPONENTS ________ 38
8.1. Industry overview ________________________ 38
8.2. Import/export analysis _____________________ 38
9. OUTLOOK OF MACHINERY INDUSTRY _________ 39
10. APPENDIX ________________________________ 40
10.1. Machinery Related Trade Fairs _______________ 40
10.2. Associations and Other Sources ______________ 40
10.3. Custom Tariffs __________________________ 41
List of tables
MACHINERY INDUSTRY IN TAIWAN
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Table 1. General machinery industry – category and scope ______________________________________________ 7 Table 2. R&D staffs _______________________________________________________________________ 10 Table 3. Number of employees ________________________________________________________________ 10 Table 4. Taiwan industries’ ranks in the world ______________________________________________________ 11 Table 5. Exports of Taiwan-made machinery by products ______________________________________________ 14 Table 6. Imports of general machinery by products __________________________________________________ 15 Table 7. Exports of Taiwan-made machinery by country ______________________________________________ 15 Table 8. Imports of general machinery, 2012 by country ______________________________________________ 16 Table 9. Swiss Machinery Exports to Taiwan ______________________________________________________ 17 Table 10. Major indexes of Taiwan’s IC packaging & testing industry ______________________________________ 20 Table 11. 3C industry’s development and market trend _______________________________________________ 23 Table 12. Ball screw industry’s output values in recent years ____________________________________________ 38 Table 13. Ball screw imports & exports __________________________________________________________ 38 Table 14. Custom tariffs for selected machinery products for Swiss exports __________________________________ 41
List of graphics
MACHINERY INDUSTRY IN TAIWAN
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Graphic 1. Trend of overall machinery industry ................................................................................................................................ 12 Graphic 2. Trend of machine tool industry ........................................................................................................................................ 12 Graphic 3. Trend of hi-tech equipment industry ............................................................................................................................... 12 Graphic 4. Trend of robot industry..................................................................................................................................................... 13 Graphic 5. Trend of key component industry .................................................................................................................................... 13 Graphic 6. Development of Swiss Machinery Exports to Taiwan ..................................................................................................... 17 Graphic 7. IC output value .................................................................................................................................................................. 19 Graphic 8. IC packaging & testing industry’s output value ............................................................................................................... 19 Graphic 9. Printed circuit board market size .................................................................................................................................... 20 Graphic 10. Large TFT LCD market size and trend ........................................................................................................................... 21 Graphic 11. Small & medium size TFT LCD market size and trend .................................................................................................. 21 Graphic 12. Solar photoelectric industry’s development and market trend .................................................................................... 22 Graphic 13. LED component industry’s development and market trend ........................................................................................ 23 Graphic 14. PC shipment and growth ................................................................................................................................................ 24 Graphic 15. NB shipment and growth ............................................................................................................................................... 24 Graphic 16. MB shipment and growth............................................................................................................................................... 25 Graphic 17. Mobile phone shipment and growth .............................................................................................................................. 25 Graphic 18. Digital camera shipment and growth ............................................................................................................................ 26 Graphic 19. Taiwan’s LCD monitor shipment and growth ............................................................................................................... 26 Graphic 20. LCD TV shipment and growth ....................................................................................................................................... 27 Graphic 21. Taiwan-made machine tool market (including domestic and overseas markets) ....................................................... 29 Graphic 22. Industrial cluster of machine tool ................................................................................................................................. 30 Graphic 23. Semiconductor-manufacturing equipment market (including overseas & domestic markets) trend ....................... 32 Graphic 24. Panel display production-equipment market trend ..................................................................................................... 34 Graphic 25. Industrial robot market demand ........................................................................................................................................ 36 Graphic 26. Industrial robot annual export (value & quantity) ....................................................................................................... 36 Graphic 27. Industrial robot’s annual import (value & quantity) .....................................................................................................37
MACHINERY INDUSTRY IN TAIWAN
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1. Introduction
The machinery industry serves as a fundamental industry that satisfies the strategic needs of an economy. There is a high level
of connection between machinery industry and all other industries. Therefore, the machinery industry is considered a major
industry. It is important to note that mechanical manufacturing technologies play an essential role for other industries, for
economic growth, and for the creation of job opportunities.
The machinery industry involves many trades and it can be interpreted either in a broad sense or in a narrow sense. If
interpreted in a broad sense, the machinery industry consists of five segments, namely: general mechanical equipments,
electric mechanical equipments, transportation equipments, precision machinery, and metal products.
1. General mechanical equipment
General mechanical equipment includes machine tools, textile machines, carpentry mechanical equipment, and
plastic mechanical equipment as well as non-electric mechanical equipment for families and offices, such as sewing
machines and typewriters.
2. Electric mechanical equipment
Electric mechanical equipment refers to all equipment designed for power generation and transmissions, such as
power generators, motors, transformers, and switches.
3. Transportation equipment
Transportation equipment includes automobiles, motorcycles, bicycles, boats, airplanes, trains, and related
accessories.
4. Sophisticated machinery
Sophisticated machinery includes clocks and watches, cameras, optical instruments, medical equipments, etc.
5. Metal products
Metal products include metal tools, screws, hardware parts, non-metal products, etc.
In this report the machinery industry is interpreted in a narrow sense in which general mechanical equipment is considered
the main segment. It focuses on all such mechanical equipment and auxiliary equipment designed solely for manufacturing
needs, such as metal-processing machines, industrial machines, production machines, electronic manufacturing equipment,
universal machines, conveyance & automated equipment, metal molds, other machinery equipment and components.
The machinery industry serves the needs of all other industries. It is, therefore, not possible to list all industries being served
by the machinery industry. Therefore, this report focuses on four major mechanical industries, namely, machine tools, hi-tech
equipments, robots, and key components as shown by the following table.
MACHINERY INDUSTRY IN TAIWAN
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Table 1. General machinery industry – category and scope
Product category Product details
Machine tools NC lathe, other lathes, drilling machine, milling machine, sawing machine,
grinding machine, machining center, other NC machine tools, other machine
centers, unconventional pressing machines, hydraulic pressing machines,
and metal molding machines.
Hi-tech equipment Semiconductor and LCD manufacturing equipment
Robots Robots are divided into 7 categories: handling operations / machine tending,
processing, welding / soldering, dispersing, assembly / disassembly, clean
room, and others.
Key components Ball screws
Agricultural machinery Tiller, sprayer, and other agricultural machinery equipments
Construction machinery
equipment
Concrete blending machine, hydraulic breaking machine, and cranes
Food-processing machinery
equipment
Rice-grinding machine, other food-processing machines and parts
Sewing machine Sewing machines for industrial use, and sewing machines for family use
Textile machinery equipment Shuttleless fiber machine, knitting machine, dyeing and finishing machinery
equipments, other textile machinery equipments and parts
Timber machinery equipment Plywood machinery equipment, sawing machine, planer, lathe, grinder,
rotary sander or polishing machine, other carpentry machinery equipments
and parts
Chemical machinery
equipments
Chemical machinery equipments and parts
Rubber & plastic machinery
equipments
Plastic injection & molding machine, rubber/plastic extrusion machine, other
rubber/plastic machinery equipments and parts
Paper machines and
processing machines
Paper machines and parts
Printing machines Printers, other printing machines and parts
Gas compressors Air compressors, coolant compressors, vacuum pumps, industrial fans
Pumps for fluid Pumps for fluids, and other pumps
Valves Bronze valves, brass valves, balls, globes, disk valves, check valves, metal
valves, etc.
Bearings Ball bearings, roller bearings, sliding bearings (plain shaft bearings), and
bearing swivel combinations.
Power transmission devices Gears, transmission boxes, transmission shafts, guide rails, and lead screws
Conveyance and shipment
machinery equipment
Conveyors, forklifts, lifts, elevating stairways (escalators, elevators), other
conveyance equipment and parts
Packaging machines External packaging machines, internal packaging machines, individual
packaging machines, packaging-related machines
Central air-conditioning and
cooling equipment
Central air-conditioning system, freezers, and cabinets.
Industrial furnace and heaters Boilers, blast furnace, converter, and annealing furnace
Other machinery equipment Shoe machines, can machines, other manufacturing machines and parts,
hazard prevention equipment, fountains, water dispensers, metal machinery
equipment and parts, other unlisted machinery equipment and parts. Source of data: Industrial Economics and Knowledge Research Center (IEK), Industrial Technology Research Institute (ITRI)
MACHINERY INDUSTRY IN TAIWAN
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2. Overview of Taiwan Machinery Industry
2.1. CHARACTERISTICS OF THE INDUSTRY
95% of manufacturers are small & medium businesses
It is some kind of tradition for many Taiwanese to rather have their own their business than work for someone else. This
mentality is quite obvious in the machinery industry. In Taiwan, machinery equipment factory employees open their
businesses several years after they work for their employers. After they open their businesses, their employees open their own
businesses several years later, and so on so forth. As a result, 95 % of machinery equipment factories have 100 employees or
fewer; an average factory has 20 employees or fewer. According to the analysis of business revenues, nearly 90 % of machinery
equipment corporations’ annual sale is less than NT$50 million. Employees’ high turnover ratio means a high level of
homogeneity of products. Naturally, machinery equipment factories have a hard time maintaining their technological
competitiveness.
Regional characteristics
On the island, every region’s machinery industry serves the needs of other industries in that region. It is important, therefore,
to note the relationship between machinery industry and other industries. For example, Taichung has a supply chain
comprising forging-iron, machinery processing, and component manufacturers. Thus, machine tool factories grow significantly
in Taichung. Chaunghwa and Tainan have many textile factories. As a result, textile machinery equipment factories grow
dramatically in both regions. Other examples include Taina’s plastic machinery industry, Fengyuen’s carpentry machinery
industry, Gunshan’s bolts-and-nuts industry, Kaohsiung and Taoyuans’ chemical industry, and Hualien’s jewel processing
machinery industry. In Taiwan, the machinery industry develops differently in different regions.
Specialized in assembly
The component supply chain is pretty much self-sufficient. Most machinery corporations are small & medium businesses that
are short of financial strength, manpower, resources, and technical capabilities. Production processes differ from manufacturer
to manufacturer. Some manufacturers are specialized in maintenance; some specialized in machinery equipment production;
and some manufacturers provide customized machinery equipments. It is important to note that most manufacturers are
specialized in assembly. Apparently, different manufacturers adopt different processes. Few manufacturers have the capability
to integrate the entire production process.
Information not shared and unwilling to pay for information
Most local machinery factories are conservative and unwilling to contact outsiders. Manufacturers are unwilling to share
information with the others and unwilling to pay for information. As a result, machinery manufacturers hardly have any access
to the information regarding industrial trends.
2.2. INDUSTRIAL DEVELOPMENT
Beginning Period
In the 1960s, the Taiwan government listed machinery industry as a key industry. Soon, the machinery industry began to grow.
As a result, the sewing machines, bicycles, and textile machine industries grew dramatically in the 1960s. In the beginning,
Taiwan manufactures machine tools for the manufacturing industries. Then, machine tool industry developed dramatically
when Taiwan’s economy grew. The government launched a “four-year economic plan” to boost export growth. At that time,
Taiwan’s machinery equipment quality was not comparable to the developed countries’ machinery equipment, but prices were
considerably lower. Developing nations began to import Taiwanese machinery equipment. Southeast Asian nations were the
primary markets and Vietnam was the most important market at that time.
In the beginning period, Taiwan’s light industry developed significantly. Manufacturers needed more and more production
equipment and thus quality became a major concern. Meanwhile, a number of new industries were brought to Taiwan, such as
petrochemical, fiber, steel, shipbuilding, and automobile/motorcycle, and thus Taiwan’s industrial structure began to change
and meanwhile machinery manufacturers started to export their products.
MACHINERY INDUSTRY IN TAIWAN
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Growth Period
In the 1980s, the government launched “10-year economic development plan” in which machinery industry was listed as a
strategic industry. Then, the government established a taskforce to research machinery industry and thus initiated “Regulation
of Governing and Assisting Machinery Industry”. In 1982, the government promulgated the “Industry Automation Plan”. This
plan not only imposed a far-reaching influence on machinery industry’s production capacity and product quality, but also laid a
solid foundation for Taiwan’s OEM industry.
In this period, the Bureau of Industrial Development (IDB), Ministry of Economic Affairs (MOEA), appointed the Industrial
Technology Research Institute (ITRI) to establish the “machinery industry’s component standardization” criteria. Machinery
manufacturers formulated standardization procedures for their components in accordance with the criteria and thereby
established a self-sufficient component supply chain. At that time, Taiwan was the second largest exporter of shoes machinery
equipment and the third largest exporter of carpentry machinery equipment worldwide. The country’s plastic machinery
equipment export sales were the third largest, and machine tool the eighth largest.
Made-In-Taiwan Period
In 1970s, the government, private R&D centers, and manufacturers worked together to develop the next-generation high-scale
machine tools. Thus, Taiwan’s machinery industry started to manufacture semiconductor equipments in the capacity of
electronic OEM manufacturers.
In this period Taiwan was noted for its machine tool output value. In an effort to upgrade Taiwan’s machine tool technological
capabilities, ITRI transferred motor’s built-in hi-speed spindle technologies from Switzerland’s IBAG to Taiwan. In 1994,
Taiwan completed a built-in hi-speed spindle by itself for the first time. The technologies were assigned to machine tool
manufacturers, allowing them to develop the sophisticated key components that were required by hi-speed processing-
machinery equipments. Hi-speed spindles were widely accepted by local manufacturers and were thus integrated into
production process by most manufacturers.
In 1995, ITRI began to develop machine tool molding technologies and assisted a number of manufacturers to develop hi-
speed processing-machines. Then, Taiwan’s machine tool manufacturers started to produce hi-speed machine tools and began
to export machine tools to Europe and the US. The government continued to inject R&D expenditures. As a result,
manufacturers upgraded C-grade machine tool (average unit price NT$1 million) to B-grade machine tool (average unit price
NT$3 million) and thus increased the output value of machine tools.
Global Competition Period
The nation’s machinery industry began to seriously compete in the international market when the 21st century unfolded. It
works closely with R&D institutions. ITRI transferred linear motor machine tool technologies from Germany’s Darmstadt
University to Taiwan. In 2001, the first Made-In-Taiwan linear motor machine tool was exhibited at the Taipei International
Machine Tool Show (TIMTOS). The Taiwan-made linear motor machine tool drew attention from all major manufacturers on
the island. More and more manufacturers participated in the R&D of linear motor machine tools and thus set a milestone for
the Taiwan-made machine tools.
In 2000, companies began to inject huge amounts of funds into the production of semiconductors, LED, solar batteries, and
LCD using the manufacturing equipments imported from foreign countries. Taiwan’s manufacturers supplied the equipment
needed for cleaning, shipment, and tests. Later on, Taiwan’s precision machinery manufacturers developed universal process
equipments, and created core technologies and applied techniques. With its core technologies, the precision machinery
industry became the second largest sub-industry in Taiwan’s machinery industry.
Now, Taiwan’s machinery industry is progressively developing hi-speed, highly accurate and highly valued machinery
equipment. In the last few years, the machinery industry focused on the highly valued linear machine tools and compound
machine tool equipments using precise, systematic, and intelligent technologies, in addition to the semiconductor process
equipment and image display process equipment.
MACHINERY INDUSTRY IN TAIWAN
10
Table 2. R&D staffs
Unit: persons
Industry 2009 2010 2011 2012 Descriptions
Machinery industry
(Overall)
6,519 6,182 6,559 6,738 In the last few years, Taiwan’s machinery
industry began to develop highly valued
products, such as precision machines and hi-
tech equipments. Manufacturers employed more
R&D staffs than before.
Machine tool industry 681 747 745 758 The industry will focus on the R&D of intelligent
automation and green energy equipments in the
future. Related R&D staffs are needed. Large
and compound machine tools are needed when
all industries are developing actively.
Hi-tech equipment
industry
238 281 359 398 With domestic electronic industry continues to
develop, more and more Taiwan-made
semiconductors and LCD are produced. With
the process technologies to be upgraded, hi-
tech equipment manufacturers require R&D
staffs to accelerate technological development.
Robot industry 178 198 207 215 Robots are constantly needed by all industries.
All manufacturers require specialties to create
core capabilities and thereby catch up with the
trend of automation.
Key component
industry
845 888 959 986 The number of key component manufacturers
continues to increase, and more R&D staffs are
needed than before. Source of data: IEK, ITRI
Table 3. Number of employees
Unit: 1,000 persons
Industry 2009 2010 2011 2012 Descriptions
Machinery industry
(Overall)
230 219 233 234 To catch up with the trend of intelligent
automation, machinery industry requires
additional employees.
Machine tool industry 27 30 30 30 The number of machine tool industry’s
employees grew insignificantly because
electric & mechanical manufacturers and
machinery manufacturers had a hard time in
finding ideal employees. Usually, hi-tech
industries, such as electronic manufacturers
and photoelectric manufacturers, have it easier
to find employees. Companies expect that
demand will grow. Therefore, machine tool
manufacturers are planning to employ more
staff in order to serve the market needs.
Hi-tech equipment
industry
10 12 15 15 Electronic industry continues to purchase
Taiwan-made equipment and consequently hi-
tech equipment manufacturers are recruiting
staffs more than before. A number of
manufacturers are recruiting production staff
and R&D staff from China. Hi-tech
manufacturers are expected to downsize their
manpower in the future.
MACHINERY INDUSTRY IN TAIWAN
11
Robot industry 5.7 6.4 6.7 6.7 At the time when Chinese workers’ wages
increase dramatically, manufacturers resort to
robots and thus automation becomes a
possible solution for manufacturers. Moreover,
robots are a perfect tool to handle purchase
orders that comprise many items with small
quantities of each item. As a result, robots are
becoming more popular than ever.
Key component
industry
26 27 29 29 Taiwan’s key components are highly
competitive in the international market. More
and more manufacturers are building new
factories. The number of employees is
increasing steadily. Source of data: IEK, ITRI
Table 4. Taiwan industries’ ranks in the world
Unit: US$ million
Industry Year Rank Output value Worldwide market share
Machinery industry
(overall)
2010 10 27,167 3.16 %
2011 9 33,538 3.39 %
2012 9 32,517 3.36 %
2013 (f) 9 32,729 3.33 %
2014 (f) 9 33,482 3.33 %
Machine tool industry 2010 6 3,877 5.5 %
2011 6 5,000 5.3 %
2012 6 4,144 5.0 %
2013 (f) 6 4,123 4.7 %
2014 (f) 5 4,131 4.5 %
Hi-tech equipment
industry
2010 4 3,148 5.94 %
2011 4 3,760 6.90 %
2012 4 2,863 5.21 %
2013 (f) 4 2,944 5.04 %
2014 (f) 4 3,052 5.81 %
Robot industry 2010 10 111 1.95 %
2011 10 157 2.34 %
2012 10 165 2.41 %
2013 (f) 10 173 2.39 %
2014 (f) 10 183 2.28 %
Key component
industry
2010 2 217 15.31 %
2011 2 274 15.31 %
2012 2 258 15.64 %
2013 (f) 2 276 15.92 %
2014 (f) 2 297 16.30 % Source of data: IEK, ITRI
MACHINERY INDUSTRY IN TAIWAN
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Graphic 1. Trend of overall machinery industry
(NT$ million)
Source of data: IEK, ITRI
Graphic 2. Trend of machine tool industry
(NT$ million)
Source of data: IEK, ITRI
Graphic 3. Trend of hi-tech equipment industry
(NT$ million)
Source of data: IEK, ITRI
859'567
988'041 966'408
981'871 1'004'454 85.5%
14.9%
-2.19% 1.6% 2.3%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
750'000
800'000
850'000
900'000
950'000
1'000'000
1'050'000
2010 2011 2012(e) 2013(f) 2014(f)Production valueGrowth rate
131'807
164'210 164'247 166'583 168'919
85.50%
24.60%
0.02% 1.40% 1.40%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
50'000
100'000
150'000
200'000
2010 2011 2012(e) 2013(f) 2014(f)
Production value
Growth rate
131'807
164'210 164'247 166'583 168'919
85.50%
24.60%
0.02% 1.40% 1.40%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
50'000
100'000
150'000
200'000
2010 2011 2012(e) 2013(f) 2014(f)
Production value
Growth rate
MACHINERY INDUSTRY IN TAIWAN
13
Graphic 4. Trend of robot industry
(NT$ million)
Source of data: IEK, ITRI
Graphic 5. Trend of key component industry
(NT$ million)
Source of data: IEK, ITRI
99'470
110'924
85'033 88'326 91'549
129%
12%
-23%
4% 4%
-50%
0%
50%
100%
150%
0
20'000
40'000
60'000
80'000
100'000
120'000
2010 2011 2012(e) 2013(f) 2014(f)
Production valueGrowth rate
3'517
4'616 4'893
5'186 5'497
10%
31%
6% 6% 6%
0%
5%
10%
15%
20%
25%
30%
35%
0
1'000
2'000
3'000
4'000
5'000
6'000
2010 2011 2012(e) 2013(f) 2014(f)
Production value
Growth rate
MACHINERY INDUSTRY IN TAIWAN
14
3. Foreign Trade of Taiwan Machinery
3.1. CURRENT DEVELOPMENT
Based on statistics compiled by the Taiwan Association of Machinery Industry (TAMI), local exports of machinery fell 1.7 % to
US$20.75 billion in 2012. Machine tools ranked first with an export amount of US$4.24 billion (+5.9 %). Plastic and rubber
machinery came second with US$1.35 billion (+0.7 %). Bearings, gears, ball screws were third, amounting to US$1.22 billion (-
8.3 %) and other special machinery was fourth (-6.8 %) and pumps, compressors, fans ranked fifth (+0.9 %). According to
TAMI, the nation’s machinery exports between 2013 and 2015 will consist mostly of machine tools, plastic & rubber machinery,
as well as bearings, gears, ball screws.
The import value of machinery reached US$22.13 billion (-13.1 %). Imports of machinery for the high-tech industries such as
semiconductor, IC, and 3C industries, amounted to US$10.1 billion, and accounted for 45.7 % of total machinery imports.
Engines & parts ranked second with an amount of US$1.27 billion, and a share of 5.8 % (+9.2 %), followed by pumps, fans,
compressors with a share of 5.4 % of the total and negative growth of 13.2 %.
Table 5. Exports of Taiwan-made machinery by products
Unit: US$1,000
2012
Rank
Products 2012 2011 Change
(%) Value % Value
1 Machine Tools 4,236,448 20.4 4,000,922 5.9
2 Plastics & Rubber Machinery 1,349,271 6.5 1,339,237 0.7
3 Bearings, Gears, Ball Screws 1,222,990 5.9 1,333,257 -8.3
4 Other Special Machinery 1,219,810 5.9 1,308,640 -6.8
5 Pumps, Compressors, Fans 1,177,263 5.7 1,166,507 0.9
6 Valves & Parts 1,151,653 5.6 1,131,183 1.8
7 Paper Making, Printing Machinery 901,247 4.3 917,654 -1.8
8 Parts & components 875,228 4.2 1,004,241 -12.8
9 Textile Machinery 573,748 2.8 615,185 -6.7
10 Material Handling Equipment 529,298 2.6 560,207 -5.5
11 Molds & Dies 518,264 2.5 520,332 -0.4
12 Food & Packaging Machinery 501,316 2.4 471,094 6.4
13 Wood Working Machinery 485,060 2.3 539,952 -10.2
14 Sewing Machines, Leather & Shoes Making
Machines
474,632 2.3 521,470 -9.0
Others 5,531,923 26.7 5,676,463 -2.5
Total 20,748,151 100.0 21,106,344 -1.7 Source of data: Taiwan Association of Machinery Industry (TAMI)
MACHINERY INDUSTRY IN TAIWAN
15
Table 6. Imports of general machinery by products
Unit: US$1,000
2012
Rank
Products 2012 2011 Change
(%) Value % Value
1 IC、Machinery for IC. Semiconductor 10,104,498 45.7% 10,749,157 -6.0%
2 Engines & Parts 1,272,584 5.8% 1,165,732 9.2%
3 Pumps, Fans, Compressors 1,189,799 5.4% 1,370,451 -13.2%
4 Other Special Machinery 1,099,273 5.0% 1,337,473 -17.8%
5 Components and Parts 875,587 4.0% 1,044,021 -16.1%
6 Valves & Parts 682,126 3.1% 793,392 -14.0%
7 Machine Tools 647,663 2.9% 828,916 -21.9%
8 Air Conditioning & Refrigerators 531,756 2.4% 546,077 -2.6%
9 Equipment for the Treatment of Material 461,052 2.1% 809,104 -43.0%
10 Machinery for Glassware 422,814 1.9% 637,390 -33.7%
11 Textile Machinery 374,518 1.7% 474,551 -21.1%
12 Handling Equipment 315,602 1.4% 499,613 -36.8%
13 Plastics & Rubber Machinery 310,442 1.4% 404,751 -23.3%
Others 3,842,534 17.4% 4,808,417 -20.1%
Total 22,130,248 100.0% 25,469,045 -13.1% Source of data: Taiwan Association of Machinery Industry (TAMI)
Taiwan is one of the world's largest machinery exporters. More than 60 % of the production was exported, mainly to China,
EU, ASEAN and the USA. In 2012, China/Hong Kong were the largest export outlet by absorbing US$6.48 billion of the
machineries, showing a decline of 9.4 % and accounting for 31.2 % of the total exports. The US ranked second with US$3.19
billion, +6.3 %, and commanding 15.4 % of the total. Japan stood at third place with US$1.25 billion, reflecting an advance of
3.7 %. Exports to Thailand jumped to fourth position with a strong expansion of 29 % to reach US$950 million. Exports to
Indonesia also grew considerably (+13.7 %), amounting to US$684 million. However, exports to Brazil, India and Vietnam
shrunk between 8 to 25 %, phenomena which TAMI attributed to rival South Korean firms gaining a bigger market share on
the back of their government’s free-trade agreements and comprehensive economic partnership agreements. For instance,
South Korean companies have built several automotive manufacturing plants in India with zero-tariff treatments under the
Comprehensive Economic Partnership Agreement, driving demand for South Korea-made machine tools up. As for 2013,
TAMI expected that exports of machinery will rebound by 2.5 % to 5 %, but it is still largely determined by the development of
China’s economy, the debt crises in Europe and the US. Moreover, the higher NT-dollar-to-greenback rate may be another
uncertainty to sales of local machinery industry.
The market potential in emerging markets such as Brazil, India, Turkey, Russia, ASEAN (Association of Southeast Asian
Nations), and the Middle East offers interesting business opportunities for Taiwanese machinery manufacturers with good
quality machines at reasonable prices. With the steadily increasing business in emerging markets, TAMI noted that local
machinery suppliers are set to play an even more important role in these markets.
Table 7. Exports of Taiwan-made machinery by country
Unit: US$1,000
2012
Rank
Country 2012 2011 Change
(%) Value % Value
1 China + Hong Kong 6,478,701 31.2 7,147,245 -9.4
2 USA 3,191,934 15.4 3,002,896 6.3
3 Japan 1,248,988 6.0 1,203,892 3.7
4 Thailand 950,269 4.6 734,448 29.4
5 Indonesia 683,928 3.3 601,651 13.7
MACHINERY INDUSTRY IN TAIWAN
16
6 Vietnam 615,792 3.0 666,193 -7.6
7 Germany 589,775 2.8 668,114 -11.7
8 Korea 492,065 2.4 501,230 -1.8
9 India 471,786 2.3 583,485 -19.1
10 Singapore 460,855 2.2 363,659 26.7
11 Malaysia 458,700 2.2 482,304 -4.9
12 Turkey 390,436 1.9 383,332 1.9
13 Netherlands 308,519 1.5 329,499 -6.4
14 UK 280,440 1.4 269,587 4.0
15 Brazil 250,484 1.2 321,665 -22.1
16 Russia 249,460 1.2 220,396 13.2
17 Italy 248,277 1.2 285,045 -12.9
18 Canada 243,839 1.2 234,369 4.0
19 Australia 220,631 1.1 231,026 -4.5
20 Philippines 220,631 1.1 231,026 -4.5
Others 2,692,641 13.0 2,645,282 1.7
Total 20,748,151 100.0 21,106,344 -1.7 Source of data: Taiwan Association of Machinery Industry (TAMI)
Due to a weak capital demand and an unwillingness to expand local operations, machinery imports to the island dropped 13 %
in 2012. Japan remained the island's largest supplier with an export value of US$7.58 billion of machineries, representing a
drop of 18 % and accounting for 34 % of total imports. The US was the second largest supplier with US$4.19 billion, -9.3 %, and
commanding 18.9 % of total imports. China/Hong Kong were on third place with a decrease of 3.8 % and accounting for 11.4 %
of total. Germany was on the fifth spot with a steep decrease of 40.2 %, share 6.3 % of total. Swiss exports also fell sharply by
41.6 %, accounting for 1.4 % of the total.
In addition to the drop of imports, on the consumption side of the equation, Taiwan’s demand for machineries also remained
weak. Total equipment installed was worth US$993 billion, a 8.65 % decrease from 2011. However, demand for high value-
added, automated equipment for local high technology and semi-conductor industries accounted for the high volume of
imported machineries.
Table 8. Imports of general machinery, 2012 by country
Unit: US$1,000
2012 Rank
Country 2012 2011 Change (%)
Value % Value
1 Japan 7,581,571 34.3 9,246,801 -18.0
2 USA 4,190,070 18.9 4,617,852 -9.3
3 China + Hong Kong 2,530,105 11.4 2,629,049 -3.8
4 Netherlands 2,255,894 10.2 1,901,435 18.6
5 Germany 1,383,538 6.3 2,312,167 -40.2
6 Korea 594,971 2.7 726,672 -18.1
7 Switzerland 308,715 1.4 528,225 -41.6
8 Italy 264,532 1.2 482,514 -45.2
9 UK 233,513 1.1 296,938 -21.4
10 France 154,533 0.7 159,055 -2.8
Others 2,632,806 11.9 2,568,337 2.5
Total 22,130,248 100.0 25,469,045 -13.1 Source of data: Taiwan Association of Machinery Industry (TAMI)
MACHINERY INDUSTRY IN TAIWAN
17
3.2. 3.2 SWISS MACHINERY IN TAIWAN MARKET
Exports of Swiss machinery to Taiwan market have shown a steady increase over the years, only interrupted by the 2009 and
2012’s global economic crisis. Some 25 years ago, Swiss textile machines were the leading export item to Taiwan, due to the
vast expansion of this industry on the island. Swiss textile machines accounted for over 40 % of the total Swiss exports at that
time. The restructuring and the establishment of other local industries gradually generated a new demand of other production
equipment from Swiss suppliers. In the last decade machine tools, tools, machinery for electronics/semiconductor/flat panel
display as well as paper, printing, packaging and welding machines have become the principle machinery exports to Taiwan,
while textiles machines exports decreased to a small percentage figure. They have been replaced by IT related production
machineries.
Graphic 6. Development of Swiss Machinery Exports to Taiwan
(CHF million)
Source: Swissmem
Switzerland sees Taiwan as one of its important machinery market. Citing machine tools as an example, Switzerland was the
island’s second-largest supplier in 2011, only after Japan, with sales of over US$70 million (+50 %) and accounting for 9 % of
Taiwan’s total machine tool imports, according to local customs statistics. However, the sluggish investment and business
climate had a strong impact on exports of Swiss machinery in the following year. Swiss exports of machinery dropped 40 % in
2012, mainly due to the fact that domestic enterprises in major industries, such as semiconductor and electronics have already
completed another investment cycle in 2010/2011 and were reluctant to expand due to the economic slowdown.
Table 9. Swiss Machinery Exports to Taiwan
Unit: CHF million
Category 2012 2011 2010 2009 2008
Machinery, apparatus, electronics 305.0 -38.4 17.7 495.3 422.9 251.6 497.5
·Industrial machinery 235.2 -42.6 13.7 409.5 303.6 182.8 388.2
···Engines non-electrical 51.6 68.0 3.0 30.7 53.3 24.4 27.3
···Construction machinery 1.1 11.9 0.1 1.0 0.7 0.6 0.6
···Machinery engineering 182.4 -51.7 10.6 377.8 249.5 157.9 360.3
····Pumps, compressors, fans, etc. 18.1 -11.3 1.1 20.4 19.5 -- --
····Process engineering, heating, cooling
equip.
8.4 -46.2 0.5 15.5 12.7 -- --
····Lifting and handling equipment 1.5 -70.5 0.1 5.0 2.3 -- --
····Machine-tools metalworking 56.5 -7.2 3.3 60.8 65.5 -- --
····Machine-tools for mineral materials 2.2 -94.5 0.1 40.6 3.2 -- --
····Plastics-, Rubber machinery 1.7 -67.3 0.1 5.3 10.3 -- --
····Machine-tools for wood, cork, etc. 1.8 -58.4 0.1 4.3 5.4 -- --
····Other machinery 57.3 -67.5 3.3 176.4 79.3 -- --
····Hand held tools 0.6 -49.3 0.0 1.1 0.9 -- --
····Welding machines 3.4 -20.8 0.2 4.3 3.3 -- --
0
100
200
300
400
500
600
700
800
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
MACHINERY INDUSTRY IN TAIWAN
18
····Printing and paper machinery 8.4 68.6 0.5 5.0 6.0 -- --
····Textile machines 14.8 -48.3 0.9 28.7 29.7 -- --
····Food processing equipment 2.1 -60.7 0.1 5.3 1.2 -- --
····Filtering and purifying machines 1.1 -45.3 0.1 2.1 5.5 -- --
····Packaging and filling machines 4.5 55.0 0.3 2.9 4.7 -- --
··Agricultural machines 0.1 -26.5 0.0 0.1 0.0 0.0 0.0
··Household appliances 5.2 -6.8 0.3 5.6 5.1 2.6 3.0
···Entertainment electronics 1.4 -57.1 0.1 3.4 3.1 0.9 1.1
···Household machines 3.8 69.0 0.2 2.2 2.0 1.7 1.9
··Office machines 3.0 -29.1 0.2 4.2 5.4 4.2 5.3
··Electrical machinery and electronics 61.5 -18.9 3.6 75.9 108.7 61.9 100.9
···Power generation, electric motors 11.8 6.4 0.7 11.1 12.7 6.3 13.6
···Telecommunications 4.7 313.9 0.3 1.1 1.0 2.5 4.7
···Electric and electronic articles 45.0 -29.3 2.6 63.6 95.0 53.0 82.6
····Electronic parts 14.9 -26.9 0.9 20.3 21.7 -- --
····Electrical switchgear and cables 9.2 -11.9 0.5 10.4 14.1 -- --
····Control, signaling and measuring instr. 6.4 -21.9 0.4 8.2 6.5 -- --
····Other electrical machinery and
apparatus
14.5 -41.2 0.8 24.7 52.7 -- --
··Defense equipment 0.1 274.9 0.0 0.0 0.0 0.0 0.0 Source: Swissmem
During the course of the past 20 years, Taiwanese companies began to shift more and more of their production offshore to
other places in the region such as China, Vietnam, South-East Asia, which resulted in a gradual decrease of the share of direct
exports of capital equipment goods to Taiwan. Even though Taiwanese companies still continue to buy a considerable amount
of Swiss machines for their investment projects abroad, the purchases are, however, not reflected in the trade statistics to
Taiwan as shipments go direct to their off-shore factories abroad. With new investments in high-tech areas and the upgrading
of existing production sites in Taiwan, the demand for Swiss machines remains intact, but the share of machines of total Swiss
exports has been declining.
Further, with the recent implementation of the cross-Taiwan Strait economic cooperation framework agreement (ECFA), some
local and foreign machinery manufacturers have boosted their production on the island. ECFA provides a new platform for
foreign enterprises to enter the Chinese market through Taiwan as a gateway. The zero-tariffs for specific products under ECFA
represent a strong incentive for foreign manufacturers to place more attention to the island as a springboard to China.
However, Swiss products have also been facing severe competition from other nations, notably on higher prices. Suppliers
from Japan, the US, Germany, Taiwan and Korea are the five most important competitors in local market. Swiss machinery
happens to compete with competitors at up to 60 % higher prices levels, enabling them to gain a bigger market share. Swiss
companies find it increasingly difficult to ask for higher prices of their machines as the technology gap between them and their
main competitors is narrowing. For Taiwan customers, “innovation minded” criteria are still the most important factors when
buying Swiss machineries. Factors such as “high technology and productivity” and “requiring accuracy and reliability” are also
regarded as most important by Taiwan’s buyers.
MACHINERY INDUSTRY IN TAIWAN
19
4. Downstream industries’ development and market trend
4.1. SEMICONDUCTOR INDUSTRY
Taiwan’s 2011 IC output value reached NT$1,562.7 billion, 11.7 % less than in 2010. Memory manufacturers’ sales dropped the
most, 32.5 % less than in 2010, because supply exceeded demand in the worldwide DRAM market and prices dropped below
costs. In 2012, the IC output values reached NT$1,664.4 billion, 6.5 % more than in 2011. Taiwan’s 2013 IC output values are
expected to grow 10.6 %, and 2014 IC output values are expected to grow 5.7 %.
Graphic 7. IC output value
(NT$ 100 million)
Source of data: IEK, ITRI
Since global economic depression occurred by the global financial crisis, local IC packaging & testing industry output value
reached NT$390.4 billion, down 5.9 % in 2012. Nevertheless, IC packaging & testing industry’s performance was better than
the overall IC industry. Looking forward, the global economy is likely to grow in the second quarter of 2013, and the island’s
packaging industry is likely to benefit from IDM outsourcing and high-scale packaging services.
Graphic 8. IC packaging & testing industry’s output value
(NT$ 100 million)
Source of data: IEK, ITRI
17'693 15'627
16'644 18'253
19'445 38.3%
-11.7%
6.5% 0.6%
5.7%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
0
5'000
10'000
15'000
20'000
25'000
2010 2011 2012(e) 2013(f) 2014(f)
Production value Growth rate
4'148 3'904 4'197
4'704 5'065
31.1%
-5.9%
7.5%
12.1% 7.7%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
0
1'000
2'000
3'000
4'000
5'000
6'000
2010 2011 2012(e) 2013(f) 2014(f)
Production value
Growth rate
MACHINERY INDUSTRY IN TAIWAN
20
Table 10. Major indexes of Taiwan’s IC packaging & testing industry
2008 2009 2010 2011 2012
Number of manufacturers 37 37 37 37 35
Output value (NT$ 100 million) 3,500 3,164 4,148 3,904 4,197
Output value growth rate (%) -0.9% -9.6% 31.1% -5.9% 7.5%
Rank (worldwide market share) 55.2% 55.8% 53.0% 53.5% 56.6%
Rank (rank in the world) 1 1 1 1 1
Added value (NT$ 100 million) 1,799 1,621 2,111 1,878 2,203
Added value rate (%) 51.4% 51.2% 50.9% 48.1% 52.5%
Capital expenditures (NT$ 100 million) 756 421 933 847 869
Capital expenditures/output value (%) 21.6% 13.3% 22.5% 21.7% 20.7%
Number of R&D staffs (person) 3,297 3,258 3,796 3,755 3,850
R&D expenditures (NT$ 100 million) 91 89 108 113 126
R&D expenditures/output value (%) 2.6% 2.8% 2.6% 2.9% 3.0%
Number of employees (person) 90,081 83,531 93,972 91,520 92,300
Output value per employee (NT$ million) 389 379 441 427 455 Source of data: IEK, ITRI
In 2012, Taiwan IC packaging & testing industry’s output value accounted for 50 % of worldwide output value, allowing Taiwan
to be the leader of sector, followed by the US and Singapore. In the future, no one is likely to replace Taiwan’s position. IC
packaging & testing industry is considered a manufacturing industry and entails huge capital expenditures. Because of
economic growth slowed down, capital investments were conservative. All major packaging & testing corporations reduced
capital expenditures. In 2012, Taiwan packaging & testing manufacturers’ capital expenditures reached only NT$ 87 billion
(+2.6 %).
4.2. PRINTED CIRCUIT BOARD INDUSTRY
In 2011, Taiwan’s PCB industry grew sluggishly because the worldwide economic recession. The PCB industry advanced 2.6 %
and output value amounted to NT$401.1 billion. Since global economy remained at slow pace in 2012, intelligent mobile
phones, tablet PC, and ultrabook, which require PCB as main component, showed little growth. Therefore, domestic PCB
industry presented a slight increase of 3.73 % in 2012 and product value reached NT$416 billion. The industry is expected to
continue its growth but slow because of the bottleneck faced by electronic products’ growth. Therefore, Taiwan’s PCB industry
may rise 3.72 % in 2013, and 3.82 % in 2014.
Graphic 9. Printed circuit board market size
(NT$ million)
Source of data: IEK, ITRI
390'790
401'100
416'050
431'510
447'990 38.1%
2.6% 3.7% 3.7% 3.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
360'000
370'000
380'000
390'000
400'000
410'000
420'000
430'000
440'000
450'000
460'000
2010 2011 2012(e) 2013(f) 2014(f)
Production valueGrowth rate
MACHINERY INDUSTRY IN TAIWAN
21
4.3. PANEL DISPLAY INDUSTRY
Graphic 10. Large TFT LCD market size and trend
(US$ million)
Source of data: IEK, ITRI
After financial crisis occurred in 2008, end-users’ demands remained weak. Consequently, the country’s panel industry had a
hard time in expanding the market. In 2011, Japan’s earthquake and European debt issues beat the worldwide TFT LCD
market once again, forcing all panel manufacturers to cut down their capital expenditures and adjust their production
capacities before the economic recovery. As a result, Taiwan’s large TFT LCD output value dropped to US$25,621 million in
2011 (-15.2 %).
To survive, panel manufacturers formulated new strategies, and started to identify new markets and upgrade their products.
Manufacturers focused on the intelligent mobile phones and tablets so that major manufacturers such as AUO, CMI, CPT, and
Hannstar changed their 5-generation production process to manufacture small & medium size products. Since the increasing
demands from end-users, local small & medium TFT LCD market size rose 15.8 % to reach US$6.98 billion in 2012. Major
product line includes mobile phones, tablet PC, hand-held display, and car display. However, large panels remained weak.
Graphic 11. Small & medium size TFT LCD market size and trend
(NT$ million)
Source of data: IEK, ITRI
Small & medium size panel refers to 10-inch TFT LCD or smaller. The small & medium panels fitted with touch control feature
have attracted users’ attention and thus increase profits for manufacturers. Facing the issues of unsteady LCD cycle, huge
investment, and low gross profits, panel manufacturers continue to study the products with high added-value. Naturally, new
products panel manufacturers are competing in this new market. Therefore, small & medium size panels became the target to
the 1-generation and 2-generation panel factories.
30'205 25'621
31'856 34'363 35'322 30.6%
-15.2%
24.3%
7.9%
2.8%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
0
5'000
10'000
15'000
20'000
25'000
30'000
35'000
40'000
2010 2011 2012(e) 2013(f) 2014(f)Production valueGrowth rate
4'738
5'884
6'984 7'717
8'334
4.4%
19.5%
15.8%
9.5% 7.4%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
1'000
2'000
3'000
4'000
5'000
6'000
7'000
8'000
9'000
2010 2011 2012(e) 2013(f) 2014(f)
Production value
Growth rate
MACHINERY INDUSTRY IN TAIWAN
22
The year of 2011 marked a milestone for the transformation of small & medium size panel production line. Currently, panel
manufacturers are using 7~8 generation production lines to produce large size LCD and using 6-generation production line or
lower production lines to produce small & medium size panels. Meanwhile, touch control panels are becoming more popular.
All manufacturers are planning to produce huge quantity of new products efficiently and add high values to their new products
to increase their revenues. Now, manufacturers specialized in small & medium size panels are focusing on panels with touch
control feature.
4.4. GREEN ENERGY INDUSTRY
The value of local solar photoelectric industry reached NT$131 billion in 2012, -20 %, caused by the decreased subsidies,
excessive supply, and collapsed price. Battery was the major sub-industry, accounting for 66.3 % of output value, followed by
22.2 % of silicon wafer, 7.3 % of solar photoelectric module, and 2.8 % of system manufacturers. At the moment, Taiwan silicon
waster industry occupies 8.5 % of worldwide production, solar battery industry comprises 15.7 %, and module industry 2.6 %.
Presently, Taiwan’s solar batteries are very competitive in the world market. In 2012, Europe remained the major market
although the European market continues to grow slowly. China, the US, Japan, and India markets grew substantially.
However, demand was unable to catch up with the excessive production and the decreased subsidies by European nations.
Therefore, demand fell although prices have dropped to an unprecedented level. The output value decreased slightly in 2012
and is expected to grow steadily with the industry’s cost advantages in 2013.
Graphic 12. Solar photoelectric industry’s development and market trend
(NT$ million)
Source of data: IEK, ITRI
LED component prices slumped throughout the whole year because of excessive production and oversupply. Faced with the
tough business environment, manufacturers had a hard time running their businesses. With a slow recovery of global economy,
local LED component output value grew steadily and amounted to NT$89.2 billion (+8 %) in 2012.
206'200
164'000
130'500 145'000
155'000
0
50'000
100'000
150'000
200'000
250'000
2010 2011 2012(e) 2013(f) 2014(f)
MACHINERY INDUSTRY IN TAIWAN
23
Graphic 13. LED component industry’s development and market trend
(NT$ million)
Source of data: IEK, ITRI
4.5. 3C INDUSTRY
Table 11. 3C industry’s development and market trend
Million units
Shipments/Industries 2011 2012 2013 Trend
PC 56.7 57.5 57.4 In 2011, shipments grew 3.8 % only due to
Sandy Bridge chip design defects. In 2012,
shipments grew 1.4 % because the newly
developed markets’ demands increased
slightly.
NB 173.3 191.9 220.5 In 2011, shipments grew 13.3 % because of
economic downturn and decreased demands
worldwide. Ultra-thin NB is becoming more
popular than ever. Shipments grew 10.7 % in
2012.
Mother Board (MB) 120.2 119.0 118.5 In 2011, Taiwan’s MB shipments grew 7.6 %,
better than the whole industry’s performance.
Market demands of MB decreased in 2012,
while other countries’ manufacturers were
penetrating into the market. Consequently,
shipments decreased 1 %.
Mobile phone 90.4 102.6 112.9 In 2011, Taiwan brand intelligent mobile
phones were accepted by consumers and
thus shipments grew 25.9 %. In 2012, the low-
price intelligent mobile phone OEM purchase
orders increased steadily. As a result,
shipments grew 13.6 %.
Digital camera 61.8 57.1 59.5 In 2011, low-scale OEM purchase orders grew
steadily so the growth rate reached 0.7 %,
better than the worldwide growth rate of -2.3
%. In 2012, manufacturers were unable to
receive high-scale DSC (exchangeable lens)
purchase orders, so the shipments decreased
7.6 %, much lower than the worldwide growth
rate of 4.0 %.
LCD Monitor 115.8 115.7 115.0 In 2011, commercial models and newly
developed markets’ growth rates weren’t
90'424 82'625
89'235 95'920
102'344
0
20'000
40'000
60'000
80'000
100'000
120'000
2010 2011 2012(e) 2013(f) 2014(f)
MACHINERY INDUSTRY IN TAIWAN
24
satisfactory. Coupled with the downturn of
European market and the US market, -1.0 %.
In 2012, thanks to the growth of emerging
markets, shipments decreased less than
expected.
LCD TV 47.9 58.2 65.4 In 2011, the US and Europe economy
remained weak and market saturated.
Shipments grew 6.7 % only. In 2012, LCD TV
shipments rose 21.5 % due to increasing
demands by local and European markets. Source of data: IEK, ITRI
Graphic 14. PC shipment and growth
(million units)
Source of data: IEK, ITRI
Companies did not buy as many new PCs to replace old PCs as expected, while demands from students are unable to increase
revenues substantially. Moreover, Intel’s new products did not dominate the market. PC shipments are expected to fall in 2013
and 2014.
Graphic 15. NB shipment and growth
(million units)
Source of data: IEK, ITRI
OEM manufacturers received ultrabook purchase orders. Taiwan’s NB industry is growing steadily. As compared to previous
years, growth rate decreases due to economic downturn. Saturated markets are unlikely to grow. Recently, manufacturers are
developing new markets. However, foreign competitors are penetrating into the NB market at the same time and threatening
Taiwan’s NB industry.
54.6
56.7
57.5 57.4
56.5
18.4%
3.8% 1.4%
-0.2% -1.6%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
53
53.5
54
54.5
55
55.5
56
56.5
57
57.5
58
2010 2011 2012(e) 2013(f) 2014(f)
Shipment
152.9
173.3 191.9
220.5
249.9
21.9%
13.3%
10.7%
14.9% 13.3%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
0
50
100
150
200
250
300
2010 2011 2012(e) 2013(f) 2014(f)
ShipmentGrowth rate
MACHINERY INDUSTRY IN TAIWAN
25
Graphic 16. MB shipment and growth
(million units)
Source of data: IEK, ITRI
With a leading position, local MB manufacturers are flexible when they make decision between costs and profits. In China, MB
manufacturers know the market, culture, and consumers’ preference better than anyone else. Therefore, Chinese MB
manufacturers are considered as the major challengers for Taiwan’s MB manufacturers.
Graphic 17. Mobile phone shipment and growth
(million units)
Source of data: IEK, ITRI
Demands from the US and European markets for Taiwan-brand intelligent mobile phones are increasing steadily and have
thus triggered shipments to grow rapidly. Major foreign mobile phone brands are interested in the potential of low-priced
mobile phone in Asian markets, and favor Taiwan’s OEM manufacturers for production. Originally, local OEM manufacturers
focused on feature-type mobile phones, but now, they focus on low-scale intelligent mobile phones.
111.7
120.2 119 118.5
117.5
4.7%
7.6%
-1.0% -0.4% -0.8% -2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
106
108
110
112
114
116
118
120
122
2010 2011 2012(e) 2013(f) 2014(f)ShipmentGrowth rate
71.8
90.4
102.6 112.9
122.5
13.8%
25.9%
13.6%
10.3%
3.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0
20
40
60
80
100
120
140
2010 2011 2012(e) 2013(f) 2014(f)
Shipment Growth rate
MACHINERY INDUSTRY IN TAIWAN
26
Graphic 18. Digital camera shipment and growth
(million units)
Source of data: IEK, ITRI
Since exchangeable lens have been integrated into low-priced mobile phones and meanwhile exchangeable lens’ prices have
dropped significantly, DSC OEM purchase orders are more likely to be transferred to Taiwan’s manufacturers. Low-scale DSC
is forecast to lose its popularity in the market after the intelligent mobile phones’ snapshot features are upgraded.
Graphic 19. Taiwan’s LCD monitor shipment and growth
(million units)
Source of data: IEK, ITRI
Most products are fitted with medium or low scale LCD monitors. Manufacturers reduce prices to attract consumers’ attention
in the newly developed market. Hand-held produces, such as able PC and NB, are replacing PC. The industry has matured and
thus market growth starts to slow down. Most OEM manufacturers are under cost pressure.
61.4 61.8
57.1
59.5
61.6
23.5%
0.7% -7.6%
4.2% 3.5%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
54
55
56
57
58
59
60
61
62
63
2010 2011 2012(e) 2013(f) 2014(f)
Shipment
117
115.8 115.7
115 114.8
5.2%
-1.0%
-0.1% -0.5% -0.2%
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
114
114.5
115
115.5
116
116.5
117
117.5
2010 2011 2012(e) 2013(f) 2014(f)ShipmentGrowth rate
MACHINERY INDUSTRY IN TAIWAN
27
Graphic 20. LCD TV shipment and growth
(million units)
Source of data: IEK, ITRI
Faced with Korean manufacturers’ fierce competition, Japan’s manufacturers have lost their competitive edge and thus
transfer OEM purchase orders to Taiwan’s manufacturers. LCD TV market has matured. It is unlikely to see 2-digit growth rate
in this market. The US market and European market comprise 50 % and 20 % of Taiwan’s shipments, respectively. Both
markets are not expected to recover in the coming future.
44.9 47.9
58.2 65.4
73.5 71.2%
6.7%
21.5%
12.3% 12.4% 0%
10%
20%
30%
40%
50%
60%
70%
80%
0
10
20
30
40
50
60
70
80
2010 2011 2012(e) 2013(f) 2014(f)
Shipment Growth rate
MACHINERY INDUSTRY IN TAIWAN
28
5. Machine tool industry
5.1. INDUSTRY OVERVIEW
In Taiwan, most machine tool manufacturers are small & medium businesses. According to the Taiwan Association of
Machinery Industry (TAMI), there are 1,487 manufacturers in Taiwan. In 2012, the production value of machine tool industry
reached NT$164 billion and profit ratio reached 8 %, with employees about 30,000 and salaries of NT$14.57 billion. Annual
revenue created per person reached NT$5.2 million. 115 machine tool manufacturers are engaged in R&D with the
expenditures of NT$1.365 billion. Manufacturers have spent NT$31 million to buy technologies.
The country’s machine tool industry is export-oriented. 75% of machine tools are exported. Taiwan is the world’s 4th largest
exporting nation. China became the biggest export market for Taiwan’s machine tool industry. Thanks to the ECFA signed
between Taiwan and China, and Europe’s and the US’s increasing demand, Taiwan’s machine tool export value remained
worldwide the 4th largest in 2012. Major markets include automobile/motorcycle, molds, marine transportation, and 3C
industry.
5.2. INDUSTRIAL DEVELOPMENT AND TREND
Industrial development
The island 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 have successfully boosted the industry's performance and
technological expertise. Further, local manufacturers that in the past chiefly supplied domestic machine assembly companies
have been successful in developing international markets. The government's large-scale support of the sector along with the
steady effort of companies has helped domestic machinery industry to accumulate notable capabilities in R&D, manufacturing
and marketing.
The local machine tool industry has also helped fuel growth of other sectors, particularly the ICT and consumer electronics
industries. For example, the 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.
Industrial structure
Worldwide machine tool industry has developed for decades. Japan, Germany, and China represent more than 50 % of the
share in global machine tool market. Most precision machine tools are manufactured by Japan and Germany. Taiwan supplies
5 ~ 6 % of machine tools in the world. Korea has the same market share as Taiwan. Italy and China are major competitors for
Taiwan.
The island’s products compete against Japanese and German technology at the higher price levels, and face low price
competition from China at the lower end of the market. In response to these challenges, local machine tool firms are
continually evaluating market needs, using product differentiation strategies and developing products that fit market niches.
Taiwan’s machine tool manufacturers have established a self-sufficient cluster in Taichung area – from ball screw production
to machine tool assembly. Now, Taiwan is the 3rd largest ball screw exporter of the world. Taiwan’s general processing-machine
output value has reached NT$60 billion and thus Taiwan is a major supplier of general processing-machines of the world.
Taiwan-made general processing-machines are exported to China, the US, and Turkey. However, Taiwan’s machine tool
industry still lacks the capability to produce closed-type CNC controllers; feed shaft and server system remain to be upgraded.
5-year production statistics (including domestic and overseas)
In 2011, machine tool output value reached NT$ 164.2 billion (+24.6 %). The demand of machine tools continued to grow from
2010. Then, the European debt issues occurred in the second half of 2011. As a result, the entire European market was exposed
to the risks arising from the unsolved debt issues. US government implemented an economic revival plan and Congress passed
MACHINERY INDUSTRY IN TAIWAN
29
the ceiling of debts. Meanwhile, US manufacturing industries were restructured. Nevertheless, the US market remained
inactive in the second half of 2011. Therefore, Europe and US markets are unlikely to grow and, to the worse extent, Europe
and US markets are most likely to grow slower than Asian market.
In 2012, local machine tool output value reached 164.2 billion with an annual growth rate 1 %. China has started to optimize its
import structure and thus concentrate on equipments with high value-added and high technological capabilities. It is,
therefore, very important to watch closely the products distributed by Europe, US, and Japan in the China market as well as
their sales strategies, such as “high-scale models sold at low prices” and “highly priced models”.
In 2012, the output value of Taiwan-made machines sold in China accounted for 25 % of machinery product exports. Moreover,
it is important to note that China is likely to tighten its market demands and will hamper exports of Taiwan-made machine
tools severely. Furthermore, Korea has signed FTAs with the US and with Europe. Thus, Korea’s manufacturers benefit from
duty-free business when exporting machinery equipment to Europe and the US. Taiwan exports US$4 billion – 5 billion worth
of machinery equipments to Europe and USA each year, including US$800 million worth of machine tools. Europe and USA
impose import tariffs of 2 – 5%, which means Taiwan will be asked to cut 2 – 5 % of price to offset import tariffs when
exporting to Europe and the US. Apparently, Korea’s FTA has a significant impact on the island’s machine tool exports.
Graphic 21. Taiwan-made machine tool market (including domestic and overseas markets)
(NT$ million)
Source of data: IEK, ITRI
Industrial cluster
In Taiwan, the machine tool industry originated in Taichung. Li Wei, founded in 1980, was the first Taiwan machine tool
manufacturer implementing a labor-division strategy and thus integrated satellite factories to process machine tools. That was
how an industrial cluster was created in Taichung. Later on, a labor-division network was created in Taichung; forging, sheet
metal, heat-processing, grinding, polishing, coating, assembly, tests, and sales were handled by center factory and satellite
factories. Meanwhile, a backup system was established in Taichung to facilitate the labor-division between various factories.
The center factory and satellite factories are close to each other. Thus, transaction costs are minimized and all factories can
learn from each other and transfer techniques easily. Most importantly, the industrial cluster allows customers to purchase
products at one stop without traveling long distance to visit different factories. According to the Machine Tool & Component
Manufacturer Association, there are at least 1,500 machine tool & component factories in Taiwan, plus countless small
processing factories.
Machine tool comprises a number of components, such as base, workbench, transmission, feed, spindle, control, lubrication,
and cooling modules. Taiwan’s machine tool industrial chain has developed a comprehensive value chain comprising R&D and
design, component processing & manufacturing, whole machine assembly, tests, and sales. In general, Taiwan’s machine tool
industry has established a comprehensive labor-division network and thus maintains its competitive edge in the international
market. Nonetheless, its tool industry has to upgrade sales services and improve CNC controller’s performance in order to
upgrade its competitiveness to a higher level. Currently, complete system plants are outsourced to other manufacturers to
produce components in order to cut down their costs. As a result, a number of module factories are growing rapidly in recent
years. Their scales and revenue have reached the same level as the complete system plants.
131'807
164'210 164'247 166'583 168'919 85.53%
24.58%
0.02% 1.42% 1.40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
20'000
40'000
60'000
80'000
100'000
120'000
140'000
160'000
180'000
2010 2011 2012(e) 2013(f) 2014(f)Production valueGrowth rate
MACHINERY INDUSTRY IN TAIWAN
30
The industrial cluster is beneficial to innovation and technological expansion. Public R&D institutes moved to Taichung one
after another. The government plays an important role for central Taiwan’s industrial innovations. With government’s support,
R&D institutes have executed a number of R&D plans, and meanwhile, served as the bridge between industries and academic
research institutes and have thus trained a number of researchers as well as new businesses. In general, central Taiwan’s
machine tool cluster has a high level of entrepreneurial spirit. New businesses are established one after another by experienced
employees. However, the cluster lacks the know-how to develop revolutionary technologies. It is difficult for central Taiwan’s
industrial cluster to attract venture capital industry. Therefore, manufacturers have to raise fund on their own for their
businesses.
Graphic 22. Industrial cluster of machine tool
A unique and complete supply chain
Customers are able to get any parts of a machine within a 60 km radius
The production of Taiwan’s machine tool is effective, cost saving and able to maintain a good quality/price ratio.
Challenges to cluster development
Taichung cluster faces a number of issues such as: (1) low level of product differentiation, low grade of products, and South
Korea and China’s price competition; (2) dependence on import of key components such as controller, bearings, and bearing.
Technical know-how remains to be upgraded. (3) the great majority of manufacturers are small & medium businesses, short of
innovation, R&D, and system integration capabilities; (4) low level of mutual dependence between component manufacturers
and complete system plants, weakening the efficiency of CSD system; (5) manufacturers are moving to foreign countries. A
number of complete system plants and component manufacturers have transferred the cluster know-how to China; (6)
machine tools are considered traditional industry. College graduates are unwilling to join the machine tool industry. This
industry lacks R&D staffs and technicians, especially electric & mechanical integration, value-added software design, and
fundamental technology staffs; (7) machine tools are distributed through agents. It is, therefore, difficult to provide customers
with highly value-added system; and (8) Taiwanese manufacturers are returning to Taiwan from China and meanwhile other
manufacturers are expanding their factories. As a result, land prices are soaring.
Subcontractors’ skills are indispensable for Taichung’s machine tool cluster. However, small-sized manufacturers lack R&D
capabilities. Consequently, the cluster has a hard time upgrading technological know-how. Secondly, Taiwan focuses on
general processing-machines that require a low level of technological know-how. The dependence on low level of technological
know-how obstructs technological advancement. Now, China has begun to imitate Taiwan’s machine tool clusters. Meanwhile,
many Taiwanese subcontractors have set up factories in China and have thus reduced their dependence on the complete
system plants in Taichung. These moves are weakening the cluster’s labor-division network. Therefore, how to help
subcontractors upgrade their technological capabilities and how to create competitive edge for the parent factories remain the
most important tasks for Taichung’s industrial cluster.
MACHINERY INDUSTRY IN TAIWAN
31
6. Hi-tech equipment industry
6.1. SEMICONDUCTOR-MANUFACTURING EQUIPMENT INDUSTRY
Industry overview
Semiconductor technologies were brought to Taiwan in 1974. UMC established the first 4-inch Fab in 1980. Later on, TSMC
and VIS were founded. Since then, Taiwan manufacturers have become the leading chop OEM manufacturers of the world. In
Taiwan, semiconductor industry is the first industry having output value more than NT$1 trillion. The semiconductor industry
has made a remarkable contribution to Taiwan’s economic growth. Taiwan-made IC chops are needed everywhere nowadays.
Semiconductor production entails huge capital and latest technologies. Manufacturers compete with each other fiercely. In the
past, semiconductor industry integrated the manufacturing sector and packaging & testing sector. Now, this industry is
integrating the equipments and materials, especially the manufacturing equipments. When the industry started, companies
focused on only production. Foreign manufacturers controlled the process technologies. Consequently, local manufacturers
earned OEM profits only. Currently, domestic manufacturers have begun to integrate process equipments into their production
lines and have thus controlled the most critical manufacturing technologies.
On the island, there are approximately 30 semiconductor process equipment manufacturers. Manufacturers employ 5,000
staffs/workers. R&D expenditures constitute 7.4 % of revenue. The three major manufacturers (including OEM) account for 47
% of the industry’s output value. Major products include thin-film deposition apparatus, dry-etching equipment, and
chemical/mechanical drilling equipment, as well as wet process cleaning equipments and measurement/testing equipments.
Most products are sold to Taiwan’s semiconductor manufacturers and packaging & testing manufacturers.
Industrial development and trend
Taiwan’s semiconductor industry adopted packaging & testing technologies in 1966 and has thus begun to grow. In 1980, UMC
established the first 4-inch Fab in Taiwan. Meanwhile, machinery manufacturers started to exchange the technologies related
to packaging/testing and equipments with semiconductor manufacturers. In 1987, TSMC established the first 6-inch Fab in
Taiwan and has thus shaped an OEM model since then. In the early 1990s, Taiwan’s semiconductor manufacturers established
6-inch Fabs one after another. In 1994, VIS set up the first 8-inch Fab in Taiwan. Meanwhile, manufacturers began to switch
from parts cleaning & repair and packaging equipment online control to precision packaging & testing equipments and
certifications.
In 2000, Promos and VIS focused on DRAM and OEM. The semiconductor equipment industry began to switch to process
equipments. After UMC established the first 12-inch Fab and SoC Alliance was founded in 2000, IC industry switched to chip
design. Meanwhile, manufacturers started R&D and began to produce semiconductor-manufacturing equipments. At this time,
Taiwan’s semiconductor industry has developed a comprehensive industrial chain.
Despite its long history of semiconductor manufacturing industry, local equipment manufacturers still lack the technologies
required by process equipments and are, therefore, not ready to manufacture process equipments yet. Nonetheless, the
equipment manufacturers can supply a portion of wet process equipment, packaging equipment, and measurement equipment
using their own technologies. The country’s manufacturers produce highly technical equipment in the capacity of OEM
manufacturers for foreign manufacturers. In general, the semiconductor equipment industrial chain is pretty much self-
sufficient.
5-year production statistics (including overseas and domestic markets)
In 2010, domestic semiconductor equipment’s output value reached NT$ 40.7 billion, +130 %, because of the recovery of the
worldwide economy after the financial crisis. In 2011, hand-held intelligent devices and tablet PC sales grew dramatically, the
demands of processors, memories, and chips grew substantially so that semiconductor manufacturers expanded their
production capacities, triggering the demands of semiconductor process equipments to grow. Local semiconductor
equipment’s output value reached NT$ 46.5 billion, +14.23 %.
MACHINERY INDUSTRY IN TAIWAN
32
In 2012, European economy remained inactive and domestic semiconductor manufacturers took a conservative stance in the
market. Moreover, high-scale process equipments were not the major concern to local equipment manufacturers. Taiwan
semiconductor’s output value dropped to NT$38.1 billion, -18.05 %. Looking forward, Taiwan’s equipment manufacturers are
expected to start producing TSV process-related equipments, and the output value is likely to reach NT$ 40.6 billion, +6.42 %
in 2013.
Graphic 23. Semiconductor-manufacturing equipment market (including overseas & domestic markets) trend
(NT$ million)
Source of data: IEK, ITRI
Industrial cluster
Most of Taiwan’s semiconductor equipment manufacturers are located in northern Taiwan including 25 manufacturers, about
70 % of all manufacturers. There are 6 factories (20 % of total manufacturers) in southern Taiwan, while 4 companies (10 % of
total) are located in central island. Northern Taiwan’s manufacturers are specialized in expansion equipments, inspection
equipments, and packaging & testing equipments. Years ago, some manufacturers acted as agents or OEM manufacturers for
foreign manufacturers and have thus learned the related technologies in deposition equipments, photo-resist equipments,
exposure & developing equipments, and dry-etching equipments. Since those equipments are higher than other process
equipments, northern Taiwan manufacturers’ output values amounted to NT$ 40.9 billion, constituting 88 % of the industry’s
total output value.
In central Taiwan, despite the absence of panel-manufacturing industrial cluster, equipment-manufacturing factories and R&D
facilities have been set up here for a long time. Presently, central Taiwan manufacturers’ output value reaches NT$3.72 billion,
accounting for 8 % of the industry’s total output value. The production value of companies in southern Taiwan reaches
NT$1.86 billion with only 4 % of total.
6.2. PANEL DISPLAY PRODUCTION-EQUIPMENT MANUFACTURING-INDUSTRY
Industry overview
Taiwan has progressively developed the panel display industry in the last decade or so. All sizes of panel display, such as
mobile phone screen, computer screen, and TC panels, are everywhere in daily lives. Panel production entails huge capital and
precision technologies. Therefore, integration is an important topic for this industry. In the past, upstream manufacturers,
midstream manufacturers, and downstream manufacturers were integrated. At present, manufacturers have moved one step
further to integrate equipments and materials. Currently, Samsung and LG are the world’s top two panel manufacturers. Faced
with fierce competition and decreased profits, both manufacturers are switching to vertical integration in order to minimize
production costs and meanwhile control technologies. Apparently, process equipments are becoming more and more
important for the next-generation display-manufacturing industry.
Taiwan’s panel industry started from panel production. Later on, manufacturers switched to integrate materials and
equipments. Now, Taiwan’s manufacturers focus on the less complicated equipment and are unable to produce process
equipment. Korea is self-sufficient in terms of process equipment. Therefore, Taiwan relies on Japan, Europe, and US for the
critical process equipment.
40'783
46'588
38'178 40'630 42'113
130.48%
14.23%
-18.05%
6.42% 3.65%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
0
5'000
10'000
15'000
20'000
25'000
30'000
35'000
40'000
45'000
50'000
2010 2011 2012(e) 2013(f) 2014(f)Market valueGrowth rate
MACHINERY INDUSTRY IN TAIWAN
33
In Taiwan, there are approximately 200 display-process equipment manufacturers in Taiwan with employees of 29,817. Their
R&D expenditures comprise approximately 7.1 % of their sales. The top three manufacturers contribute approximately 35 % of
this industry’s total output value. Major products include inspection equipments and automation equipments. Most customers
are panel manufacturers in Taiwan; most products are sold in Taiwan, too. In recent years, however, Taiwan’s panel
manufacturers moved their module factories to China and have sold their machines and equipments to China; some
production-equipment manufacturers set up factories in China to sell production-equipments to Chinese manufacturers
directly.
Industrial development and trend
The panel display-production manufacturers have established a cluster as time passed by. In the beginning, Taiwanese acted as
agents that imported Japan’s machines for sale and provided maintenance services. Later on, they switched to manufacturing
modules and automated machines that required low level of technologies. At that time, Taiwan’s manufacturers lacked the
technologies to produce Array and Cell process equipments. The manufacturers acted as either agents or OEM manufacturers
for Japan’s manufacturers and have thus acquired technologies from Japan via technical transfer. Presently, local
manufacturers have developed their R&D capabilities and are capable of producing upstream production equipments,
midstream equipments, and downstream equipments that are required by domestic manufacturers of panel display
production.
There are 60 manufacturers specialized in upstream process equipments; 55 manufacturers are involved in midstream process
equipments. Manufacturers focus on the less complicated process equipments, such as cleaning equipments, inspection
equipments, and automatic shipment equipments. They are short of the precision technologies and, therefore, have to import
exposure equipments, developing equipments, and dry-etching equipments from Japan. In recent years, however, local panel
process equipment manufacturers’ revenue has decreased due to economic downturns.
The LCD manufacturing-equipment manufacturers are planning to develop the precision process equipment, such as oxide
transistors, touch-control screen-manufacturing equipments, and organic light-emitting diodes (AMOLED) display-
manufacturing equipment, allowing panel manufacturers to upgrade their process technologies and manufacture products in
the island without importing from foreign countries.
5-year production statistics (including overseas and domestic markets)
In 2010, thanks to the economic revival after the worldwide financial crisis, the display-manufacturing equipment industry’s
output value reached NT$ 58.7 billion (+121 %). In 2011, it was unlikely to grow significantly. Nevertheless, intelligent hand-
held devices and tablet PC market continued to grow. Thus, the small & medium panel production line’s production capacities
grew moderately. As the result, annual LCD-manufacturing equipment industry’ output value reached NT$ 64.3 billion (+9.6
%).
For 2012, European economic growth remained uncertain and Taiwan’s panel manufacturers were conservative in the market.
LCD output value dropped to NT$46.9 billion (-27.17 %) because Europe, USA, and Chinas’ markets are unable to grow as
expected. In 2013, some panel manufacturers are likely to produce organic light-emitting diodes (AMOLED) displays using
LCD production lines. The equipment industry’s output value is likely to reach NT$ 47.7 billion (+1.80 %).
MACHINERY INDUSTRY IN TAIWAN
34
Graphic 24. Panel display production-equipment market trend
(NT$ million)
Source of data: IEK, ITRI
Industrial cluster
Most panel display production-equipment manufacturers are located in northern Taiwan, serving the display manufacturers in
northern Taiwan. An industrial cluster was created in this area. Plus equipments and critical component manufacturers, there
are approximately 100 manufacturers, consisting 50 % of total manufacturers across the island. Northern Taiwan has most
manufacturers specialized in modules and automation, followed by southern Taiwan. A number of southern area’s
manufacturers were machinery manufacturers years ago. They switched to manufacturing panel display production-
equipments for the panel manufacturers located in Tainan Science-based Industrial Park.
A number of manufacturers provide modules and automation equipments for the upstream, midstream, and downstream
process equipments. In central island, manufacturers produced machinery equipment at beginning, and later on, they started
to manufacture panel production-equipments. Nevertheless, machinery industry remains the major industry in central Taiwan.
Therefore, the major manufacturers chose not to move out of central Taiwan. There are approximately 40 manufacturers in
central Taiwan; about 20 % of local manufacturers are there, specialized in Array, Module, and automation process. Just a few
manufacturers are specialized in the equipment required by Cell process.
The output value of manufacturers in northern area reaches approximately NT$46.5 billion, accounting for 68.4 % of total
industrial output value. There is no panel-manufacturing factory in central Taiwan and thus there is no cluster effect in central
Taiwan. Nevertheless, equipment manufacturers set up their R&D facilities in central Taiwan long time ago. Therefore, central
Taiwan manufacturers’ output value reaches approximately NT$13.6 billion, comprising 20.1 % of total output value. There are
a number of manufacturers in southern part. However, they are unable to compete with companies in northern and central
areas in terms of prices and shipments. In short, southern Taiwan manufacturers’ output value reaches NT$7.7 billion,
accounting for 11.5 % of total output.
58'687
64'336
46'855 47'696 49'436
121.11%
9.62%
-27.17%
1.80% 3.65%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
140.00%
0
10'000
20'000
30'000
40'000
50'000
60'000
70'000
2010 2011 2012(e) 2013(f) 2014(f)
Market value Growth rate
MACHINERY INDUSTRY IN TAIWAN
35
7. Robot industry
7.1. INDUSTRY OVERVIEW
Robots are designed to complete tasks in dangerous, dirty, hard, and monotonous workplaces. There are many types of robots:
unitary axial robots, Cartesian coordinate robots, SCARA robots, parallel-structured robots, and multi-joint robots. Robot
comprises following critical modules: 1. mechanism module such as coupler/gear, bearing, linear slide/screw, end effectors; 2.
control module such as PC-based, PLC, industrial computers; 3. driving module such as motor, decelerator, and driver; and 4.
sensor modules such as vision sensor, distance sensor, kinetic sensor, and other sensors.
On the island, most robot-related manufacturers are located in northern Taiwan and central Taiwan. Most robots are
manufactured by automatic component factories, system factories, machinery factories or agent. Local manufacturers are
capable of producing unitary axial robots and vertical coordinate robots, and have to rely on foreign countries for higher-scale
robots.
A few manufacturers and research institutes have begun to develop high-scale robots. However, Taiwan has to import critical
components (e.g. server motor, controller, decelerators) from foreign countries. Thus, production costs become too high. To
the worse extent, domestic users are reluctant to use Taiwan-made robots that have not been proven successful yet. Therefore,
local robot manufacturers prefer to act as agents to distribute imported robots.
7.2. INDUSTRIAL DEVELOPMENT AND TREND
Industrial development
The automation industry has gone through three phases: low-cost automation, production automation, and industrial
automation. In the low-cost automation phase (before 1982), domestic complete system plants and critical component
factories started to manufacturer industrial robots. In the production automation phase (1983 ~ 1989), the government
implemented automation-related policies. Meanwhile, automation manufacturers were founded one after another. In
industrial automation phase I (1990 ~ 1999), labors’ awareness grew dramatically and meanwhile labor shortage worsened. As
a result, many automation manufacturers were established. In industrial automation phase II (2000 ~ 2011), China’s labor
issues drew manufacturers’ attention and thus manufacturers understood the importance of automation once again. Most local
manufacturers are capable of developing and manufacturing automation equipments with proven export records.
Industrial structure
Most manufacturers in the country act as importing agents for foreign-brand robots; a handful of manufacturers focus on
unitary axial robots or Cartesian coordinate robots, SCARA robots, and parallel-structured robots; few manufacturers are
involved in multi-joint robots. Research institutes are, therefore, expected to design and develop multi-joint robots for
industrial use. Locally, a handful of manufacturers are capable of controlling and executing the motions of mechanism
modules, control modules, driving modules, and sensor modules that are required by the simple-type industrial robots. The
manufacturers are capable of producing most critical components, such as linear slides, lead screws, end effectors, PC-based,
PLC, industrial computers, motors, decelerators, drivers, and various sensors. However, domestic manufacturers lack the
know-how needed for controllability, product precision, and durability. Therefore, they have to import components.
5-year production statistics (including overseas and domestic markets)
In 2010, Taiwan needed 3,290 robots. In 2011, 4,000 robots are required (+22 %). Quantities increased to 4.280 in 2012,
4,580 in 2013, and 4,900 in 2014. The annual growth rate reached 7 %. Take the 3,290 robots required in 2010 for example,
most robots were used by clean rooms (33 %), followed by shipment operations (30 %) and welding (18 %). Most robots were
used for substrate or semiconductor processing and shipment. Presently, robots are being used by various industries, such as
automobile-manufacturing industry and critical component-welding.
MACHINERY INDUSTRY IN TAIWAN
36
Graphic 25. Industrial robot market demand
Source of data: IEK, ITRI
Local manufacturers have made an outstanding development record of unitary axial robots and Cartesian coordinate robots. In
2010, Taiwan exported 25,335 robots, amounting to NT$1.759 billion; China was the biggest buyer with 11,363 robots (45% of
Taiwan’s export). Hong Kong bought 2,437 robots (10% of total exports). In 2011, however, exports dropped to 18,011 robots.
Surprisingly, exports rose to NT$ 2.31 billion. Apparently, unit prices grew sharply. In 2012-2014, robot growth is expected to
grow continually. In 2014, 21,451 robots are expected to be exported at an amount of NT$ 2.749 billion.
Graphic 26. Industrial robot annual export (value & quantity)
(NT$ 1,000)
Source of data: IEK, ITRI
In 2010, Taiwan imported 2,906 robots, amounting to NT$ 5.219 billion. Japan, the most important sourcing nation, sold
1,886 robots to Taiwan (65 % of total imports), much more than others. In 2011, imports grew to 3,895 robots, but the amount
dropped to NT$3.312 billion. Electronic/Electric & Mechanical industries require small & medium size robots. In 2012 ~ 2014,
exports are expected to grow continuously. 4,639 robots are expected to be exported in 2014 and amounting to NT$3.944
billion.
3'290
4'000 4'280
4'580 4'900
0
1'000
2'000
3'000
4'000
5'000
6'000
2010 2011 2012(f) 2013(f) 2014(f)
Units
1'758'607
2'308'059 2'446'543
2'593'335 2'748'935 25'335
18'011 19'092 20'237 21'451
0
5'000
10'000
15'000
20'000
25'000
30'000
0
500'000
1'000'000
1'500'000
2'000'000
2'500'000
3'000'000
2010 2011 2012(f) 2013(f) 2014(f)Export valueExport units
MACHINERY INDUSTRY IN TAIWAN
37
Graphic 27. Industrial robot’s annual import (value & quantity)
(NT$ 1,000)
Source of data: IEK, ITRI
In northern Taiwan, manufacturers focus on the critical components that are required by robot industrial chains, such as
industrial computers, motors, and sensors. Most manufacturers are well established with sufficient operation funds. In central
island, manufacturers have developed a comprehensive supply chain and focus on unitary axial robots and Cartesian
coordinate robots, and are capable of exporting robots to overseas markets, especially China. In southern area, plastic
machinery manufacturers especially need robots. A handful of machine tool manufacturers have developed the technical know-
how for this newly developed business opportunity.
With its comprehensive supply chain and sufficient machinery/electric & mechanical/electric control manpower, central
Taiwan is the most important region in Taiwan in terms of machinery industry development. Central Taiwan’s infrastructure is
the most important asset for robot industry development with respect to robot-related technologies and system services.
Industrial robot factories can provide unitary machines to help machine tools and plastic machines to upgrade product’s
added-value. For example, industrial robots are valuable tools for material shipment and pick-and-place, allowing factories to
manufacture products faster than ever and meanwhile avoid all possible negligence and dangers. Moreover, industrial robots
are indispensable tools for automating production units and production lines.
Government and manufacturers have to allocate more resources for R&D in order to minimize costs and increase profits for
local component production, such as server motors, controllers, and decelerators. Thus, the nation does not have to rely on
foreign countries for the critical components and thereby supply industrial robots at lower prices.
5'219'397
3'311'709 3'510'411 3'721'036
3'944'298
2'906
3'895 4'129 4'376
4'639
0
500
1'000
1'500
2'000
2'500
3'000
3'500
4'000
4'500
5'000
0
1'000'000
2'000'000
3'000'000
4'000'000
5'000'000
6'000'000
2010 2011 2012(f) 2013(f) 2014(f)
Import value
MACHINERY INDUSTRY IN TAIWAN
38
8. Mechanical critical components
8.1. INDUSTRY OVERVIEW
There are four ball screw manufacturers, including HIWIN Technologies, Taiwan Ball Screw Industry, PMI Precision Motion
Industries, Inc., and Lu Tin Technology. Four manufacturers control more than 90 % of the industry’s total output value and
are specialized in transmission components, such as ball/roller screws, and linear slides. Their average gross margin rate
reaches 30 %. Their R&D costs represent 5~10% of their sales revenues. According to the manufacturers, Taiwan had to
purchase the raw materials of ball screw from foreign countries years ago. Now, China Steel Corporation provides 60 ~ 70% of
raw materials that are needed by local manufacturers for producing medical equipments, semiconductors, 3C products,
automation products, green products, and precision machine tools.
Most Taiwanese ball screw manufacturers were reluctant to release their sales figures publicly, so that ball screw’s output
values were estimated. Domestic ball screw industry’s output value was estimated NT$6.873 billion in 2010, and NT$8.061 in
2011, +17.28 %.
Table 12. Ball screw industry’s output values in recent years
Unit: NT$ million
Year Net value Growth rate
2007 5,505.1 ---
2008 5,669.0 2.98%
2009 2,696.7 -52.43%
2010 6,873.5 154.89%
2011 8,061.1 17.28%
2012(e) 7,656.0 -5.03%
2013(f) 8,287.7 8.25%
2014(f) 8,919.3 7.62% Source of data: IEK, ITRI
8.2. IMPORT/EXPORT ANALYSIS
Taiwan ball screw industry’s import/export grew in the last 5 years, except 2009 due to the international financial crisis. In
2010, the growth rate reached 161.39 % and export amounted to NT$3.24 billion. In 2011, the growth rate reached 41.86 %
with exports amounting to NT$4.59 billion. In 2007 and 2008, Taiwan’s ball screw imports were around NT$ 4.3 billion. In
2009, import dropped to NT$ 0.19 billion, -56.17 % due to the international financial crisis. Then, imports reached NT$0.66
billion, +246.31 % in 2010 after the international financial crisis ended. In 2011, imports grew 16.62 %, amounting to NT$0.77
billion.
Table 13. Ball screw imports & exports
Unit: NT$ 1,000
Year Export Import Surplus (deficit)
Dollar amount Growth rate Dollar amount Growth rate Dollar amount
2007 2,134,872 --- 440,829 --- 1,694,043
2008 2,308,653 8.14% 434,595 -1.41% 1,874,058
2009 1,238,010 -46.38% 190,472 -56.17% 1,047,538
2010 3,236,047 161.39% 659,626 246.31% 2,576,421
2011 4,590,794 41.86% 769,241 16.62% 3,821,553 Source of data: ROC Customs import/export database: ITRI
MACHINERY INDUSTRY IN TAIWAN
39
9. Outlook of Machinery Industry
Taiwan major machinery industries’ outlooks are summarized as follows:
Overall machinery industries
Machine tools, industrial machinery, and hi-tech equipments are major export items. Taiwan’s machine tool exports to China
remain unchanged or decreases slightly in 2013, but products from Japan and Germany to China are expected to increase.
Since imports of high-scale machine tools to China are entitled to a tax exemption, Taiwan is not able to enjoy the benefit due
to its exports of medium-scale machine tools only. Now, local manufacturers are eager to push the government to consolidate
resources in cooperation with manufacturers in order to upgrade machine tool industry’s capacity and thereby upgrade the
industry’s competitive edge.
The country’s machine tools are mainly for the production of molds and electronic products. Because the output of electronic
industry fell dramatically in 2012, local machine tools industry was also suffered. However, machine tools in Japan and
Germany are mainly for the manufacture of aviation and automobile products so that both nations’ exports continue to grow.
To local companies, hi-tech has to be integrated into production processes and thereby upgrade the quality of machine tools. It
is important for domestic manufacturers to develop multiple purpose machine tools for different types of industries, such as
automobile industry; one must not rely on electronic industry forever.
Machine tool industry
Manufacturers are switching to flexible production, multiple axial, intelligence, and multiple applications. Machine tool
manufacturers are using more and more electronic production machines. For example, manufacturers produce 3C products
using drilling center, and produce touch-control panel using glass processing machines.
Hi-tech equipment industry
Presently, domestic manufacturers focus on non-critical process equipments. They are planning to manufacture the
components required by critical equipments and to improve system integration capabilities. Manufacturers in the downstream
segment are also required to upgrade their equipment-manufacturing capability, such as LED and solar energy and touch-
control equipments.
Industrial robots
Industrial robot technological capabilities tremendously fall behind Japan, the US, and Europe. The companies should switch
to single machine automation at this moment, and then expand to production units and production lines step by step. A
number of ICT corporations have established their markets for their industrial robots.
Critical components
A number of critical components are very competitive in the international market, such as ball screws and linear slides. In the
future, manufacturers should focus on new applications, such as MRT automatic door opening/closing transmission devices.
Ball screw manufacturers are developing products with emphasis on high bearing force, high efficiency, dustproof, compact
size, and silence.
Source of data: IEK, ITRI
MACHINERY INDUSTRY IN TAIWAN
40
10. Appendix
10.1. MACHINERY RELATED TRADE FAIRS
Taipei International Machine Tool Show, TIMTOS: www.timtos.com.tw
Taipei Manufacturing Technology Show, MTduo: www.mtduo.com.tw
Taiwan International Machine Tool Show, TMTS: www.tmts.tw
Taipei International Plastics & Rubber Industry Show, TAIPEI PLAS: www.taipeiplas.com.tw
Taipei International Packaging Industry Show, TAIPEI PACK: www.taipeipack.com.tw
Taipei International Mold & Die Industry Fair: www.odm-dmi.com
Taipei International Industrial Automation Exhibition: www.autotaiwan.com.tw
Taipei International Food Processing & Pharm. Machinery Show: www.foodtech.com.tw
Taiwan International Textile & Garment Machinery Exhibition:www.chanchao.com.tw
10.2. ASSOCIATIONS AND OTHER SOURCES
Industrial Associations
Taiwan Association of Machinery Industry: http://www.tami.org.tw
Taiwan Machine Tool Foundation: www.tmtf.org.tw
Taiwan Machine Tool & Accessory Builders’ Association: www.tmba.org.tw
Precision Machinery Development Association of ROC: www.cmd.org.tw
Taiwan Mold & Die Industry Association: www.tmdia.org.tw
Taiwan Fluid Power Association: www.tfpa.org.tw
Taiwan Semiconductor Industry Association: www.tsia.org.tw
Taiwan Electronic Equipment Industry Association: www.teeia.org.tw
Taiwan Electrical & Electronic Manufacturers’ Association: http://www.teema.org.tw
Photonics Industry & Technology Development Association: http://www.pida.org.tw
Taiwan Automation Intelligence and Robotics Association: www.tairoa.org.tw
Trade Organizations
Taiwan External Trade Development Council (TAITRA): http://www.taitra.org.tw
Importers & Exporters Association of Taipei: http://www.ieatpe.org.tw
Chinese International Economic Cooperation Association: http://www.cieca.org.tw
Chinese National Association of Industry and Commerce, Taiwan: http://www.cnaic.org
Taiwan Chamber of Commerce: http://www.tcoc.org.tw
Trade Office of Swiss Industries (TOSI): www.swiss.org.tw
R&D Centers
Precision Machinery Research Development Center: www.pmc.org.tw
Industrial Technology Research Institute: http://www.itri.org.tw/eng/
Industry & Technology Intelligence Services: http://www.itis.org.tw
Institute for Information Industry: http://www.iii.org.tw
Government Agencies for Machinery Industry
Ministry of Economic Affairs (MOEA): www.moea.gov.tw
Industrial Development Bureau, MOEA: www.moeaidb.gov.tw
Committee for Precision Machinery Industry Development, MOEA: www.moeamid.org.tw
Machinery Companies in Taiwan
For detailed information refer to: www.tami.org/product-new.php?on=1
MACHINERY INDUSTRY IN TAIWAN
41
10.3. CUSTOM TARIFFS
Table 14. Custom tariffs for selected machinery products for Swiss exports
In case of 4 digit HS code with many subcategories, the lowest and highest tariff rates are included.
HS code Description Custom tariff (%)
8402 Steam or other vapour generating boilers; super-heated water boilers 3 / 5
8403 Central heating boilers other than those of heading 84.02 3 / 4
8404 Auxiliary plant for use with boilers of heading 84.02 or 84.03;
condensers for steam orother vapour power units
3
8405 Producer gas or water gas generators, with or without theirpurifiers;
acetylene gas generators and similar waterprocess gas generators,
with or without their purifiers
3 / 4
8406 Steam turbines and other vapour turbines 3 / 5
8407 Spark-ignition reciprocating or rotary internal combustionpiston
engines
0 / 17.5
8408 Compression-ignition internal combustion piston engines (diesel or
semi-diesel engines)
2.5 / 12.5
8409 Parts suitable for use solely or principally with theengines of heading
84.07 or 84.08
0 / 15
8410 Hydraulic turbines, water wheels, and regulators therefor 3 / 6
8411 Turbo-jets, turbo-propellers and other gas turbines 0 / 6.8
8412 Other engines and motors 5 / 10
8413 Pumps for liquids, whether or not fitted with a measuringdevice; liquid
elevators
3 / 12.5
8414 Air or vacuum pumps, air or other gas compressors and
fans;ventilating or recycling hoods incorporating a fan,whetheror not
fitted with filter
2.5 / 5
8415 Air conditioning machines, comprising a motor-driven fan and
elements for changing the temperature and humidity
1.5 / 10
8416 Furnace burners for liquid fuel, for pulverised solid fuelor for gas;
mechanical stokers
3 / 4
8417 Industrial or laboratory furnaces and ovens, includingincinerators, non-
electric
3 / 4
8418 Refrigerators, freezers and other refrigerating or freezingequipment,
electric or other; heat pumps other than airconditioning machines of
heading 84.15
0 / 15
8419 Machinery, plant or laboratory equipment, whether or notelectrically
heated, for the treatment of materials by aprocess involving a change
of temperature
0 / 4
8420 Calendering or other rolling machines, other than for metals or glass,
and cylinders therefor
4
8421 Centrifuges, including centrifugal dryers; filtering orpurifying machinery
and apparatus, for liquids or gases
3 / 10
8422 Dish washing machines; machinery for cleaning or dryingbottles or
other containers; machinery for filling, closing, sealing or labelling
bottles, cans, boxes, bags orother containers
2.5 / 6.5
8423 Weighing machinery, including weight operated counting orchecking
machines; weighing machine weights of all kinds
3.4
8424 Mechanical appliances for projecting, dispersing or spraying liquids or
powders
2.5 / 5
8425 Pulley tackle and hoists other than skip hoists 0
MACHINERY INDUSTRY IN TAIWAN
42
8426 Ships' derricks; cranes, including cable cranes; mobilelifting frames,
straddle carriers and works trucks fittedwith a crane
0
8427 Fork-lift trucks; other works trucks fitted with lifting orhandling
equipment
5 / 10
8428 Other lifting, handling, loading or unloading machinery 0
8429 Self-propelled bulldozers, angledozers, graders, levellers,scrapers,
mechanical shovels, excavators, shovel loaders, tamping machines
and road rollers
0
8430 Other moving, grading, levelling, scraping, excavating,tamping,
compacting, extracting or boring machinery, forearth, minerals or ores;
pile-drivers and pile-extractors;snow-ploughs and show-blowers
0
8431 Parts suitable for use solely or principally with themachinery of
headings 84.25 to 84.30
0 / 3.5
8432 Agricultural, horticultural or forestry machinery for soilpreparation or
cultivation; lawn or sports-ground rollers
0
8433 Harvesting or threshing machinery, including straw or fodder balers;
grass or hay mowers; machines for cleaning,cleaning, sorting or
grading eggs, fruit or otheragricultural produce, other than machi
0
8434 Milking machines and dairy machinery 0
8435 Presses, crushers and similar machinery used in themanufacture of
wine, cider, fruit juices or similarbeverages
2.5 / 4
8436 Other agricultural, horticultural, forestry, poultry-keeping or bee-
keeping machinery, including germination plantfitted with mechanical
or thermal equipment; poultryincubators and brooders
2.5 / 4
8437 Machines for cleaning, sorting or grading seed, grain ordried
leguminous vegetables
2.5 / 4
8438 Machinery for the industrial preparation or manufacture food or drink 2.5 / 3
8439 Machinery for making pulp of fibrous cellulosic material orfor making
or finishing paper or paperboard
2.5 / 4
8440 Book-binding machinery, including book-sewing machines 2.5
8441 Other machinery for making up paper pulp, paper orpaperboard,
including cutting machines of all kinds
2.5 / 4
8442 Machinery, apparatus and equipment (other than themachine-tools of
headings 84.56 to 84.65) for preparing or making plates, cylinders or
other printing components; plates, cylinders and other printing
0 / 4
8443 Printing machinery used for printing by means of plates, cylinders and
other printing components of heading
0 / 4
8444 Machines for extruding, drawing, texturing or cuttingman-made textile
materials
3
8445 Machines for preparing textile fibres; spinning, doubling or twisting
machines and other machinery for producing textile yarns; textile
reeling or winding
2
8446 Weaving machines (looms) 2 / 3
8447 Knitting machines, stitch-bonding machines and machines formaking
gimped yarn, tulle, lace, embroidery, trimmings,braid or net and
machines for tufting
3
8448 Auxiliary machinery for use with machines 2.3 / 4
8449 Machinery for the manufacture or finishing of felt ornonwovens in the
piece or in shapes
3 / 5
8450 Household or laundry-type washing machines, including machines
which both wash and dry
3 / 10
8451 Machinery for washing, cleaning, wringing, drying, ironing, pressing, 2.5 / 10
MACHINERY INDUSTRY IN TAIWAN
43
bleaching, dyeing, dressing, finishing, coating or impregnating
8452 Sewing machines, furniture, bases and covers specially designed
forsewing machines; sewing machine needles
2 / 5
8453 Machinery for preparing, tanning or working hides, skins orleather or
for making or repairing footwear or other rticles of hides, skins or
leather, other than sewing machines
2.5 / 4
8454 Converters, ladles, ingot moulds and casting machines, of akind used
in metallurgy or in metal foundries
2.5 / 4
8455 Metal-rolling mills and rolls therefor 2.5 / 4
8456 Machine-tools for working any material by removal of material, by
laser or other light or photon beam,ultrasonic, electro-discharge,
electro-chemical, electronbeam, ionic-beam or plasma arc processes
4 / 6
8457 Machining centres, unit construction machines (singlestation) and
multi-station transfer machines, for workingmetal
4 / 6
8458 Lathes for removing metal 4 / 6
8459 Machine-tools (including way-type unit head machines) fordrilling,
boring, milling, threading or tapping by removingmetal, other than
lathes
4 / 6
8460 Machine-tools for deburring, sharpening, grinding, honing, lapping,
polishing or otherwise finishing metal, or cermetsby means of grinding
stones, abrasives or polishing products, other than gear cutti
4 / 6
8461 Machine-tools for planing, shaping, slotting, broaching, gear cutting,
gear grinding or gear finishing, sawing, cutting-off and other machine-
tools working by removingmetal, or cermets
3 / 4
8462 Machine-tools (including presses) for working metal byforging,
hammering or die-stamping; machine-tools (including presses) for
working metal by bending, folding, straightening, flattening, shearing,
3 / 5
8463 Other machine-tools for working metal, or cermets, without removing
material
3.5 / 4
8464 Machine-tools for working stone, ceramics, concrete, asbestos-cement
or like mineral materials or forcold-working glass
3 / 4
8465 Machine-tools (including machines for nailing, stapling, glueing or
otherwise assembling) for working wood, cork, bone, hard rubber,
hard plastics or similar hard materials
3 / 4
8466 Parts and accessories suitable for use solely, including work or tool
holders, self-opening dieheads, dividing headsand other special attach
2.5
8467 Tools for working in the hand, pneumatic hydraulic or withself-
contained electric or non-electric motor
2.5 / 5
8468 Machinery and apparatus for soldering, brazing or welding, whether or
not capable of cutting; gas-operated surface tempering machines
andappliances
2.5 / 5
8469 Typewriters; word-processing machines 0
8470 Calculating machines and pocket-size data recording, reproducing and
displaying machines with calculating functions accounting machines,
postage-franking machine sticket-issuing machines
0
8471 Automatic data processing machines and units thereof; magnetic or
optical readers, machines for transcribing data nto data media in
coded form and machines for processing such data
0
8472 Other office machines 0 / 3.5
8473 Parts and accessories suitable for use solely 0 / 2.5
8474 Machinery for sorting, screening, separating, washing, crushing,
grinding, mixing or kneading earth, stone, or other mineral substances,
0
MACHINERY INDUSTRY IN TAIWAN
44
in solid form
8475 Machines for assembling electric or electronic lamps, tubesor valves
or flash-bulbs, in glass envelopes; machines form anufacturing or got
working glass or glassware
3 / 4
8476 Automatic goods-vending machines, including money-changing
machines
0 / 10
8477 Machinery for working rubber or plastics or for the manufacture of
products from these materials
2.5 / 3
8478 Machinery for preparing or making up tobacco 4
8479 Machines and mechanical appliances having individual functions 0 / 4
8480 Moulding boxes for metal foundry; mould bases; moulding patterns;
moulds for metal, metal carbides, glass, mineral materials, rubber or
plastics
2.5 / 4
8481 Taps, cocks, valves and similar appliances for pipes, boiler shells,
tanks, vats or the like, including pressure-reducing valves and
thermostatically controlledvalves
0 / 5
8482 Ball or roller bearings 1 / 10
8483 Transmission shafts and cranks; bearing housings and plain shaft
bearings; gears and gearing; ball or roller screw; gear boxes and other
speed changers
2.5 / 15
8484 Gaskets and similar joints of metal sheeting combined with Gaskets
and similar joints of metal sheeting combined with other material or of
two or more layers of metal
4 / 5
8486 Machines and apparatus of a kind used solely or principally for the
manufacture of semiconductor boules or wafers, semiconductor
devices, electronic integrated circuits orflat panel displays
0
8487 Machinery parts, not containing electrical connectors, insulators, coils,
contacts or other electrical features
0 / 15
9024 Machines and appliances for testing the hardness, strength,
compressibility, elasticity or other mechanical properties
0
9025 Hydrometers and similar floating instruments 0
9026 Instruments and apparatus for measuring or checking the flow, level,
pressure, or other variables of liquids or gases
0
9027 Instruments and apparatus for physical or chemical analysis 0
9030 Oscilloscopes, spectrum analysers and other instruments for
measuring electrical quantities
0 / 3
9031 Measuring or checking instruments, appliances and machines, not
specified
0
9032 Automatic regulating or controlling instruments 0 / 10 Source of data: Customs Administration, Ministry of Finance
For additional customs tariff information please check at http://eweb.customs.gov.tw/RateWebEn/Search1.aspx
Switzerland Global Enterprise
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Switzerland Global Enterprise
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T +41 91 911 51 35
Switzerland Global Enterprise
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T +41 21 613 35 70
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