Taiwan's Machinery Sector Finds Future in New Technologies

Advancing to become the world's fifth largest, Taiwan's machine-building industry is resorting to developing new technologies in an effort to assert itself in the global markets with competitive products. For instance, Taiwanese machine-building companies have developed sophisticated technology for production of linear machine tools. According to Yen Jui-hsiung, a Taiwanese machine-building expert, linear machine tools can operate twice or thrice as efficient as conventional models. In addition, through intensive research and development, Taiwan's corporations have achieved success in precision machine centers, milling centers, CNC machine tools, casting machine tools, and so on. Nanotechnology a focus Nanotechnology will continue to be a focus. In fact, Debbie Liu of Song Mark Co Ltd, a medium-sized company based in Taoyuan, which produces casting, dies, metal parts, and so on, according to specific needs of their customers, stresses Taiwan's achievements in nanotechnology were finding universal acceptance and recognition worldwide. "Taiwan's government attached highest importance to the further development of the technology and will promote it further," says a representative of the Taiwan Association of Machinery Association (TAMI). "Nanotechnology will now be taken to the next stage of development," he adds. According to TAMI, the investment volume in the nano and biotech machinery segment will reach the value of US$325 million in 2007. Konrad Chen, the executive director of the Dusseldorf office of the Taiwan External Trade Development Council (TAITRA), stated in an interview that there is a "bright future" for nanotechnology. "Taiwan's strength lies in this segment. Our government has already invested a great deal in nanotechnology. According to our six-year plan, which began in 2003, the government plans to make a total investment of NT$21 billion (US$1 = ca. NT$30) for development of new technologies, training of workers, and so on. The Taiwanese machinery association TAMI is working closely with its German counterpart VDMA in Frankfurt," Mr Chen added. The government hopes the initiative will encourage the private sector to inject an additional funding of US$4.1 billion into this potential cash-cow by 2008. The projected production value of Taiwan's nanotech sector will be US$30 billion by 2008. Export grows while import falls Last year, Taiwan's machinery exports touched a value of almost US$1.5 billion compared to US$1.38 billion in 2004. A survey conducted by Taiwan foreign trade promotion agency, the Taiwan External Trade Development Council (TAITRA), which suggests that many buyers were "highly satisfied" with the "constantly improved" quality of Taiwan-made machine tools and accessories, including lathe machines, high precision casting machines, and linear motor machining centers. Taiwan's imports of machinery valued at US$1.90 billion compared with an import value of US$2.03 billion in 2004. The biggest suppliers of machinery to Taiwan were Japan, USA, Germany, China and Korea.