Taiwan Machinery Exports Surge in 2000; GlobalSemiconductor, IT Markets Fuel Red-Hot Growth.

Business Editors & Computer Technology Writers

CHICAGO--(BUSINESS WIRE)--Sept. 5, 2000

At this year's International Manufacturing Technology Show (IMTS), which starts tomorrow at Chicago's McCormick Place Lakeside Center, some 50 Taiwan machinery firms will demonstrate their

"Taiwan manufacturers have moved into more advanced machinery during the past few years in order to meet the booming global demand for IT-related products," said Ricky Kao, president and CEO of the China External Trade Development Council (CETRA), Taiwan's largest non-profit trade promotion organization. "As the third largest producer of IT products in the world, the evolution of the machinery industry is synergistic with our industrial capabilities."

This marriage of leading-edge technologies with more traditional industries is moving Taiwan into a new era of growth that will see Taiwan's machinery exports expand by an expected 12 percent to reach US$9.67 billion in 2000, according to P.T. Chen, chairman of the Taiwan Association of Machinery Industry (TAMI).

As of May 2000, Taiwan's machinery exports were valued at more than US$4 billion, reflecting a 22-percent jump from the same period a year ago.

Leading the way are exports of machine tools which grew 28 percent in the first five months of this year to top US$576 million, based on figures from the non-profit Machine Tool Development Fund (MTDF).

Premier Taiwan machine tool makers at IMTS include Kent Industrial Co. (IMTS B-6778), Tong Tai Machine & Tool Co. (IMTS A-8294), Goodway Machine Corp. (IMTS B-6778), Matech Industrial Co. (IMTS C-5705) and Ard Precision Machinery Co. (IMTS D-4138). They and other Taiwan companies will present their latest designs in precision tools, such as computer numerically controlled (CNC) machining centers, lathes, surface grinders and wire cutters.

As a whole, Taiwan's machinery industry is also adding high-technology manufacturing to its pallet of expertise.

These areas include CNC controllers used in IT and automotive manufacturing, ball grid array (BGA) placement machines used to attach computer chips to printed circuit boards (PCBs), mold and die machinery for making desktop, laptop and hand-held computers and light machining centers for metals such as magnesium alloys.

In addition, a few Taiwan firms have taken initial steps into the highly selective arena of aircraft and aerospace components.

Hiwin Technologies Corp. (IMTS D-4460) is the world's first manufacturer of linear motion and motion control products to hold ISO-9001 as well as ISO-14001 certifications. The company is a global leader as a supplier of critical components for machine tools, aircraft and aerospace technologies, medical equipment, vending machinery, materials handling and the automotive industry.

"Global demand has really recovered this year and I expect Taiwan's exports to remain strong for the rest of the year," said C.C. Wang, vice president of TAMI. "Other reasons for the strong growth are Taiwan's ability to develop long-term relationships with companies in the EU, US and Japan, while simultaneously nurturing markets in Latin America and the Middle East."

Highlighting Taiwan's high-tech focus, exports of electronics, IT hardware, precision machinery, steel and optical instruments grew by almost 33 percent in the first seven months of 2000, representing more than 70 percent of the island's total exports.

From January 2000 to July 2000, the island's total exports passed the US$84 billion mark, up more than 25 percent from the same period in 1999.

Taiwan Machinery

In 1999, Taiwan exported US$8.26 billion worth of machinery products. These exports were focused on Taiwan's largest markets in China -- via Hong Kong -- (29.6 percent), the United States (22.4 percent), the European Union (7 percent) and Japan (6.6 percent).

Growth in 2000 has soared as Asian economies continue to rebound from the 1997-1998 financial crisis, and demand increases for capital equipment. Other factors fostering growth include the expansion of the global IT and semiconductor industries, positive global growth forecasts and a move by Taiwan firms to include more sophisticated technologies.

For more information about Taiwan's machinery industry, please visit the Taiwan Association of Machinery Industry (TAMI) booth at the IMTS international pavilion or TAMI's Web site at www.tami.org.tw.