Bbk machinery industry taiwan june 2013

OFFICIAL PROGRAM

June 2013

MACHINERY INDUSTRY IN TAIWAN


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Language: English

Number of pages: 45

Author: Trade Office of Swiss Industries (TOSI), Taiwan

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Contents


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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


7.2. Industrial development and trend _____________ 35

8. MECHANICAL CRITICAL COMPONENTS ________ 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


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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


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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


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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.


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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)


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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.


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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.


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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.


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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


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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)


Graphic 3. Trend of hi-tech equipment industry

(NT$ million)


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


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Graphic 4. Trend of robot industry

(NT$ million)


Graphic 5. Trend of key component industry

(NT$ million)


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


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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)


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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


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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


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



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


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.


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)


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)


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


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)


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


21

4.3. PANEL DISPLAY INDUSTRY

Graphic 10. Large TFT LCD market size and trend

(US$ million)


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)


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


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


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)


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)


23

Graphic 13. LED component industry’s development and market trend

(NT$ million)


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)


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)


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)


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


25

Graphic 16. MB shipment and growth

(million units)


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)


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


26

Graphic 18. Digital camera shipment and growth

(million units)


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)


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


27

Graphic 20. LCD TV shipment and growth

(million units)


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


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


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)


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%

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70%

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90%

0

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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.


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 %.


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)


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%

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2010 2011 2012(e) 2013(f) 2014(f)Market valueGrowth rate


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.


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 %).


34

Graphic 24. Panel display production-equipment market trend

(NT$ million)


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%

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2010 2011 2012(e) 2013(f) 2014(f)

Market value Growth rate


35

7. Robot industry


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.


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.


36

Graphic 25. Industrial robot market demand


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)


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

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2'000

3'000

4'000

5'000

6'000

2010 2011 2012(f) 2013(f) 2014(f)

Units

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2'308'059 2'446'543

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37

Graphic 27. Industrial robot’s annual import (value & quantity)

(NT$ 1,000)


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

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2'500

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2010 2011 2012(f) 2013(f) 2014(f)

Import value


38

8. Mechanical critical components


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


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.



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

http://www.timtos.com.tw/

http://www.mtduo.com.tw/

http://www.tmts.tw/

http://www.taipeiplas.com.tw/

http://www.taipeipack.com.tw/

http://www.odm-dmi.com/

http://www.autotaiwan.com.tw/

http://www.foodtech.com.tw/

http://www.chanchao.com.tw/

http://www.tami.org.tw/

http://www.tmtf.org.tw/

http://www.tmba.org.tw/

http://www.cmd.org.tw/

http://www.tmdia.org.tw/

http://www.tfpa.org.tw/

http://www.tsia.org.tw/

http://www.teeia.org.tw/

http://www.teema.org.tw/

http://www.pida.org.tw/

http://www.tairoa.org.tw/

http://www.taitra.org.tw/

http://www.ieatpe.org.tw/

http://www.cieca.org.tw/

http://www.cnaic.org/

http://www.tcoc.org.tw/

http://www.swiss.org.tw/

http://www.pmc.org.tw/

http://www.itri.org.tw/eng/

http://www.itis.org.tw/

http://www.iii.org.tw/

http://www.moea.gov.tw/

http://www.moeaidb.gov.tw/

http://www.moeamid.org.tw/

http://www.tami.org/product-new.php?on=1


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


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


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


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

http://eweb.customs.gov.tw/RateWebEn/Search1.aspx

Switzerland Global Enterprise

Stampfenbachstrasse 85

CH-8006 Zürich

T +41 44 365 51 51


Corso Elvezia 16 – CP 5399

CH-6901 Lugano

T +41 91 911 51 35


Avenue d’Ouchy 47 – CP 315

CH-1001 Lausanne

T +41 21 613 35 70

www.switzerland-ge.com

ExportHelp www.switzerland-ge.com/exporthelp

[email protected]

T 0844 811 812

Documents

Bbk machinery industry taiwan june 2013