Page 26 - Taiwan Machinery 2023-08 Edition
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INDUSTRY NEWS
Taiwan’s Machinery Industry:
Taiwan’s Machinery Industry:
From Challenges to Opportunities in
From Challenges to Opportunities in
Industrial Paradigm Shift
Industrial Paradigm Shift
By Andrew Hsu
he year 2022 was marked by a series of significant however, the looming stalemate in the war between Russia
Tglobal challenges, including the China-US trade and Ukraine has impacted the global market, as Taiwan’s
dispute, the COVID-19 pandemic, escalating ocean freight machinery industry witnessed its eighteen-month export
expenses, disruptions in the global supply chain, and the growth streak ended suddenly during the second half.
prolonged Russia-Ukraine war. Consequently, price hikes For the whole year, fortunately, Taiwanese suppliers still
of natural gas, petroleum, and food lead to soaring infl ation. together achieved an impressive export value of US$34,813
To address these economic hardships, major economies million, representing a 5.1% year-on-year growth at an all-
time high, with production value hitting an unprecedented
like the EU and the US implemented contractionary mark of NT$1.45 trillion.
monetary policies, which, in turn, result in economic
stagnation and a noticeable decline in demand. The outlook for 2023 seems gloomy to Taiwan’s
machinery industry, as the persistent challenging
In the abovementioned scenario though, Taiwan’s circumstances continue to weaken the global economic
machinery industry has managed to maintain its momentum. To insiders, adding salt to their injury is the
competitiveness in the global market. According to the depreciating Japanese yen (JPY), which has spiraled
statistics compiled by the Taiwan Association of Machinery downward by more than 30% against the greenback
Industry (TAMI), the industry witnessed consistent growth since August 2019, and as a result further neutralized
in export value throughout the fi rst half of 2022. Later then, Taiwanese suppliers’ price advantages in the global
Taiwan Machinery (September 2023)
