TAIPEI (TVBS News) — Taiwan's industrial machinery sector demonstrated resilience last month as exports climbed to US$2.422 billion (approximately NT$72.86 billion), reflecting a 7.7% increase compared to the same period last year, according to data released Friday (May 9) by the Taiwan Association of Machinery Industry (TAMI, 台灣機械工業同業公會), the island's leading trade organization for equipment manufacturers. The April figures mark the third consecutive month of growth despite mounting pressure from currency fluctuations.
Industry officials highlighted a concerning trend for manufacturers as the New Taiwan dollar strengthened by 8.7% against the U.S. dollar over a five-week period from April 1 to May 8, squeezing profit margins across the sector. When measured in local currency, April's exports totaled NT$79.67 billion (US$2.65 billion), representing a more substantial year-on-year growth of 10.4%. The year-to-date performance shows machinery exports reaching US$9.41 billion (NT$283.05 billion) through April, a 4.7% increase, while the NT$-denominated figure of NT$309.18 billion reflects a 9.1% rise.
The broader export gains mask significant weakness in the specialized machine tools segment, which saw shipments fall by 10.7% during the January-April period to US$627 million (NT$18.86 billion). Market distribution analysis reveals the United States as Taiwan's primary export destination, accounting for 26.3% of machinery shipments, followed by China at 22.7% and Japan at 8.2%. Manufacturers face additional headwinds after the U.S., Taiwan's largest customer, implemented a new reciprocal tariff mechanism in early April that threatens global trade patterns despite a three-month grace period before full enforcement.
Industry representatives have called on Taiwan's financial authorities to intervene in currency markets, requesting measures to stabilize the New Taiwan dollar's appreciation trajectory. The machinery association emphasized that exchange rate volatility poses a significant threat to export competitiveness, particularly as manufacturers already navigate challenging global economic conditions and increasing trade barriers in key markets. ★
