South Korean Machine Tool Export Revenue Reached NT$38.3 Billion

Compared with Taiwan’s relatively minor annual growth of 9.4% in machine tool exports in the first half, South Korean machine tool export revenue reached NT$38.3 billion (US$1.31 billion), soaring 30.4% year on year (YoY), primarily due to depreciating Korean won and South Korea’s free trade agreement (FTA) with the United States and the European Union (EU), according to the recent statistics compiled by Taiwan Association of Machinery Industry (TAMI). South Korean machine tool revenue growth generated by America-bound exports skyrocketed 90.7% YoY in the first half, with corresponding growths to China, India, Vietnam, and Brazil all rising 43.8%, 23.8%, 229.4%, and 44.1%, respectively. However, Taiwan’s machine tool export revenue growth to China in the first half declined 14.6% from a year earlier, with corresponding figures to India and Brazil also decreasing YoY 16.3% and 31%, respectively. Total export revenues of Taiwan’s machine tool sector reached US$2.09 billion in the first half, rising 9.4% YoY from last year’s US$1.91 billion, versus South Korea’s NT$38.3 billion (US$1.31 billion), soaring YoY 30.4% from US$1.005 billion last year. With the gaping performance between Taiwan and South Korea, Morris Chang, the founding Chairman of Taiwan Semiconductor Manufacturing Company Ltd. (TSMC), the world`s largest dedicated independent semiconductor foundry, suggested Taiwan’s central bank to depreciate the New Taiwan dollar so Taiwan, whose economy is export-driven, can handle fierce threat from South Korea. Source: CENS