Machinery maker Hiwin Technologies Co (上銀科技) expects its business to resume growth from next quarter after hitting a trough this quarter, with revenue expected to grow by a double-digit percentage this year, as demand has shown signs of recovery, company chairman Chuo Wen-heng (卓文恒) said yesterday.
The company witnessed a marked improvement in orders this year and the order visibility for some of its products — such as linear guideways and ball screws — has been extended to up to three-and-a-half months, Chuo said on the first day of the Taiwan International Machine Tool Show.
Chuo said he had observed relatively optimistic sentiment for the machine tool industry this year based on feedback from some buyers and exhibitors attending this year’s show.
Photo: Ritchie B. Tongo, EPA/EFE
Themed “Digital Transformation and Green Transformation for a Sustainable Future,” the show opened yesterday and runs until Sunday at the Taipei Nangang Exhibition Center.
The event features 631 exhibitors and 3,350 booths. More than 4,000 foreign buyers from 47 nation had preregistered to attend the exhibition, which is expected to attract more than 55,000 people, event organizer the Taiwan Machine Tool and Accessory Builders’ Association said.
The nation’s machine tool exports last year fell 14 percent year-on-year to US$2.6 billion due to a slowing global economy and geopolitical tensions. Outbound shipments this year are expected to grow slightly as headwinds remain, the association said.
Photo: Ritchie B. Tongo, EPA/EFE
Chuo said the industry has seen a mild increase in orders for machine tool-related linear-motion components since November last year, but they have not yet returned to the level seen in 2021 and 2022.
Currently, orders for large machine tools — such as those for the aerospace industry, wind turbines, infrastructure projects, semiconductors and automation applications — appear relatively stable, while orders for small and medium-sized machine tools are much weaker, Chuo said.
It might take a few months for the industry to see a more lasting recovery, he said.
Hiwin's consolidated revenue last year fell 15.97 percent year-on-year to NT$24.63 billion, the lowest in three years. From January to last month, the company's cumulative revenue increased 1.5 percent annually to NT$3.51 billion, company data showed.
Tongtai Machine and Tool Co (東台精機) expects a recovery in the machine tool industry in the second half of the year, as firms still face challenges in the first half, such as a ban on exports to Russia and stricter reviews for shipments to Turkey, chairman Yen Jui-hsiung (嚴瑞雄) told the Central News Agency yesterday.
The industry’s overall production value is expected to increase by a single-digit percentage this year from US$3.31 billion last year, Yen said.
Tongtai is focusing on semiconductors, the aerospace industry and electric vehicles this year, and expects orders to sequentially improve from next quarter, especially those from Thailand and Vietnam, he said.
Tongtai, which mainly makes machining centers and lathes, reported cumulative revenue in the first two months of the year rose 11.46 percent from a year earlier to NT$1.12 billion.
The company's consolidated revenue last year fell 7.84 percent year-on-year to NT$7.62 billion, company data showed.
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