The shock announcement twitted just lately by US president Donald Trump to boost tariffs on US$200 billion price of Chinese imports from the prevailing 10% to 25% beginning May 10 will impose solely short-term impacts on Taiwan machine instrument makers and will translate right into a long-term boon for them.
Alex Ko, chairman of Taiwan Association of Machinery Industry, stated the lingering US-China commerce rows have precipitated equipment makers to decelerate their investments within the quick time period, however will profit them probably the most in the long term. This is as a result of China will now not be the world’s manufacturing unit, as producers will transfer to ascertain their second manufacturing bases exterior China to diversify dangers.
Samuel Shieh, vice chairman of Taiwan Machine Tool & Accessory Builders’ Association, stated as soon as the uncertainties from the US-China commerce tensions are gone following the tariff hike, Taiwan machine instrument makers will speed up relocation of their manufacturing strains from China, retaining solely a part of capacities to serve the home market there. He harassed that for Taiwan machine instrument makers, shifting manufacturing strains to areas apart from China will deliver them extra enterprise alternatives
In establishing new manufacturing bases elsewhere, trade sources stated, makers are anticipated to include automated and good manufacturing methods to counter problems with labor shortages and labor price will increase which will come up in different areas later. In this regard, Taiwan makers can higher leverage their machine instrument and ICT benefits to roll out good machines or design good manufacturing architectures for purchasers.
