High-end Machine Tool Makers Aim for 100% Mfg. in Taiwan

Taipei, Dec.31, 2011 (CENS)--The early-harvest list of the ECFA (economic cooperation framework agreement) will become effective on Jan. 1, 2011 but limits the manufacturing origin of machine tools, which forces Taiwan's manufacturers of high-end machine tools to try to fully fabricate such items on the island.

Taiwan's Ministry of Economic Affairs (MOEA) said it will do what it can to attract well-renowned firms from Japan and Germany to set up production in Taiwan to help domestic manufacturers upgrade manufacturing technologies. T.C. Tu, general director of the MOEA's Industrial Development Bureau, noted his ministry will assist domestic manufacturers to achieve 100% local manufacturing of high-end machine tools in five years.

Taiwan imports about 60% of high-end machine tools from Germany and Japan. Tu said the early-harvest list avails nine machine tool items to duty-free status, seven of which are high-tier computerized models. Of the seven items, sawing machine, pressing machines and grinding machines enjoy a three-year buffer, after which the duty-free status ends. Moreover, the CNC lathes enjoy a five-year grace period.

To help domestic manufacturers upgrade manufacturing technologies, the MOEA will form several R&D alliances with manufacturers to help them with in-house technologies over five years.