TAIPEI (Taiwan News) — The Industrial Technology Research Institute (ITRI) said Monday (Oct. 26) that Taiwan's machinery industry could bounce back in 2021 with an estimated 8 percent increase in production.

During a seminar focusing on the future development trends of Taiwan's machinery industry, ITRI researcher Harrison Hsiung (熊治民) pointed out that global machine tool production has dropped 17.1 percent since last year due to the coronavirus pandemic. He said the decrease in global demand has lowered Taiwan's machine tool production by 31.2 percent.

Despite the industry's less-than-ideal performance this year, Hsiung believes Taiwan's machinery producers will see an 8 percent rebound in 2021 as economies slowly improve. He estimated that the country's machine tool production value will reach NT$109.7 billion (US$3.8 billion) by the end of next year.

Hsiung explained that his projections are attainable thanks to the growing global demand for automobiles, electronics, semiconductors, and 5G devices. He added that the return of overseas Taiwanese companies will also provide a necessary boost to local machine tool manufacturers.

However, Hsiung expressed concern over the impact electric vehicles will have on the machinery industry. He expected the change in the automobile landscape to have the largest influence on machine tool demand worldwide by around 2025, reported CNA.