TAIPEI (Taiwan News) — The total production value of Taiwan’s machinery sector is likely to increase by 15% to reach NT$1.5 trillion (US$53.82 billion) this year, reports said Tuesday (Feb. 22).

The NT$200 billion increase is an estimate by the Taiwan Association of Machinery Industry (TAMI), CNA reported. The need for companies to replace their existing equipment with high-precision and smart machinery is the driving force behind the surge, according to TAMI Chairman Larry Wei (魏燦文).

He added that the changes in international supply chains brought about by the COVID-19 pandemic and U.S. sanctions against China have also fueled improved the performance of Taiwan’s machinery sector. Wei also identified Turkey as an interesting potential market and a springboard to the Middle East and Africa.

Based on the NT$1.5 trillion forecast for this year, executives from Taiwan’s machinery sector estimate NT$2 trillion could be possible in 2025, CNA reported.