News

Although overall domestic production of conventional electric-discharge machines (EDMs) has been slipping in recent years as manufacturers rush to relocate facilities in mainland China, some of Taiwan's EDM makers have managed to stay at home and even continue making good profits by developing advanced computerized numerically controlled (CNC) wire-cut machines (specialized EDMs) and marketing them in the industrially advanced countries.

Some producers believe this is a niche that will enable them to regain momentum in the international market. One industry observer even predicts that Taiwan will grow into the world's largest producer of CNC wire-cut machines within five years.

Among the top companies in the process of making this change are Ching Hung Machinery & Electric Co., Max See Industry Co., and ARD Precision Machinery Co. These firms have the capability of developing advanced wire-cut machines on their own by employing locally made CNC devices.

More than 10 smaller companies are also following in the footsteps of their bigger brothers; in this effort, they believe that they can count on help from the island's many well- established electronic-component firms.

CNC wire-cut machines are generally used in the production of sophisticated molds and dies. Japan is currently No. 1 in the production of these machines, followed by Switzerland; these two countries are capable of rolling out 1,500 and 1,000 units of the machines, respectively, per year. In terms of R&D and mass-production capability, Taiwan has been catching up quickly over the past two years.

The island's capability for turning out CNC wire-cut machines was seen at the biennial Taipei International Machine Tools Show in March 2001, at which 15 domestic EDM makers showcased CNC wire-cut models-- more than the numbers from Japan and Switzerland.

Price Advantage

One local manufacturer which has marketed its CNC wire-cut machines internationally says that local producers have an advantage over their overseas rivals because the prices of Taiwan-made models are generally 30% lower than similar products made in Japan and Switzerland. This should help the island's suppliers to gain the upper hand in the international competition.

"Thanks to the successful development of locally made CNC control devices, the most critical components in CNC wire-cut machines," comments Wang Wuu-shyong, president of Ching Hung, Taiwan's largest producer of EDMs, "sales for Taiwan-made CNC wire-cut machines have been substantial in the international market, steadily increasing over the past few years."

Wang reports that Taiwan sold 400 CNC wire- cut machines worth a total of NT$600 million (US$17.09 million at NT$35.1:US$1) in 2001, double the tally for the previous year. He believes that sales till continue growing at a rapid rate despite the downturn in the global economy.

Ching Hung sold 250 conventional EDMs in the first half of last year, down 80 units from the same period of 2001 because of the sagging economy. Sales of CNC wire-cut machines in the first half of last year, by contrast, reached 150 units, up 30 units from the first half of 2001.

Max See president Liao Ping-yi reports that his company has also experienced steady growth in sales of CNC wire-cut machines since the start of last year, despite increased competition in the international market from newcomers based both in Taiwan and South Korea.

"Our sales of CNC wire-cut machines have remained steady at between six and eight units a month during the first nine months of last year," Liao notes. "This was up 20% from the corresponding period of 2001."

Liao attributes his success to high product quality and a high level of product-assembly capability. "Thanks to our efforts in the development of sophisticated products over the past few years," he comments, "our products are popular in the international market for CNC wire-cut machines. In recent years, we've exported these products to such industrially advanced countries as Germany and Italy. (BS)