TAIPEI (TVBS News) — The Taiwan Association of Machinery Industry (TAMI, 台灣機械工業同業公會), a key trade group representing Taiwan's machinery manufacturers, on Tuesday (May 13) called for political parties to engage in measured debate over a proposed NT$100 billion (US$3.3 billion) subsidy for Taiwan Power Company (Taipower, 台電), the island's state-owned electricity provider. The appeal comes as manufacturers grapple with mounting uncertainty over American tariff policies and lingering questions about the subsidy initiative.
The Executive Yuan (行政院), Taiwan's cabinet, has proposed a special legislative package to respond to global economic pressures, allocating NT$410 billion (US$13.5 billion) with NT$100 billion designated specifically for Taipower. The Chinese National Federation of Industries (全國工業總會), Taiwan's largest industrial association, voiced support earlier this month for the power company subsidy as a mechanism to prevent electricity price increases amid rising costs. The federation has urged legislators across party lines to collaborate on measures that would shield Taiwan's export-driven economy from mounting international challenges.
TAMI officials emphasized that retaliatory American tariffs have already forced machinery manufacturers to suspend production schedules, delay shipments, and revise commercial agreements with international buyers. The situation has particularly strained Taiwan's machinery sector, which relies heavily on exports for survival. Industry representatives pointed to a perfect storm of global disruptions — the lingering effects of the COVID-19 pandemic, escalating U.S.-China trade tensions, and ongoing conflict between Russia and Ukraine — that have created unprecedented volatility in supply networks and customer markets worldwide.
Beyond tariff concerns, machinery manufacturers are battling currency headwinds as the New Taiwan dollar strengthens considerably against its American counterpart, squeezing profit margins and diminishing companies' financial flexibility. TAMI representatives stressed that maintaining predictable electricity costs through the proposed subsidy would offer crucial breathing room for an industry fighting on multiple fronts. Such price stability, they argued, would help manufacturers weather the tariff storm while positioning Taiwan's machinery sector to navigate an increasingly complex global business environment. ★