Overview
Taiwan has developed a complete machinery and machine tools ecosystem comprising close linkages between midstream and downstream segments and highly interdependent clusters. In 2022, Taiwan’s machinery and machine tools industry generated $48 billion in local production and accounted for $34 billion in total exports, demonstrating the industry’s export-oriented posture. The United States was the second-largest source of machinery and machine tools, preceded only by Japan. Imports from the United States totaled $12.3 billion, accounting for 20 percent of total machinery and machine tools imports.
The Taichung Metropolitan Area is the center of Taiwan’s advanced manufacturing industry. Taichung is home to the Smart Machinery Promotion Office, and the Taichung City Precision Machinery Innovation Technology Park has the highest concentration of machine tool manufacturing in the world.
In 2017, the Taiwan authorities enacted the “5+2 Industrial Development Initiatives,” which are industrial innovation programs that target smart machinery, “Asia-Silicon Valley” which relates to Internet of Things innovation, green energy technology, the biomedical industry, the defense industry, new agriculture, and the circular economy. Of these innovation initiatives, Smart Machinery is the fastest growing program with the most tangible results. It aims to enhance Taiwan’s international competitiveness in the smart machinery industry and establish Taiwan as a hub of smart machinery innovation in Asia.
Machine Tools Market Unit: USD thousands
| Year | 2020 | 2021 | 2022 | 2023 (Estimated) |
| Total Local Production | $36,900,000 | $43,434,680 | $48,690,000 | $38,000,000 |
| Total Exports | $26,008,000 | $33,138,000 | $34,813,000 | $28,000,000 |
| Total Imports | $42,841,000 | $56,361,000 | $61,287,000 | $56,000,000 |
| Imports from the U.S. | $8,588,000 | $10,857,000 | $12,396,000 | $11,000,000 |
| Total Market Size* | $53,733,000 | $66,657,680 | $75,164,000 | $66,000,000 |
| Exchange Rate: New Taiwan Dollars per U.S. Dollar | 30.28 | 29.93 | 29.78 | 30.55 |
*Market Size = (Total Local Production + Total Imports) – (Total Exports)
Sources: Taiwan Association of Machinery Industry (TAMI); Taiwan Ministry of Economic Affairs; Customs Administration
Leading Sub-Sectors
- Additive manufacturing equipment
- Machine tools and industrial robots
- CNC machines and material handling equipment
- Industrial automation systems
- Packaging machinery
- Woodworking and furniture production
- Labelling machines
- 3D printing technologies
- Smart software and production systems, CAD/CAM
Opportunities
Although the Taiwan market has historically relied heavily on Germany and Japan for conventional machinery and machine tools supply, Taiwan manufacturers consider U.S. producers to be highly competitive in the emerging fields of system integration solutions, automation solutions, integrated machine tools, industrial robots, and new manufacturing technologies.
Resources
Trade Shows
- SEMICON Taiwan, Taipei, September 6-8, 2023
- Taiwan International Machine Tool Show (TMTS), Taipei, March 27-31, 2024
- Kaohsiung Industrial Automation Exhibition, Kaohsiung, May 15-18, 2024
- Automation Taipei, Taipei, August 21-24, 2024
Relevant Authorities and Associations
- Industrial Development Bureau (IDB), Ministry of Economic Affairs (MOEA)
- Industrial Technology Research Institute (ITRI)
- Smart Machinery Promotion Office
- Taiwan Automation Intelligence and Robotics Association (TAIROA)
- Taiwan Association of Machinery Industry (TAMI)
- Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA)
- Taiwan Machine Tool and Accessory Builders’ Association (TMBA)