Taiwan - Country Commercial Guide
Machinery and Machine Tools

This is a best prospect industry sector for this country.  Includes a market overview and trade data.

Last published date: 2021-09-13

Overview

Taiwan has developed a complete machinery and machine tools ecosystem characterized by close linkages between midstream and downstream segments and highly interdependent clusters.  In 2020, Taiwan’s machinery and machine tools industry generated US$39 billion in local production, which included US$26 billion in total exports.  Imports from the United States totaled US$8.6 billion accounting for 20% of the total imports.  The United States was the second largest source of machinery and machine tools only behind Japan.  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 Plan,” which included a US$117 million Smart Machinery Initiative (SMI) that prioritized key innovative industries.  Based on Germany’s Industry 4.0, the purpose of the SMI is to transform the traditional machinery industry into an advanced machinery industry, by helping 50,000 local manufacturers upgrade their production methods, boosting total industrial revenue, and reducing Taiwan’s economic reliance on the semiconductor industry, which is by far Taiwan’s largest industry.

Machine Tools Market                                                                                                                     Unit: USD thousands

 

2018

2019

2020

2021 (Estimated)

Total Local Production

$40,536,013

$36,900,000

$33,200,000

$43,000,000

Total Exports

$27,950,209

$27,665,011

$24,900,000

$28,000,000

Total Imports

$30,402,010

$34,716,964

$31,200,000

$47,000,000

Imports from the U.S.

$8,007,761

$6,826,121

$6,140,000

$9,400,000

Total Market Size

$42,987,814

$43,951,953

$39,500,000

$62,000,000

Exchange Rate:  USD1

30.59

30.11

30.28

27.89

Total Market Size = (Total Local Production + Total Imports) – (Total Exports)

Data Sources:  Taiwan Association of Machinery Industry (TAMI) published statistics

Leading Sub-Sectors

  • Additive manufacturing equipment
  • Machine tools and industrial robots
  • 6-axis industrial robots
  • Automation technology for CNC manufacturing
  • Machine tools and peripheral systems
  • Flexible manufacturing systems (FMS)
  • Work-holding equipment
  • Zero-point clamping systems
  • New manufacturing technologies
  • 3D printing technologies for metalworking industry
  • Specialized smart production facilities
  • Smart machine tools, modules, and components
  • Smart software and production systems
  • CAD/CAM for metalworking

Opportunities

Although the Taiwan market has historically depended 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

  • E-Mobility Taiwan, Taipe
  • Taiwan International Plastics, Rubber and Composites Show, Online
  • Energy Taiwan, Taipei
  • SEMICON Taiwan, Taipei
  • Intelligent Asia
  • Kaohsiung Industrial Automation Exhibition, Kaohsiung
  • Taiwan International Machine Tool Show, Virtua
  • Taipei International Machine Tool Show

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)

U.S. firms interested in learning more about the Machinery and Tools market and seeking to expand their export opportunities to Taiwan are encouraged to contact CS Taiwan Commercial Specialist Jason Chang at Jason.Chang@trade.gov.