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: 2020-09-25

Overview

Taiwan has developed a complete machinery and machine tools ecosystem characterized by close linkages between mid- and downstream segments and highly interdependent clusters.  In 2019, Taiwan’s machinery and machine tools industry generated $37 billion in local production and $27 billion in total exports.  Imports from the United States totaled US$6.8 billion accounting for 20% of total imports.  The United States was the second biggest source of machinery and machine tools behind only 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 $117 million Smart Machinery Initiative (SMI), and which 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

 

2017

2018

2019

2020 (Estimated)

Total Local Production

$36,950,921

$40,536,013

$36,900,000

$33,200,000

Total Exports

$26,103,852

$27,950,209

$27,665,011

$24,900,000

Total Imports

$28,562,814

$30,402,010

$34,716,964

$31,200,000

Imports from the U.S.

$7,554,492

$8,007,761

$6,826,121

$6,140,000

Total Market Size

$39,409,833

$42,987,814

$43,951,953

$39,500,000

Exchange Rate:  USD1

29.65

30.59

30.11

30.28

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

Data Sources: Total Local Production: Taiwan Association of Machinery Industry (TAMI); Total Exports: Taiwan Association of Machinery Industry (TAMI); Total Imports: Taiwan Association of Machinery Industry (TAMI); Imports from U.S.: Taiwan Association of Machinery Industry (TAMI)

(source: TAMI publicized 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 systems integration, software, integrated machine tools, industrial robots, and new manufacturing technologies.

Web Resources

Trade Shows

Relevant Authorities and Associations

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 or visit our website.