Market Overview

Taiwan's Machine Tool Industry on the Way towards the Smartification

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Due to the unstoppable trend of Global Industry
4.0
, most leading Taiwan machine tool builders have stepped into the
field of smart machinery, making single machines intellectualized and
multi-tasked, as well as assembly lines going smart. They have also
achieved differentiation by using customized software or human-machine
interfaces so as to increase the added value of the machine tool
industry.

90% of Taiwan's machine tool industry is small and medium-sized
enterprises, which are capable of flexible production and quick
delivery. Under the specialized network among machine, module and
accessory, a flexible and rapid supply chain is established to create
industrial characteristics of low transaction cost and short delivery
time. There are 1,801 machine tool and accessory builders in Taiwan with
40,405 employees, investing USD 85 million in R&D and USD 3 million on
technology purchase.

Up to 90% of Taiwan machine tool and accessory industry is located in
the central Taiwan, especially in Taichung. The tight connection from
accessory production to machine tool assembly offers the best solution
for global equipment end-users, allowing central Taiwan to become a
unique cluster of machine tool industry in the world. Meanwhile, central
Taiwan is also the largest community of automation and machinery users
in the manufacturing sector. A complete machine tool and accessory
community and a rich experience in metal processing and manufacturing
provide the competitive edge for Taiwan machine tool industry to fulfill
global demands.

Taiwan's machine tool industry has been developing for over 60 years. It
began by accumulating technical knowledge from advanced foreign
equipment. Then, as manufacturers develop, design, and improve products
on their own, they are able to dominate the market in developing
countries such as those in South East Asia. After the 1980s, under the
support of research institutions, the domestic machine tool industry
gradually moved toward numerical control and made a significant increase
in production. Nowadays, Taiwan owns excellent competitiveness on
quality and price.

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