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Taiwan builds global machine tool and parts supply marketing center
The CNC machine tool functional components industry in Taiwan has a long history and has developed into a well-established industrial production system. With the global automotive and aerospace sectors experiencing growth, Taiwanese machine tool manufacturers are preparing for an economic recovery. In 2014, they announced plans to expand their facilities. Additionally, the Taiwanese economic sector committed to allocating 100 million yuan annually for four years, starting from 2014, to support the "Machine Tool and Component Integration Marketing Plan." This initiative aims to position Taiwan as a global hub for the supply and marketing of machine tools and related components.
Since the 1960s, Taiwan has focused on industrial development, building an economy centered around processing and export-oriented industries. The CNC machine tool functional components sector in Taiwan was among the first to develop, achieving a mature production scale with relatively low manufacturing costs. While its technology is slightly behind that of advanced industrial nations like Germany, Japan, and Italy, it still surpasses the level of mainland Chinese enterprises. In contrast, China's CNC machine tool component industry started later and has long been a bottleneck in the development of CNC systems. Although China has achieved some scale in rolling components, its competitiveness remains lower than that of Taiwanese products.
According to statistics from the Taiwan Machinery Association (TAMI), the value of mechanical equipment exports in January 2014 reached $1.529 billion, representing a 4.4% annual decline. In February, exports rose to $1.35 billion, marking a 24.7% increase. The cumulative value for January and February was $2.654 billion, up by 7.7%. Xu Xiuzhen, chairman of TAMI, noted that orders in February and March had increased significantly, and export values were expected to grow further in the second quarter. It was projected that both the output value of the machinery industry and machine tool exports would rise by at least 10% compared to the previous year, signaling a shift toward a more robust and competitive industry.
To support this growth, the economic department planned to allocate 100 million yuan yearly for four years, starting in 2014, to promote the "Machine Tool and Component Integration Marketing Plan" and establish Taiwan as a global center for machine tool and component supply and distribution.
In an effort to find sustainable solutions for the local machinery industry, TAMI has consistently engaged with the economic authorities. They emphasized that the Taiwanese machine tool industry lacks a strong domestic market and specific industry support compared to other countries. Therefore, the industry must enhance integration and focus on marketing strategies. By offering comprehensive customized services—such as Design-to-Order Solutions—Taiwan can build unique competitiveness. The International Trade Bureau was also encouraged to develop the "Machine Tool and Component Integration Marketing Plan."
The development of Taiwan’s machine tool industry relies heavily on external collaboration. On April 2, 2014, Chen Deming, a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference and president of the Association for Relations Across the Taiwan Straits (ARATS), visited the Beijing Machine Tool Research Institute, a subsidiary of China General Technology (Group) Holding Co., Ltd. The purpose of his visit was to explore potential cooperation between the institute and Taiwanese machine tool companies, aiming to foster closer ties across the Taiwan Strait. Following the visit, President Chen held detailed discussions with the institute’s staff, sharing insights about the state of the Taiwanese machine tool industry. Through the ARATS’ ongoing efforts, technical exchanges between the mainland and Taiwan have continued to deepen, paving the way for future collaborations.