Nico Cron
Senior Manager Market Entry Market Entry & Business Development
+886-2-7735-7506 cron.nico@taiwan.ahk.de
Key Facts & Market Volume
- Taiwan’s Smart Machinery Industry Promotion Program began in 2016 to help manufacturers upgrade to smart factories using IoT, AI, robotics, and cloud technologies.
- Taiwan hosts around 18,000 machinery firms with over 340,000 employees, and ranks among the world’s top producers in machine tools, plastics, and woodworking equipment.
- The Smart Machinery Promotion Office, established under this initiative, offers policy guidance, demonstration sites (like Taichung’s Smart Machinery Park), and ecosystem support.
- By 2035, Taiwan aims for a machinery industry production value of EUR 85 billion, supported by smart factory adoption.
- The TIP FactSet Taiwan Industry 4.0 Index, launched June 2023 with 30 companies, has surged over 50% since inception.
- In 2024, President Lai expanded tax incentives for smart machinery and AI investments—raising benefits from 5% to 10% and extending them through 2029.
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18,000 machinery firms
with over 340,000 employees
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85 billion EUR
of machinery industry production value by 2035
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10% of tax incentives
for smart machinery and AI investments until 2029
Important Areas for Collaboration
Latest Trends
Taiwan’s machinery sector is transforming rapidly as companies seek resilience in the face of labor shortages and global competition. Automation, robotics, and AI are at the core of current investments, with the government providing significant tax incentives and support programs. Taiwan’s strategic focus on digital connectivity, data-driven production, and AI-powered systems positions it as a dynamic hub for smart manufacturing in Asia.
Potential for German Companies
With their expertise in precision engineering and factory automation, German companies are well-positioned to shape Taiwan’s industrial transformation. Opportunities lie in delivering end-to-end smart factory solutions, supplying robotics and control technologies, and co-developing intelligent production systems. Taiwan’s dense manufacturing landscape, combined with policy incentives and a skilled workforce, offers fertile ground for long-term partnerships.
