In recent years Taiwan’s fastener industry has shifted from the traditionalproduction of standard fasteners to high-precision, customised productstailored to specific needs. Taiwan’s manufacturers are also activelyexpanding into specialised sectors, such as renewable energy, aerospace andautomotive – showcasing their adaptability to global market changes,technological advances and diverse customer needs.
Today, Taiwan’s fastener industry plays an important role in sectors such as electric vehicles,medical devices and advanced electronics. With growing global demand for high-endcustomised products, Taiwan is enhancing its competitiveness in these fields.
Like many others, Taiwan’s fastener industry has been deeply impacted by ongoinggeopolitical tensions and global uncertainties. These tensions have created uncertainties inglobal supply chains and raw material costs. Additionally, economic disruptions caused byCovid-19 delayed production schedules. This has led to excess inventory within manyindustries. Also, inflation continues to rise in countries around the world. As a result, demandhas decreased, leading to less orders.
Taiwan companies also face challenges such as rising energy costs, labour shortages, andhigher living standards, all contributing to increased production costs. This makes it difficultfor Taiwan’s fastener industry to maintain cost competitiveness, especially compared tocountries with lower production costs. Moreover, Taiwan’s limited participation in someregional trade agreements also restricts its ability to expand its global market reach.
Another key factor impacting the market and gaining importance is environmental andregulatory pressures, such as carbon emissions. The EU’s Carbon Border AdjustmentMechanism (CBAM) will impact the fastener industry worldwide, including Taiwan.Taiwanese fastener manufacturers must adopt sustainable practices and meet carbonemission regulations to stay competitive in global markets. This regulatory shift will addpressure to an already challenging industry environment.
Opportunities and strategies for overcoming challenges
Despite these challenges, Taiwan’s fastener industry has significant opportunities to grow –by embracing innovation and focusing on high value markets. The shift toward sustainablemanufacturing and investments in Smart technologies, such as Artificial Intelligence (AI) andthe Internet of Things (IoT), can help companies meet evolving industry demands.
Additionally, Taiwan’s government is providing support to help businesses adapt toenvironmental regulations, turning challenges like the EU’s CBAM into opportunities forgrowth and enhanced international competitiveness.
One of the key advantages of Taiwan’s fastener industry is the industrial cluster inKaohsiung, which supports a strong, integrated supply chain. This concentration enablesmanufacturers to meet diverse market demands efficiently, from raw material sourcing toprecision manufacturing and surface treatments. The proximity of suppliers also helpsshorten lead times and ensures flexibility in meeting the specialised needs of globalcustomers.
Taiwan’s fastener manufacturers are also highly agile and can quickly respond to markettrends and customer needs. They excel at creating customised, high-quality fasteners forspecialised applications – with their commitment to research and development enabling themto stay ahead of global competition.
This means that Taiwan’s fastener industry is well positioned to seize emerging opportunitiesand tackle global market challenges. As the industry evolves, it will continue to focus oninnovation, sustainability, as well as adaptability, to maintain its competitive edge.
A key showcase for Taiwan’s fastener companies is the 2026 Taiwan Fastener Show, held atthe Kaohsiung Exhibition Center. Under the theme ‘Green Fastening, Precision Attaining’, theshow will highlight cutting edge and innovative products applied in various sectors, includingmaterials, moulds, tools, nuts, bolts, screws and machinery. It will also feature forums andevents designed to foster global collaborations and drive industry growth.
SOURCE:
Will Lowry (23 January 2025), Challenges, opportunities and futureprospects for Taiwan’s fastener industry, Fastener + Fixing Magazine, https://fastenerandfixing.com/insight/challenges-opportunities-and-future-prospects-for-taiwan-s-fastener-industry/
