Insight

By Taiwan External Trade Development Council (TAITRA)

In recent years Taiwan’s fastener industry has shifted from the traditional production of standard fasteners to high-precision, customised products tailored to specific needs. Taiwan’s manufacturers are also actively expanding into specialised sectors, such as renewable energy, aerospace and automotive – 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-end customised products, Taiwan is enhancing its competitiveness in these fields.

Like many others, Taiwan’s fastener industry has been deeply impacted by ongoing geopolitical tensions and global uncertainties. These tensions have created uncertainties in global supply chains and raw material costs. Additionally, economic disruptions caused by Covid-19 delayed production schedules. This has led to excess inventory within many industries. Also, inflation continues to rise in countries around the world. As a result, demand has decreased, leading to less orders.

Taiwan companies also face challenges such as rising energy costs, labour shortages, and higher living standards, all contributing to increased production costs. This makes it difficult for Taiwan’s fastener industry to maintain cost competitiveness, especially compared to countries with lower production costs. Moreover, Taiwan’s limited participation in some regional trade agreements also restricts its ability to expand its global market reach.

Another key factor impacting the market and gaining importance is environmental and regulatory pressures, such as carbon emissions. The EU’s Carbon Border Adjustment Mechanism (CBAM) will impact the fastener industry worldwide, including Taiwan. Taiwanese fastener manufacturers must adopt sustainable practices and meet carbon emission regulations to stay competitive in global markets. This regulatory shift will add pressure 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 sustainable manufacturing and investments in Smart technologies, such as Artificial Intelligence (AI) and the Internet of Things (IoT), can help companies meet evolving industry demands.

Additionally, Taiwan’s government is providing support to help businesses adapt to environmental regulations, turning challenges like the EU’s CBAM into opportunities for growth and enhanced international competitiveness.

One of the key advantages of Taiwan’s fastener industry is the industrial cluster in Kaohsiung, which supports a strong, integrated supply chain. This concentration enables manufacturers to meet diverse market demands efficiently, from raw material sourcing to precision manufacturing and surface treatments. The proximity of suppliers also helps shorten lead times and ensures flexibility in meeting the specialised needs of global customers.

Taiwan’s fastener manufacturers are also highly agile and can quickly respond to market trends and customer needs. They excel at creating customised, high-quality fasteners for specialised applications – with their commitment to research and development enabling them to stay ahead of global competition.

This means that Taiwan’s fastener industry is well positioned to seize emerging opportunities and tackle global market challenges. As the industry evolves, it will continue to focus on innovation, 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 at the Kaohsiung Exhibition Center. Under the theme ‘Green Fastening, Precision Attaining’, the show will highlight cutting edge and innovative products applied in various sectors, including materials, moulds, tools, nuts, bolts, screws and machinery. It will also feature forums and events designed to foster global collaborations and drive industry growth. 

Fastener Taiwan 2026 will bring together international professionals and Taiwanese suppliers, creating opportunities for strategic partnerships and global business cooperations. The show dates in 2026 will soon be announced on the official website.