This article argues that drones have shifted from niche reconnaissance platforms to expendable munitions, reshaping warfare and forcing defense supply chains toward rapid, high-volume production. As geopolitical tensions drive global “de-risking” from China-dominated ecosystems, Taiwan’s precision machinery sector can become a trusted, non-China supplier for advanced UAV systems. It outlines required capabilities—multi-axis machining, mill-turn integration, and processing of titanium, magnesium, and CFRP—across key drone modules, while identifying gaps in payloads, propulsion, and semiconductors. Finally, it highlights policy support and RTO-led partnerships to build resilient, certified supply chains.

This article argues that the real challenge for AI adoption in the machine tool industry lies not in technology, but in creating practical value for customers and decision‑making. Many firms have completed digitalization but failed to turn data into actionable insights, resulting in increased operational burden. AI should focus on measurable improvements in efficiency, quality, and management outcomes, starting with small, low‑risk applications. As hardware prices become commoditized, future competitiveness will depend on service‑based models and value‑added capabilities rather than equipment sales alone.

Starting from observations at TMTS 2026, this article argues that Taiwan’s machine tool industry has reached a critical turning point where AI must evolve from fragmented pilot projects into systematic transformation. Through six dimensions—management methodology, governance frameworks, technology integration, organizational transformation, international compliance, and value realization—the paper highlights that AI success is not determined by isolated technologies, but by leadership, standardized processes, and lifecycle governance. Enterprises that embed AI into core operations and integrate it across systems can convert technological potential into measurable productivity, resilience, and long‑term competitive advantage.

As of 2026, the global manufacturing industry stands at a historic and critical turning point. Geopolitical shifts are restructuring supply chains, rising tariff barriers are forcing enterprises to seek new markets, and the exponential explosion of AI technology is accelerating automation and intelligent manufacturing. Simultaneously, net-zero carbon emission regulations are driving industrial investment into green production. The machine tool industry—the core of manufacturing known as the "Mother of Machines"—is undergoing an unprecedented reshaping. In the past, the competitiveness of the machine tool industry depended primarily on the cutting speed and precision of hardware. Today, the winning edge has shifted toward software-defined capabilities, data integration, and green sustainability.

In 2026, the global manufacturing industry stands at a critical crossroads of transformation. Following years of supply chain restructuring and technological iterations, Taiwan’s machine tool industry is witnessing a significant economic rebound in 2026. Bolstered by a stabilizing international trade environment, Taiwanese products—renowned for high quality, flexibility, and cost-performance—have officially joined the ranks of "Most Favored Allies" within the global green supply chain. Against this backdrop, the Taiwan International Machine Tool Show (TMTS 2026) will grandly debut from March 25 to 28, 2026. Under the core theme "AI-Powered Sustainable Manufacturing," the event utilizes three primary drivers—Intelligence, Green Transition, and Ecosystem Integration—to propel Taiwan’s manufacturing sector toward a higher echelon of digitalization and internationalization.

Wishing you great success in your endeavors and swift achievements in the Year of the Horse. Convener of the Board of Supervisors Wen-Heng Cho, Standing Supervisor Chen-Peng Wang, Standing Supervisor Yi-Hsuan Hsieh, Supervisor Cheng-Chun Yang, Supervisor Chia-Ho Chuang, Supervisor Ju-Wen Hsieh, Supervisor Kuan-Ling Chen, Supervisor Liang-Chi Yu, and Supervisor Tsung-Nan Tsai Taiwan Machine Tool & Accessory Builders’ Association (TMBA)

This study develops an automated geometric error measurement and compensation system for the dual rotary axes (A- and B-axes) of a horizontal five-axis machining center in accordance with ISO 230 standards. A single-point touch probe, homogeneous transformation matrices, and a two-stage batch analysis strategy are employed to identify location and motion-dependent errors. The system integrates OPC UA communication to automatically generate and import volumetric compensation data into the CNC controller. Experimental results and NAS979 cutting tests confirm that the proposed approach significantly improves rotary-axis accuracy and overall volumetric precision.

In today’s landscape, where smart manufacturing has become the core competitive advantage of the industry, machining simulation and verification have evolved from auxiliary tools to critical components ensuring the reliability and efficiency of digital manufacturing. With the rapid popularization of automation and AI, the design of toolpaths and machining parameters is shifting from manual expertise toward algorithmic generation. While this significantly enhances design efficiency and innovation speed, it introduces a pivotal challenge: how to verify that automatically generated data can be executed safely on actual production lines while maintaining quality.

To modern eyes, the world's first automobile looks like little more than a horse-drawn carriage equipped with an engine. At the birth of the automobile, the core focus of humanity was simple: how to use mechanical design to make a vehicle actually move. However, as technology matured and demands evolved, the definition of the automobile continuously expanded. It grew from mere mobility to encompass passenger comfort, safety, and convenience, eventually becoming a symbol of lifestyle and personal value. Today, the industry's focus has shifted further toward the environment and energy; the advent of electric vehicles (EVs) is once again rewriting the competitive landscape of global manufacturing.

Under proactive government promotion, AccuteX Technologies has executed the "A+ Industrial Innovation R&D Program" (International Innovation R&D Collaboration) funded by the Department of Industrial Technology (DoIT), Ministry of Economic Affairs (MOEA). This Taiwan-Spain R&D collaboration spanned 31 months, from September 1, 2022, to March 31, 2025. During this period, AccuteX and its international partner, ONA (Spain), completed the development of the AZ Series, a new generation of Wire Electrical Discharge Machining (WEDM) products. These machines feature technical highlights designed to enhance quality, productivity, automation, sustainability, and advanced digital services. By leveraging ONA’s expertise in automation and the aerospace industry within the European market, this partnership has elevated AccuteX’s technical standards to meet EU certifications, further fostering bilateral commercial cooperation.

Electrical Discharge Machining (EDM) is a critical process in aerospace manufacturing. Traditionally, it has relied heavily on manual experience for parameter tuning, a tedious process that lacks real-time optimization, significantly impacting efficiency and precision. This study developed "AI-Optimized EDM Equipment for Aerospace," utilizing AI self-adaptive technology to pioneer the intelligent adjustment of EDM parameters, enabling real-time monitoring and compensation mechanisms. This innovation reduces finishing time by over 50% and enhances machining precision to within 5 μm. It drives the efficiency and precision upgrades of aerospace-grade components, representing a revolutionary breakthrough for high-end manufacturing. Furthermore, the equipment integrates AIoT centralized management for cross-border remote data monitoring and creates production logs to ensure stability and global supply chain responsiveness. The technology has been implemented by several manufacturers, including First EDM and Joemars, successfully applied to key aerospace engine components and the intelligent upgrading of high-end electric vehicle (EV) connector terminal molds.

From October 22 to 25, "Mechatronics Technology Japan (MECT) 2025" was held at the Port Messe Nagoya in Minato-ku, Nagoya. A record-high 524 companies and organizations participated, attracting a total of 77,613 visitors over four days—slightly exceeding the attendance of the previous exhibition. Despite the challenging domestic sales environment for the Factory Automation (FA) industry, particularly in machine tools, the venue saw vibrant business negotiations. This final report summarizes the highlights of the exhibition and seminars, reviewing the overall performance of MECT 2025.

The Advanced Smart Manufacturing Technology Alliance of National Chung Hsing University will host the '2026 Forum on High-Bandwidth Interconnects in the AI Era: Design, Testing, and Mass Production of Advanced Packaging × Silicon Photonics.' The forum will feature Professor Jing-Wei Pei from the university’s Institute of Photonics, along with several industry experts as speakers. Through the valuable experiences shared by the speakers, the event aims to help participants gain insights into silicon photonics applications, mass production testing, and the industrial development of advanced semiconductor packaging.

COMPUTEX 2026 will, for the first time, officially establish an AI Robotics Exhibition Area at the Xinyi World Trade Center, together with the Technology Experience Zone to create the most futuristic showcase of technology. This is the best opportunity to demonstrate Taiwan’s strength in AI Robotics and its capability in supply chain integration to global buyers. As exhibition booths in all other halls are already fully booked, the organizer has reserved only a very limited number of booths at the Xinyi World Trade Center exclusively for companies in AI robotics-related technologies and products. Availability is limited, so don’t miss the chance to apply.

aiwan’s Smart Machinery Overseas Promotion Program, led by DITA, made its first 2026 stop at SIMTOS in Korea. A 72 m² Taiwan Image Zone showcased a smart-machinery value-chain ecosystem with 10 exhibitors, backed by four industry associations and boosted by localized influencer marketing to draw qualified buyers. On-site observations showed Korean machine-tool leaders accelerating AI adoption. Taiwan identified two entry points: customized large gantry machines and highly flexible components supported by co-exhibition tactics, creating strong opportunities for complementary Taiwan–Korea partnerships.

CCMT 2026 was held in Shanghai from April 21 to April 25, drawing strong attention with the theme “Digital, Connected, Intelligent Manufacturing,” showcasing the machine tool industry’s post-pandemic transformation. The exhibition covered 202,000 square meters and featured over 2,000 exhibitors from 27 countries and regions, attracting more than 270,000 visits in total. The CEO Forum highlighted that the industry is shifting from equipment supply toward data-driven, end-to-end solution offerings to meet emerging demands such as humanoid robots and semiconductor packaging, as well as the trend toward carbon neutrality. Domestic manufacturers are seeking breakthroughs through integrated hardware-software solutions, AI-enabled CNC systems, and an NC Link–based connectivity ecosystem, while also leveraging digital twins to drive GX energy-saving design.

SIMTOS 2026 adopted the theme “AI Autonomous Manufacturing Meets Talent,” showcasing how Korea’s machine-tool industry is moving beyond digitalization toward true autonomy. The show’s AI Factory Theme Pavilion demonstrated next-generation manufacturing systems that integrate equipment, data, Digital Twin capabilities, and big-data analytics. Exhibits emphasized practical AI functions such as self-learning optimization, real-time decision-making, and predictive maintenance, pointing to a future where machining can scale from individual smart machines to lights-out, plant-wide operations. The event also highlighted a key workforce shift: technicians are evolving from traditional operators into supervisors and decision-makers who manage AI-enabled production systems, accelerating human–machine collaboration. In parallel, a Taiwan delegation brought 11 exhibitors presenting CNC machining solutions and critical components, strengthening market visibility in Korea and expanding opportunities for technical exchange and partnership.

TMTS 2026 introduces the "Front Showroom, Back Factory" model, connecting exhibition booths with real manufacturing sites. International buyers visited leading firms like TMT, Leadwell, and Quaser to witness R&D, precision assembly, and smart data integration firsthand. This initiative transforms catalog data into tangible technical experiences, building deep trust in Taiwan’s quality and transparency. By showcasing advanced smart manufacturing capabilities, the industry effectively strengthens global partnerships and responds to evolving market demands.

he award ceremony for the 22nd Hiwin Thesis Award was held with great distinction on March 28. Student Shen Yi-Hsuan and Professor Lin Pei-Chun from National Taiwan University (NTU) received the highest honor, the Gold Award, for their thesis titled "Development of a Whole-Body Force Control Framework for RHex-type Robots with Variable Multiple Contact Points." The award includes a prize of NT$1 million. This year, NTU recommended 14 theses for the competition, 9 of which reached the final defense, and 6 ultimately secured awards. This outstanding performance established NTU as the biggest winner of the session.

When AI is no longer just a tool for process optimization but begins to "learn, judge, and inherit expertise," the competitive logic of the manufacturing industry is undergoing a total transformation. In collaboration with TechOrange, the TMTS 2026 International Forum provided an in-depth analysis of how Embodied AI is entering production lines and how human experience is being digitally replicated. The forum explored topics ranging from AI robotics and Digital Twins to defense, aerospace, and semiconductor supply chains, highlighting how Taiwan's machine tool and precision machinery industries are building a more resilient intelligent manufacturing ecosystem amidst geopolitical shifts and high-volatility environments.

In March 2026, Japan’s machine tool orders totaled ¥193.47 billion, up 31.8% month-on-month and 28% year-on-year, marking nine consecutive months of growth and a record high. Domestic orders reached ¥50.47 billion, rising 35.8% from February and 2.5% year-on-year, with increases across industrial machinery, motor vehicles, precision equipment, and aerospace/shipbuilding. Foreign orders surged to ¥143.0 billion, up 30.5% month-on-month and 40.4% year-on-year, the 18th straight month of growth. Orders from Asia, Europe, and North America all showed strong gains, reflecting robust global demand.

In 2025, Germany’s machine tool industry remained under pressure. Orders fell 3% overall, with domestic demand down 16% and foreign orders up 3%. Production dropped 8% to €13.6 billion, 20% below 2018 levels, with a real gap of 35%. Exports declined 9%, driven by U.S. trade policy and fierce Chinese competition. Capacity utilization averaged just 76%, while employment fell to 62,700, down 4.1%. Investment in new machinery stayed weak, though services and retrofitting supported demand. Automotive remained sluggish, but defense, aviation, medical technology, and electronics provided some positive momentum.

In March 2026, Japan's machine tool orders reached a record 163.27 billion yen, up 11.3% monthly and 21.6% annually. Domestic orders surged 20.2% month-on-month, driven by fiscal year-end seasonal demand. Foreign orders also grew by 21.7% year-on-year, bolstered by robust capital spending in Asia and North America. The data reflects persistent global demand for advanced smart manufacturing equipment, maintaining a positive outlook for the industry.

In February 2026, Japan's machine tool orders rose to 146.74 billion yen, up 0.8% monthly and 24.0% annually, marking eight consecutive months of growth. Domestic demand rebounded by 13.9% due to automotive and machinery sectors. Despite a 3.0% monthly decline, foreign orders surged 29.8% year-on-year, driven by strong performance in North America and Europe. The data reflects a robust recovery in the global market, sustaining industry momentum.

In January 2026, Japan's machine tool orders totaled 145.58 billion yen, a month-on-month decrease of 8.2% but a year-on-year increase of 25.3%, marking seven consecutive months of growth. Foreign demand remained strong at 112.96 billion yen, rising 34.2% annually. Domestic orders dropped 18.2% monthly due to sluggishness in automotive and industrial machinery. Despite global uncertainties, robust growth in Asia suggests a positive outlook for future capital investment.

January 2026 Taiwan Machine Tool Import and Export Statistics Machine Tool Exports and Imports In January 2026, Taiwan's total machine tool exports reached approximately US$156 million, representing a 15.7% increase compared to the same period last year. Total imports stood at US$50.05 million, a 34.8% decrease year-over-year. Machine Tool Key Components For key components of machine tools, the total export value in January 2026 was approximately US$129 million, growing by 31.2% compared to the previous year. The total import value for these components was US$17.83 million, a significant 63.1% increase year-over-year.