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)

Wishing you prosperity and good fortune in the Year of the Horse, and great success as you stride into a new journey. Director Yi-Ying Huang, Director Bing-Jie Peng, Director Shui-Jin Huang, Director Che-Hua Chang, Director Chi-Chien Chien, Director Chien-Yu Lin, Director Wei-Yi Huang, Director Shih-Yu Chang, Director Chih-Peng Cheng, Director Ya-Hui Kuo, Director Yao-Te Huang, Director Ming-Hsi Wu, Director Fu-Hsiang Hsu, Director Chang-Yu Lin, Director Chien-Jen Chen, Director Chen-Yung Lin, Director En-Chih Chang, and Director Yu-Yi Yu Taiwan Machine Tool & Accessory Builders’ Association (TMBA)

Wishing you a prosperous Year of the Horse and a year filled with vigor and success. Chairman Patrick P. Chen, Vice Chairman Cheng Chen, Vice Chairman James Hu, Vice Chairman Alan Lin, Executive Director King Wang, Executive Director Yen Lu, Executive Director Jack Wu, Executive Director Startin Hsieh Tien-Hsin, and Executive Director Alan Huang Taiwan Machine Tool & Accessory Builders’ Association (TMBA)

Net-zero carbon reduction has become a critical global issue faced collectively by the international community. Since COP26, countries around the world have progressively incorporated the goal of “net-zero emissions by 2050” into the core objectives of their climate action agendas, while continuing to strengthen their medium- and long-term decarbonization commitments. As international climate governance frameworks advance, governments are increasingly accelerating the implementation of emissions reduction measures across industrial and service sectors based on the outcomes of the Global Stocktake. In alignment with these international trends, Taiwan has also established phased greenhouse gas reduction targets under the Climate Change Response Act and is promoting deep energy efficiency policies, demonstrating a clear policy direction toward driving low-carbon transformation across industry and service sectors. In line with these global trends, Taiwan has established phased greenhouse gas reduction targets under the Climate Change Response Act and is advancing deep energy efficiency policies to support the low-carbon transformation of both industry and service systems. Against this backdrop, Taiwan—long recognized as an export-oriented economy—is facing structural shifts in global supply chains and international trade. In recent years, international buyers evaluating suppliers and equipment purchases have begun to look beyond traditional criteria such as quality, price, and delivery schedules. Carbon management capabilities, sustainability governance practices, and energy efficiency in manufacturing processes are increasingly incorporated into procurement decisions. Through concrete purchasing policies and supply chain management mechanisms, sustainability requirements are being translated into binding commercial conditions. Sustainability is no longer merely a matter of corporate image or added value; it is gradually becoming a prerequisite for market access, reshaping competitive thresholds and the criteria used in international trade assessments. For export-driven industries, competition is no longer confined to products alone but extends to entire manufacturing systems and supply chain capabilities.

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.

If Generative AI serves as the "brain," responsible for understanding and reasoning, Agentic AI functions as the "executor" capable of perceiving, deciding, and taking action. Beyond 2026, aerospace manufacturing will evolve from Human-Machine Collaboration toward a more advanced model of Human–AI Symbiosis, with the Model Context Protocol (MCP) emerging as the critical protocol connecting everything. Unlike traditional AI systems that primarily provide recommendations (e.g., Suggesting tool replacement), Agentic AI operates through a closed-loop architecture encompassing Perception, Reasoning, Planning, and Action. When assigned a high-level objective—such as optimizing a weekly production schedule to minimize changeover time— Agentic AI can autonomously orchestrate and invoke multiple tools, systems, and data sources to execute the task.

Standing at the dawn of 2026, the global manufacturing sector is undergoing an unprecedented reconfiguration of its cognitive and operational frameworks. The aerospace industry, long the benchmark for precision engineering and uncompromising quality—now stands at the epicenter of this transformative wave. Aerospace Industrial Development Corporation (AIDC), a leader in the aerospace sector, is actively promoting its AIxWARE smart manufacturing services. This initiative provides a deep analysis of how the aerospace industry is transitioning from a traditional reliance on the "tacit knowledge" of seasoned craftsmen to a data-driven approach, moving further toward an era of autonomous execution powered by Agentic AI.

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.

In the spring of 2026, Kielce will again become one of the most important points on the Central and Eastern Europe’s industrial map. From 24 to 27 March, Targi Kielce will host the next Industrial Spring – an event that has set the direction for the development of modern industry for years and consistently built its position as a brand in its own right.

In the field of precision machinery, where accuracy, efficiency, and stability are paramount, the automation of a single machine or piece of equipment is no longer a competitive advantage. The key to success lies in whether the control system can simultaneously balance performance, flexibility, and future scalability.

In the landscape of Taiwan’s machine tool industry, "precision" is our foundation and "efficiency" is our pursuit. However, 2025 marked a milestone for the Taiwan Machine Tool & Accessory Builders’ Association (TMBA) in demonstrating its "soft power." Through the "TMBA Corporate Volunteer Alliance," initiated by the Social Responsibility (S) Committee, we wrote countless moving chapters in the second half of the year. From accompanying seniors in the height of summer to mountain cleaning in autumn, and mobilizing support for the underprivileged at year-end—every drop of sweat and every donation converged into the most powerful warm current for industrial transformation.

With positive news of Taiwan-U.S. trade negotiations securing Most Favored Nation (MFN) treatment, a glimmer of hope for a recovery in Taiwan's machinery industry at the start of 2026 is beginning to take shape. Seizing this turning point in the industrial landscape, Victor Taichung held its grand "2026 Smart Manufacturing & AI Supply Chain Alliance Exhibition" at its global headquarters from January 22nd to 23rd. This event was more than just a technical display or a new product launch; it was a strategic innovation that disrupted traditional exhibition models and reinvented marketing and manufacturing mindsets.

President Lai Ching-te received the delegation of the Taiwan Machine Tool & Accessory Builders’ Association (TMBA) this afternoon (the 20th). During the meeting, the President announced that tariff negotiations between Taiwan and the United States concluded last Friday, finalizing a reduction of tariffs on Taiwanese exports to the U.S. to 15% without cumulative surcharges. This development provides robust support for the industry. President Lai expressed his hope that all Taiwanese industries will align with the nation’s strategic direction to create win-win outcomes, enabling businesses to remain rooted in Taiwan while expanding their global footprint and marketing to the world.

Following a year of structural adjustments and market challenges in 2025, the Taiwan machine tool industry has welcomed a significant economic turnaround at the start of 2026. During the "TMTS 2026 and Machine Tool Industry Outlook Press Conference" held today (Jan 20), the Taiwan Machine Tool & Accessory Builders’ Association (TMBA) announced that the global industrial production cycle has entered a growth phase. Surging demand for high-precision equipment is being driven by semiconductor expansion, the energy transition, and a boom in aerospace and defense. Furthermore, with the official signing of the Taiwan-U.S. Reciprocal Tariff Agreement, Taiwan's machine tool production value and export profitability are set for a comprehensive recovery in 2026. This pivotal turning point will be spearheaded by the Taiwan International Machine Tool Show (TMTS 2026) in March, showcasing Taiwan’s robust resilience in smart manufacturing and its international competitiveness to the world.

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.

U.S. metalworking machinery orders reached a record $814.3 million in December 2025, pushing the full‑year total to $5.74 billion, up 22.5% from 2024. After bottoming out in mid‑2024, demand recovered with support from IMTS, lower interest-rate pressure, and favorable tax policies. While order value rose steadily, unit counts were more volatile, reflecting industry uncertainty and long‑term investment behavior. Aerospace and commercial/service machinery drove growth, while machine shops lagged slightly. Strong investment trends and rising industrial activity are expected to continue into 2026, supported by AI‑related demand, metal industry expansion, and improved economic alignment.

Heller and DN Solutions look forward to creating a partnership for innovation and growth through this acquisition - Strategic partnership strengthens their position in precision engineering. - The acquisition comes at a pivotal time, with major industries experiencing strong revival. - The two companies join forces to preserve HELLER’s brand identity and build a one-stop-shop in machine tool manufacturing.

U.S. industrial production and capacity utilization improved toward the end of 2025, with machinery manufacturing showing solid annual growth. Rising utilization in technology-intensive industries is driving capital equipment demand, positioning manufacturers to expand capacity and efficiency and support further output growth into 2026.

According to the 2025 Jan-Dec statistics for Taiwan’s machine tool imports and exports, total exports reached US$2.004 billion, a 9.6% decrease year-on-year, while total imports amounted to US$643 million, representing a 16.4% increase compared to the same period last year. Statistics for Taiwan's key machine tool components from January to December 2025 show that total exports were US$1.506 billion, a slight decrease of 0.3% year-on-year, whereas total imports rose to US$197 million, a 10.5% increase compared to the previous year.

U.S. metalworking machinery orders eased in November 2025 but remained above historical norms. Year-to-date orders through November rose nearly 18% from 2024. Continued late-year investment suggests solid market fundamentals and potential growth in manufacturing activity heading into 2026.