This article examines the amendment to Article 9 of Taiwan’s Occupational Safety and Health Act, highlighting its role in strengthening source management of machinery and equipment through stricter safety marking rules, production-sales data retention, and market inspection mechanisms. It further explains how the amendment’s emphasis on traceability and data transparency aligns with the European Union’s Digital Product Passport (DPP) framework. For Taiwan’s machine tool industry, the amendment should be viewed not only as a compliance requirement, but also as an opportunity to accelerate digital management and enhance competitiveness in global sustainable supply chains.

This article explores how Taiwan’s machine tool and machinery equipment industries can enhance competitiveness through inherent safety. As smart manufacturing, automation, and human–machine collaboration introduce new risks, equipment safety must move upstream from workplace management to the design and manufacturing stages. Since 2019, Taiwan’s Occupational Safety and Health Administration has promoted an industrial inherent safety initiative through three approaches: machinery risk assessment, industry safety standards, and equipment safety validation. Together, these measures help manufacturers and users build life-cycle safety management. Looking ahead, safety-oriented design will become a key foundation for supply chain trust and global market competitiveness.

Following the EU’s Ecodesign for Sustainable Products Regulation (ESPR), the Digital Product Passport (DPP) is becoming a critical issue for global manufacturing and supply chains. For the machine tool industry, the DPP is more than a compliance requirement; it is a foundation for product data governance, supply chain collaboration and lifecycle services. Taiwanese machine tool companies should begin building unique product identifiers, data mapping and cross-system integration capabilities to transform regulatory pressure into a driver of smart manufacturing, sustainability and international competitiveness.

Amid global supply chain restructuring and geopolitical shifts, Taiwanese machine tool companies are exploring new opportunities in the U.S., Japan, and European markets. Through three practical cases, this article highlights that successful overseas expansion requires more than market strategy; companies must carefully address cost structures, tax and customs planning, labor regulations, visa requirements, and cultural differences. For Taiwan’s SME-dominated machine tool sector, leveraging government support, adopting coordinated industry-wide expansion models, and engaging localized professional expertise will be essential to reducing trial-and-error costs, strengthening operational resilience, and building sustainable competitiveness in advanced international markets.

Driven by net-zero transition and the circular economy, international markets are placing growing emphasis on product information transparency. The EU’s ESPR and Digital Product Passport (DPP) are bringing lifecycle data, material composition, repairability, recycled content, and end-of-life information into market access and compliance management. For Taiwan’s machine tool industry, the DPP should not be viewed merely as a regulatory reporting tool, but as a foundation for data governance, supply chain traceability, and international trust. Companies should begin by reviewing existing ERP, PLM, MES, and BOM data, and gradually build standardized, machine-readable, and interoperable data systems for the era of transparent supply chains.

The EU Cyber Resilience Act (CRA) will introduce mandatory cybersecurity requirements for products with digital elements entering the European market, creating major implications for increasingly connected and digitalized machine tools. This article explains CRA requirements for secure-by-design, secure-by-default, vulnerability management, secure updates, and lifecycle security. It also examines how IEC 62443 can help machine tool builders translate regulatory obligations into practical engineering processes and product security controls. In addition, the article highlights EN 40000 as a future harmonized standard pathway for CRA compliance, urging companies to prepare through product architecture mapping, SBOM management, vulnerability handling, and technical documentation to strengthen export competitiveness.

AMTEX 2026 highlights India’s dual-track machine tool development: continued expansion of basic equipment alongside rapid advancement in high-end smart manufacturing. Local builders are increasingly integrating automation, machine connectivity, production management, and condition monitoring into complete solutions. Taiwanese suppliers can capitalize on this transformation by providing high-precision core components, smart sensing technologies, and application services. A phased market-entry strategy—beginning with local agents, system integrators, technical validation, service hubs, and spare-parts support, followed by local assembly or manufacturing—can help reduce price competition and entry risks while creating sustainable opportunities within India’s expanding manufacturing ecosystem.

The EU Machinery Regulation (MR) and Cyber Resilience Act (CRA) are reshaping the concept of modern machinery safety. As smart manufacturing, industrial IoT and remote maintenance become more common, machinery is no longer an isolated system, and cybersecurity incidents may directly compromise control logic and safety functions. This article emphasizes that future machinery safety will rely on three interconnected pillars: machine safety, functional safety and cybersecurity. Manufacturers should adopt Safety & Security by Design, establish integrated safety engineering processes and lifecycle management, and build a more reliable foundation for next-generation intelligent machinery.

Amid the global shift toward net-zero carbon emissions and smart manufacturing, the machine tool industry is accelerating its transition toward higher efficiency, lower energy consumption, and greater intelligence. This article highlights ITRI’s green machine tool technologies, focusing on two key directions: advanced materials and digital twin optimization. Carbon-fiber composites and mineral casting are applied to improve lightweight design, damping performance, thermal stability, and energy efficiency. Meanwhile, a collaborative digital twin platform integrates AI analysis, process simulation, and energy optimization to reduce trial cutting, shorten development time, and improve machining performance. By combining advanced materials, AI, and digital twins, these technologies support the industry’s move toward higher-value, low-carbon, and sustainable manufacturing.

This article examines how agentic AI is enabling small and medium-sized manufacturers to move from automation toward autonomy. With capabilities in perception, reasoning, planning and action, agentic AI can support real-time production scheduling, predictive maintenance, energy optimization, quality improvement and operational resilience. As the global market expands rapidly, leading industrial players are applying agentic AI in machine tools, robotics and digital twins. For Taiwan’s SMEs, agentic AI is more than an efficiency-enhancing tool; it is a strategic technology for addressing labor shortages, net-zero pressures and supply chain volatility while accelerating both digital and green transformation.

This article received the Special Award in the Machine Tool category at the 22nd HIWIN Master’s Thesis Award. The research primarily addressed the need for tool monitoring in multi-condition cutting environments by integrating vibration signals, machining parameters, tool wear images, and surface roughness data to establish models for critical tool life monitoring, remaining useful life prediction, and surface roughness prediction. The study further incorporated GAN-based data augmentation, transfer learning, and a hybrid AI architecture to improve model accuracy and generalization under different working conditions, and finally integrated these models into an intelligent system with real-time monitoring and warning functions.

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.

The SWISSMEM Symposium 2026 examined manufacturing competition amid global supply chain restructuring, China’s industrial upgrading, and digital transformation. Invited speaker TMBA Chairman Wen-Hsien Chen shared Taiwan’s machine tool industry experience, highlighting its dense supply network, comprehensive industrial clusters, and flexible manufacturing capabilities. He identified System, Focus, Reliability, and Connection as four essential strengths for future competitiveness. Discussions emphasized that quality alone is no longer sufficient, as customers increasingly value speed, collaboration, return on investment, and measurable outcomes. Taiwan’s manufacturing ecosystem offers a strong foundation for turning technological expertise into integrated solutions that create tangible business value for global customers.

AMTEX 2026, held in Greater Noida, India, highlighted North India’s growing manufacturing market and demand across machine tools, automotive, electronics, and capital goods. Under the theme “Precision from Taiwan. Progress for India,” the Taiwan Pavilion showcased Taiwan’s smart manufacturing strengths and integrated supply capabilities. Through forums, technical presentations, media engagement, and buyer matchmaking, the pavilion strengthened business connections between Taiwanese suppliers and Indian manufacturers, demonstrating Taiwan’s role in supporting India’s manufacturing upgrade.

The 2026 Greater Taichung Corporate Volunteer Day was held on August 22, with the TMBA Corporate Volunteer Alliance participating as an event partner in the Mountain Cleanup Initiative organized by the Topkey Education Foundation. Corporate volunteers from the machine tool and accessory industry joined the effort in Taiping District, Taichung, clearing fallen leaves, moss, and weeds along mountain trails despite rainy weather. The activity demonstrated the industry’s commitment to ESG, environmental protection, and social engagement, turning sustainability from a corporate goal into concrete community action.

Under the guidance of the Small and Medium Enterprise and Startup Administration, Ministry of Economic Affairs, the Institute for Information Industry, TMBA, and the Smart Machinery Industry Promotion Office jointly organized the “AI × Robot Smart Manufacturing Total Solution Observation Workshop” during the Taipei International Industrial Automation Exhibition. Through guided exhibition tours and visits to selected booths, the workshop helped manufacturers explore how AI, robotics, automation equipment, and manufacturing data can be integrated to improve production efficiency, optimize processes, enhance quality management, and support unmanned production. The event also encouraged knowledge exchange and advanced Taiwan’s manufacturing sector toward digital transformation and higher-value upgrading.

As the global machine tool industry moves toward digitalization, smart manufacturing, and higher safety standards, functional safety and EMC compliance are becoming key requirements for international market access. TMBA, together with OSHA, MIRDC, PMC, and ETC, organized an information session to help manufacturers understand the documentation, test reports, and application procedures required under the new certification framework expected in 2027. By preparing early, companies can strengthen compliance capabilities, reduce market access risks, and enhance the credibility and competitiveness of Taiwan’s machine tool industry in global supply chains.

The Smart Manufacturing Cross-Industry Collaboration Workshop focused on practical applications of AI in global after-sales service and intelligent assistants. The event explored how smart equipment can help manufacturers overcome language barriers, time-zone gaps, and cybersecurity concerns. AccuteX shared its experience in integrating AI into machine controllers, local knowledge bases, and internal AI platforms, while HUIWEN Technology introduced knowledge-card development, data cleansing, and hybrid cloud-edge deployment. The workshop demonstrated how generative AI can enhance service efficiency, preserve technical expertise, and provide a concrete path for Taiwan’s machine tool industry to advance digital transformation and strengthen global competitiveness.

Taiwan’s machine tool exports totaled US$1.156 billion in January–July 2026, down 1.5% year-on-year, while imports reached US$365 million, up 11.4%. Key machine tool component exports rose 12.3% to US$969 million, while imports increased 28.5% to US$144 million. The data indicate continued pressure on machine tool exports, while component exports maintained solid growth.

Manufacturing activity in the United States continues to strengthen in 2026, supported by record capital investment, rising capacity utilization, and strong demand across key industries. U.S. manufacturing technology orders reached $3.44 billion in the first half of the year, up 36% from 2025 and the highest first-half total on record. Aerospace, AI infrastructure, power generation equipment, and advanced computing investments are driving new equipment purchases and expanding production capacity. Despite concerns over interest rates, inflation, and geopolitical uncertainty, manufacturers remain confident, prioritizing productivity gains, resilience, and long-term growth opportunities through continued investment in manufacturing technology.

Japan’s machine tool orders reached ¥203.38 billion in June 2026, up 14.9% from May and 52.7% year-on-year, marking the highest level on record and the 12th consecutive month of annual growth. Total orders exceeded ¥120 billion for the 16th straight month and surpassed the ¥200 billion threshold for the first time. Domestic orders grew 28.0% to ¥58.02 billion, driven by strong demand from industrial machinery, automotive, and electrical and precision machinery sectors. Foreign orders increased 10.4% to ¥145.36 billion, setting a new record. Robust demand related to AI and robotics continues to support investment, although inflation remains a potential concern.

Taiwan’s machine tool exports reached US$978 million in the first half of 2026, down 3.1% year-on-year, while imports increased 13.1% to US$313 million. June exports totaled US$177 million, falling 8.3% from the same month last year. Major export destinations were China (including Hong Kong), the United States, and India. In contrast, key machine tool components showed strong growth, with exports rising 11.4% to US$814 million and imports increasing 28.2% to US$122 million during January-June. The data highlights resilient demand for components despite a slower recovery in overall machine tool exports.

U.S. manufacturing technology orders reached $583.4 million in May 2026, up 47.8% year-over-year, while cumulative orders for the first five months rose 31.9% from 2025 levels. AMT noted that strong machinery demand reflects continued confidence in the U.S. economy and expectations for future production growth. Investments in automation are accelerating as manufacturers address labor shortages and expand capacity. Aerospace investments and the rapid build-out of data centers have become key demand drivers, with industrial machinery orders reaching their highest level since 2017. The upcoming IMTS is expected to provide further momentum for machinery demand in the second half of 2026

Japan’s machine tool orders totaled ¥177.0 billion in May 2026, down 6.3% from the previous month but up 37.5% year-on-year, marking the eleventh consecutive month of annual growth. Total orders remained above ¥120 billion for the fifteenth straight month, reaching the fourth-highest level on record. Although both domestic and overseas demand declined from April, they stayed at historically high levels. Asia recorded particularly strong growth, with orders surging 66.1% year-on-year. JMTBA expects capital investment demand to remain solid, supported by government policies and continued investments in AI and robotics, while inflation remains a key risk factor.

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