ABSTRACT
This chapter explains the evolution of Taiwan’s machine tool industry and some of the vital reasons for its success: the existence of entrepreneurs with strong technical backgrounds, a Southeast Asian market developed from the Vietnam War (in the 1960s), the US market (in the 1970s and 1980s), and the critical components supplied from Japanese manufacturers. The industry started during the recovery period after World War II. Production mainly served to satisfy the local demand to reestablish industries. Then, production shifted to take advantage of the export opportunity that accompanied Taiwan’s economic growth. Taiwan’s machine tool manufacturers have achieved success after decades of hard work. Currently Taiwan is the eleventh-largest manufacturer of machine tools in the world. On May 21, 1986, the Reagan Administration announced that the United States would negotiate with Taiwan, West Germany, Japan, and Switzerland for cooperation on a five-year agreement of volunteer export restrictions from these countries.
