Taiwan showcases industrial strength as President Lai pledges support for hardware sector

Taiwan's industrial prowess took center stage this week as two major trade exhibitions opened on Oct. 20, with President Lai Ching-te (賴清德) pledging stronger government support for the island's hardware manufacturers amid an accelerating shift toward AI, advanced manufacturing and global supply chain restructuring.

Taiwan's hardware industry takes the spotlight

The 2026 Taiwan International Tools & Hardware Expo x International Hardware Expo Taiwan (TiTE x IHT), held from Oct. 20 to 22 at the Taichung International Convention and Exhibition Center, has brought together approximately 450 exhibitors across more than 1,000 booths.

Organized by the Taiwan Hand Tool Manufacturers' Association and Lanza International, the exhibition operates under the theme "TEAM TAIWAN: From Manufacturing to Co-Creation | AI Empowerment & Smart Upgrading."

The event highlights Taiwan's extensive manufacturing capabilities, spanning traditional hand tools and fasteners to automotive maintenance equipment, industrial automation and intelligent manufacturing solutions.

Speaking at Tuesday's (Oct. 20) opening ceremony, Lai underscored the hardware industry's importance to Taiwan's manufacturing foundations and its longstanding reputation for quality, precision and reliability.

According to figures cited by the president, Taiwan is home to approximately 2,500 hardware and tool manufacturers, whose combined exports reached NT$112 billion (US$3.5 billion) in 2025, placing the country among the world's five largest hardware and tool exporters.

Lai also highlighted the exhibition's expansion from approximately 800 booths last year to more than 1,000 this year, describing the growth as evidence of the industry's strength and market potential.

Government support and international competitiveness

Against a backdrop of evolving international trade conditions, Lai reiterated the government's commitment to strengthening the competitiveness of Taiwan's small and medium-sized enterprises (SMEs).

He pointed to the reciprocal trade agreement signed between Taiwan and the United States in February, under which Taiwan secured a 15% reciprocal tariff rate without additional stacking of most-favored-nation tariffs.

According to Lai, the arrangement places Taiwanese exporters on comparable terms with competitors in Japan and South Korea, while reciprocal tariff exemptions covering 2,072 product categories offer further advantages to industries including hand tools, plumbing hardware and machine tools.

The president also outlined measures designed to accelerate industrial transformation.

These include a NT$93 billion special resilience budget intended to support industries affected by international developments, alongside plans to invest an additional NT$100 billion over eight years to strengthen smaller businesses through financing, workforce development, technological innovation, digitalization and net-zero transformation.

Lai said government assistance would increasingly focus on helping traditional manufacturers enter higher-value markets, including semiconductor manufacturing, AI, aerospace maintenance, robotics and defense-related industries.

Global buyers and smart manufacturing

Beyond the government's policy commitments, this year's TiTE x IHT exhibition emphasizes international procurement opportunities and industrial collaboration.

Organizers have arranged a record program involving more than 100 hosted international buyers, with procurement representatives drawn from North America, Europe, Asia and emerging markets.

The exhibition also promotes an "Exhibition as Factory" sourcing model, enabling international buyers to combine trade show visits with meetings and inspections at nearby manufacturing facilities.

The initiative capitalizes on central Taiwan's densely concentrated industrial clusters, bringing together manufacturers specializing in hardware, hand tools, precision machinery, metal processing and fasteners.

Taiwan Industry Week highlights AI and sustainability

Meanwhile, Taiwan Industry Week 2026 opened on Oct. 20 and runs through Oct. 22 at Taipei Nangang Exhibition Center, Hall 2, bringing together 406 exhibitors across eight specialized exhibition areas.

The three-day event features more than 6,000 exhibits and is expected to attract more than 40,000 professional visits by buyers from over 80 countries.

A particularly prominent feature of this year’s event is the new data center themed zone, which showcases liquid cooling, modular data center solutions, high-speed transmission, power supply and smart infrastructure technologies designed to address the growing demands of AI computing.

Organizers have also scheduled 183 business matchmaking sessions and 83 professional conferences, forums and related activities.

Together, the two exhibitions held in central and northern Taiwan illustrate the breadth of Taiwan's industrial capabilities, from established hardware manufacturing to the increasingly sophisticated infrastructure underpinning emerging technologies.

Sustaining that competitiveness will “require closer cooperation between established manufacturers and younger generations of innovators,” according to Lai’s comment at TiTE x IHT.

He added that it is imperative to ensure that the international reputation of "Made in Taiwan" continues to evolve and shine alongside the industries it represents.