Due to the impact of U.S. tariffs and an unfavorable business environment, the number of factory and office ownership transfers in the Taichung Industrial Park has increased. Yang Te-Hua, chairman of the major machine tool manufacturer Ching Tai Group, which has a factory in the park, also said that there are three plots of land totaling nearly 5,000 ping (around 16,500 square meters) near his factory that are about to change hands. He added that it’s not just the machine tool industry that is struggling—many traditional industries are also in poor condition. In addition, a medium-sized machine tool manufacturer in central Taiwan is about to shut down, and the outlook for the machine tool industry does not seem optimistic.
Chen Yung-Chuan, general manager of Deep Roots Real Estate Development, said this morning that in the past month alone, he has received as many listings for factory and office properties for sale in Taichung Industrial Park as in the entire first half of the year—a sudden surge of at least 20 cases. The industries involved include heat treatment, sanitary ware, printing, and plastics. The exact reasons are unclear, but from an industrial perspective, operations have been difficult since the pandemic. After Donald Trump took office, U.S. tariffs added further pressure, making it hard for many businesses to continue. Coupled with second-generation succession issues and worsening labor conditions, many chose to wind down their operations. However, buyers are not enthusiastic. For every ten properties up for sale, there are only about three potential buyers.
Yang also lamented that in the past, when the economy was strong, once a factory in the Taichung Industrial Park went on sale, buyers would immediately step in. But now things are different. He said that near his factory on Gongye 5th Road, several plants are for sale, and when he drives by every morning, he notices that few people are around—business has indeed declined. The three plots of land total nearly 5,000 ping. He noted that not only machine tools but also industries such as bicycles, screws, and molds are suffering—it’s a widespread issue.
Regarding the machine tool industry, he explained that from September 2020 to September 2025, the Japanese yen depreciated by 42.4% against the U.S. dollar, while the New Taiwan dollar only depreciated by 3.61%. Moreover, the U.S. imposes a 15% reciprocal tariff on Japanese products (non-cumulative), while Taiwan faces a 20% reciprocal tariff on top of existing tariffs—a roughly 10% difference. As a result, Japanese machines are now 20–30% cheaper than Taiwanese ones, and buyers prefer Japanese products. Even when the prices of Taiwanese and Japanese machine tools are the same, Japanese firms still make a profit, while Taiwanese ones incur losses.
Meanwhile, China’s machine tool output has caught up in recent years, and Chinese companies have been actively acquiring European firms, rapidly increasing their competitiveness. The situation for Taiwan’s machine tool industry is extremely challenging. A medium-sized machine tool manufacturer in central Taiwan has recently laid off its employees and is about to officially announce its closure due to the difficult external environment. The future of the entire machine tool industry will likely become clear next year.
