Under the impact of global recession, 911 terrorist attacks and SARS outbreak, aviation industry has suffered heavy setback, which promoted major aircraft manufacturers to seek potential partners to reduce costs and increase competitiveness. Asia Pacific region, nevertheless, thanks to its low labor cost and positive economical outlook, is expected to enjoy steady growth in aviation industry.
Currently, Taiwan has 54 aero structure manufacturers, 35 engine parts makers, 30 companies in interior parts field, 30 avionics makers, and 59 MRO providers involved in aircraft maintenance and aircraft conversion. There are about 170 organizations covering industry, government, academy and research institutes in our aviation industry, employing near 11,500 people. The capabilities established include the design, production, and maintenance for aircraft and aero engines.
By the end of 2003, there are total 116 local companies and 628 product items that have been certified by major aerospace companies such as Boeing, Northrop Grumman, etc. With annual output reaching NT$30 billion, Taiwan aviation industry demonstrates great potential in Asia area.
Taiwan government is now aggressively promoting "Aviation Industry Development Program" to establish a full industrial system for the aviation industry. Some cooperation programs with world-class aerospace companies are being discussed, including the regional jet, business jet, engine parts manufacturing and MRO shop setup. By joining the global supply chain network through these cooperation programs, Taiwan can prompt the technological upgrade of local traditional industries and further increase Taiwan's economical status in global markets.