Textile exports have always been a major source of foreign exchange earnings for Taiwan, and the textile sector as a whole played an important role in Taiwan renowned economic miracle. However, for a period of time not long ago, this sector in Taiwan was widely viewed as a sunset industry, whose decline seemed inevitable as factory closures and relocations to other countries multiplied and domestic production steadily fell as a result of a range of factors, including increasing raw material and labor costs, an appreciating local currency, and the rise of mainland China textile industry.
In order to survive and tap new opportunities, Taiwan textile manufacturers began actively investing their resources in fabric research and development and in creating key new technologies. According to Taiwan Textile Federation statistics, more than 4,000 Taiwan textile enterprises have been able to weather the storm and continue operating to the present day, relying primarily on a strategy of innovation and R&D to secure a share of the global market. Meanwhile, the government has lent important support in the Taiwan textile sector drive to remain competitive with a focus on the creation of functional and high-added-value fabrics and clothing.