Government Targets US$4.4 Billion In Textile-Upgrade Investment by 2008

The government hopes to revitalize Taiwan's textile industry by stepping up financial support aimed at encouraging manufacturers to invest more over the next five years. The target is for NT$150 billion (US$4.4 billion at NT$34:US$1) of investment in the upgrading of production capacity and skills for high-added-value fabrics, according to Economics Minister Lin Yi-fu.

The ministry announced the target at a recent event showcasing the results of research and development efforts carried out over the past three years by the China Textile Institute, the Chemical Lab of the Industrial Technology Research Institute (ITRI), and the Taiwan Textile Federation in cooperation with more than 40 private textile companies. The investment in these R&D efforts totaled an estimated NT$200 million (US$5.9 million).

The three research institutions are private corporate bodies with financial backing from the Ministry of Economic Affairs. They transfer the technology they develop to private textile manufacturers, which commission many of their R&D projects.

Private companies showing off their products at the recent event included Chung Shing Textile, Shinkong Synthetic, Taiwan Taffeta, and Eclat Textile. Most of the products were "functional fabrics" featuring multiple functions, and included polyester filament with a square cross-section, filament with multiple micro-tubes inside each filament, anti-ultraviolet fabrics, moisture-absorbing and moisture-repelling fabrics, and remote infrared filament with a triangular cross-section. Most of these products are patented, and many of them are designed for making apparel for sports and outdoor activities.

Minister Lin stated that the government will strengthen its promotion of cooperative ties between upstream material manufacturers and downstream garment makers. In one successful case he pointed out by way of example, several upstream material manufacturers have begun providing innovative fabrics to one local garment producer that markets its outdoor sportswear under the "Traveler" brand.

Lin noted that the local textile industry is being transformed and upgraded into a high-tech industry which can turn out fabrics equal to those from top foreign manufacturers such as Gore-Tex. As justification for this claim, he wore a suit made of new moisture-repelling material that can breathe and allow sweat to escape through tiny pores. The material is made by Taiwan Taffeta, which is listed on the Taiwan Stock Exchange.

The material is made of filament with multiple micro-tubes that carry moisture away swiftly, keeping the skin of the wearer dry. This makes the material highly suited for use by sportsmen, said ITRI project leader Chen Lien-tai.

The innovative materials on show were initially for export only. However, Chen pointed out, their use will be promoted more aggressively in the future in cooperation with both foreign and domestic textile and garment manufacturers.

In 2004 ITRI will invest NT$60 million (US$1.76 million) in the development of new nylon-based fabrics with a higher value than current products. These new fabrics are expected to keep Taiwanese manufacturers ahead of their competitors in mainland China, which are busily expanding their capacity for the production of polyester fabrics.