In the face of rapid changes in the domestic and international political and economic situations in recent years, which have led to obvious changes in the global supply chain, the machinery industry, which is honored as the "mother of industry," is where the national strength is demonstrated. Among them, transmission components are not only the most widely used and often bear the brunt of fluctuations in the industry, but are also installed at the front end of machines, spindles, and other workpieces, and are regarded as a powerful tool for collecting critical data in the AIoT era.

Observing the current situation of the global supply chain, it has shifted from global division of labor and Asian manufacturing to the development of more resilient short-chain and regional manufacturing, and the use of intelligent equipment to improve the energy efficiency of production has become an important niche for the machinery industry. Among them, linear transmission components are defined as components that are made of iron or aluminum and integrate slides, screws, belts, gears, linear motors, etc., to carry out linear motion.

However, China's economic recovery is not as expected, according to ITRI statistics, the annual output of single-axis sliding table in 2023 is about 850,000 units, which is lower than the peak of 1 million (1.09 million units) in 2022, and the relevant manufacturers' market share is in the following order: Japanese manufacturers (51.6%), Taiwanese manufacturers 21.9%, and European and American manufacturers 16.7%.

With the recent depreciation of the Japanese yen led to the intensification of the price war in the transmission components market, coupled with the downturn in the machine tool industry this year, the original offer than the Taiwan factory expensive 1 ~ 2% of the Japanese manufacturers in order to compete for orders, and even Mainland China-made transmission components to Taiwan's initiative to a number of machine tool factories quoted prices, and Taiwan manufacturers have almost no price difference between the products; in the context of the situation of the involution of the mainland transmission components to reduce the price of the greater Taiwan manufacturers into a small threat to force some manufacturers to make concessions. Threat, forcing some manufacturers to make profits to rush orders, price reductions even up to 30%.

In response to the mainland and Japanese manufacturers to cut prices to grab a single trend into the Red Sea, even Taiwan's linear rail / ball screw manufacturers have to face the battle head-on, almost the same rate of price cuts with competitors, but also admitted that it will inevitably affect the gross profit. Fortunately, as the semiconductor industry is slowly recovering, the de-stocking is also gradually coming to an end, coupled with signs of warming demand in the mainland market, the 2024 revenues are expected to be better than the 2023 and increase capital expenditures.