Taiwan's machine tool industry enters "New Mediocre" phase after a glorious period due to the slowing growth rate of global consumption and the collapse of manufacturing. In addition to the decrease in demand for machine tools, Taiwan's machine tool industry faces challenges from Japan and Germany in medium-level machine tools and China in low-end products. In order to improve the competitiveness of Taiwan's machine tool industry, we need to analyze the strengths and weaknesses of Taiwan's machine tool industry