Taiwan's machine tool industry is moving into the semiconductor equipment business, a positive shift for a sector looking to escape low-margin manufacturing.

• Nine Taiwanese machine tool and parts makers formed a joint group, "TMBA SMART," to show at SEMICON Taiwan and chase orders for precision parts and equipment used to build chips.
• Global sales of chipmaking equipment are expected to hit $166 billion next year, up more than 20%, driven by AI demand for advanced chips, memory, testing and packaging.
• Chip equipment now demands far tighter precision, better heat stability and tougher reliability, which plays to what Taiwan's machine tool firms already do well.
• The group plans to meet equipment buyers and engineers directly at the show and bring those requirements back to shape future products.

Outlook: The group plans a bigger presence next year, betting AI-driven chip investment keeps pulling Taiwanese toolmakers up the value chain.