Taiwan’s fastener industry faces new challenges as Germany’s automotive sector struggles. German automotive supplier Aumovio announced plans to cut up to 4,000 jobs globally by the end of 2026, impacting markets from Europe to Mexico. This contraction directly affects Taiwanese exporters, who rank Germany as their second-largest destination, with automotive fasteners playing a major role.

Besides the auto industry, Germany’s construction and equipment investment dropped to decade-low levels by late 2025. These declines reduce demand for Taiwanese building and wood screws.

Although the German government implements tax reforms to stimulate economic growth, high costs and labor shortages continue. Therefore, Taiwanese manufacturers worry that the expected export recovery for the second half of 2026 may stall due to Germany's weakening industrial confidence.