2025-07-25
In the global wake of rapid advances in biopharmaceutical technology and revamp of the supply chain, the collaborative model of CDMO (Contract Development and Manufacturing Organization) has assumed a key industry role in powering new drug development and advanced manufacturing applications. Faced with the ripple effects of the US-China trade conflicts, geopolitical risks, and policies such as the US Biosecure Act, multinational pharmaceutical companies are seeking emerging manufacturing bases outside of China. Due to its high-quality manufacturing capabilities, innovative automation technology, and robust regulatory framework, Taiwan has gradually emerged as an effective de-risking option in the global CDMO landscape.
According to Fortune Business Insights, the CDMO market is projected to grow from $255.01 billion in 2025 to $465.24 billion by 2032, with a compound annual growth rate (CAGR) of 9.0%. Among them, the growth in the fields of Cell and Gene Therapy (CGT) and Antibody-Drug Conjugates (ADCs) enjoys substantial double-digit growth, signaling a strong global demand for high-end CDMO services.
In recent years, as CDMO operations have gradually expanded from traditional small-molecule pharmaceutical OEMs to fields with high-tech barriers (i.e., biologics, immunotherapy, and gene editing), the industry is rapidly transitioning towards all-encompassing research and development platforms. Responding to regulatory pressure and geopolitical risks in particular, large US and European pharmaceutical companies are choosing to secure "Dual-Bases" when moving clinical trial production into the Asian market. As CDMO giants such as Samsung BioLogics, Syngene, and Fujifilm Diosynth continue to expand overseas production, we see a clear shift of global production to the Asia-Pacific. Leading bioprocess drug-analysis and testing-equipment manufacturers – Thermo Fisher Scientific, Merck, and Agilent Technologies – have vertically integrated into the CDMO market, accelerating supply chain integration. Leveraging its advanced manufacturing capabilities, skilled workforce, and supportive regulatory framework, Taiwan has become a focal point for international pharmaceutical companies commissioning development programs.
The recent shifts in the international political and economic landscape have opened up an unprecedented window of opportunity for Taiwan’s CDMOs to capture transferred orders. In January 2025, the United States issued an executive order to protect biological data and advanced the BIOSECURE Act through Congress – explicitly barring federal funds from biotech service providers affiliated with Chinese military intelligence. The move has prompted multinational pharmaceutical companies to accelerate their "de-Sinicization" and "friend-shoring" manueveurs in favor of more compliant and reliable alternative production sites. At the 2025 CDMO Innovation Summit held in Taipei in April, senior executives from international pharma and biotech investors – including Johnson & Johnson and Flagship Pioneering – noted that Taiwan’s adoption of PIC/S GMP – now matches South Korea on cost and surpases China in credibility – positioning Taiwan as the ideal Asia-Pacific manufacturing node for high-end CGT and ADCs with double-digit growth potentials.
As Taiwan's CDMO industry gears towards value optimization and intelligent development, it has demonstrated the technical capabilities necessary to integrate fully with the global supply chain. In March 2025, Bora Pharmaceuticals announced the integration of its Minnesota and Maryland plants with new sterile-injectable production lines. Through the dual-base "R&D in Taiwan, manufacturing in North America" model, it has secured top ten, high margin orders across Europe, the United States, and Japan—landing OEM contracts with GSK, Eisai, and Kyowa Kirin. Eirgenix, Inc. has established Asia's largest mammalian-cell production base in Hsinchu Biomedical Science Park, focusing on ADCs and monoclonal-antibody (mAb) formulation, earning PMDA certification and signing CDMO contracts in the U.S., Europe, and Japan. Mycenax Biotech Inc. continues to deepen its microbial-fermentation and viral-vector processes to create a one-stop new-drug clinical-trial production platform. In addition, Albatross Bio-Manufacturing has introduced AI, augmented reality (AR), and automated manufacturing systems in the Chiayi Science Park – an epitome of smart manufacturing in cell processing.
Taiwan's CDMOs benefit from four competitive advantages: (1) complete industrial clusters: a fully integrated supply chain from active pharmaceutical ingredients, small- and large-molecule synthesis, sterile filling, and medical-device manufacturing; (2) high-quality manufacturing: since adopting PIC/S GMP, the number of certified pharmaceutical plants has grown steadily, yielding systems whose output and quality rival those of Europe and the United States; (3) smart manufacturing: for example, Albatross Bio-Manufacturing has deployed automated equipment integrated with AI decision-making and AR remote-surveillance systems to create an agile, efficient cell-processing line; and (4) supportive policies and talent incentives: the government offers generous R&D tax credits and perks for international researchers, in attracting global talent to establish hubs in Taiwan.
To strengthen Taiwan's role in the global CDMO supply chain, large-scale biotech manufacturing clusters have been established in the Southern Taiwan Science Park, Hsinchu Biomedical Science Park, and Taiwan Startup Terrace, offering a comprehensive range of services – from cell culture and viral-vectors production to sterile filling and pilot-scale mass production. With ample technical support from the Industrial Technology Research Institute (ITRI) and National Health Research Institutes (NHRI), Taiwan has built a seamless value chain spanning early stage R&D, Good Laboratory Practice (GLP) testing, and GMP compliant clinical manufacturing. This integrated ecosystem accelerates product verification and clinical translational medicine through on-site support and cross-domain collaboration. As a result, Taiwan's CDMO sector is moving toward value optimization and deepening collaboration, reinforcing its ability to deliver fully integrated solutions to the global pharmaceutical industry.
Taiwan's CDMO industry continues to strengthen, transitioning from mass-manufacturing to advanced technology platforms and smart-manufacturing integration, and has become a cornerstone of the global biopharmaceutical value chain. With its dense industrial clusters, strong manufacturing capabilities, and stable R&D infrastructure, Taiwan has established a strong foothold amid global supply chain restructuring. Supported by targeted government policies and smart manufacturing initiatives, Taiwan is poised to set the Asia Pacific benchmark for pharmaceutical development and manufacturing—attracting international investment and expanding its industry influence.
Source： Industrial Technology Research Institute (ITRI) Industry Service Center Research Team
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