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With the reputation of ""Rolls-Royce of shock absorbers"", Fox Factory designs, manufactures and sells its high-performance products, including snowmobiles, mountain bikes, motorcycles, trucks and related suspension products, as well as bicycle components. The company has been investing in Taiwan for more than 10 years.
Taiwan, known as the ""Bicycle Kingdom"", possesses the only high-end bike cluster in the world in the areas of Taichung, Changhua and Nantou. Under this circumstances, Fox Taiwan plays a critical role especially in bike-related components within Fox Factory group. In 2017, the production lines of all series of bicycle parts were transferred from the United States to Taiwan factory. Due to Covid-19 pandemic, Fox Factory suffered from material shortages derived from disconnected global supply chain, but also experienced the strong market demand, the company actively expands its operation in Taiwan through investing in R&D and recruiting talents to meet the customers’ needs.
Local suppliers are the staunch backing of Fox Taiwan. Thriving bicycle industry and cluster consist of companies and suppliers that support one another. When facing a high-mix low-volume (HMLV) manufacturing model and market ecology, Fox’s suppliers can respond rapidly to the design and production adjustment accordingly. Furthermore, Fox Taiwan has more efficient material management, since most of the raw materials are from Asian countries. As a result, Taiwan branch gains more resilience of supply chain. Meanwhile, Fox Taiwan is located in Taichung, 80% of bicycle-related companies- like Giant and Merida, are situated within 70 kilometers and 1-hour driving distance. The firm not only serves their main customers nearby, but also provides worldwide service as the international brand.
Within the unique bicycle cluster, companies may compete but learn from each other to promote the vigorous development of the industry.
The logo of FOX on bicycle forks means high quality products, the concept is same as ""Intel Inside"". To maintain quality, Fox not only pays attention to design and production, but also relies on its talent. Therefore, Fox Factory values talent development and is committed to creating a happy workplace, such as a diversified, inclusive and equal environment, to attract and secure talents. Those efforts are seen and recognized, Fox Taiwan was listed on the 2022 Excellent Merchant Award by ROCCOC (The General Chamber of Commerce of the Republic of China) and won both the Five Star Award in Best Place to Work as well as the Creative Workplace Award by Taichung City Government.
The lifestyle changes derived from the epidemic have driven the increase in demand for outdoor sports equipment in Europe and the United States. Furthermore, the issues of net zero carbon emissions and ESG have attracted global attention. Those driving forces have become catalysts for the rapid increase in the penetration rate of the bicycle market and the replacement rate of high-end bicycles. In response to this international trend, Fox Taiwan took two measures to support capacity expansion. One is to actively introduce automated production lines, digitalization and data analysis system, such as using robotic arms and other automated equipment to continuously conduct work optimization; the other is to recruit talents and embrace diverse cultures. In recent years, number of employees has grown substantially, from about 200 in 2015 to more than 1,000 in 2022.
In the future, Fox Taiwan will integrate Taiwan’s cutting-edge ICT and Precision Machinery industries, actively introduce automated production lines and continually practice ESG policy to shape Fox Taiwan as the core of smart manufacturing base in the group.
Source: Department of Investment Promotion, MOEA
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