Taiwan’s Bicycle Industry Tour: Giant, Merida, and World-Class Manufacturing Power

The Birth of a Global Bicycle Kingdom

When people think of Taiwan’s proudest industries, semiconductors and electronics usually come to mind first. But Taiwan’s standing in the global bicycle industry is every bit as significant. In an industry with an annual output value exceeding NT$100 billion, Taiwanese companies not only occupy the core of global high-end bicycle manufacturing, they are also a driving force behind the entire industry’s technological progress.

The story of Taiwan’s bicycle industry is a classic transformation tale — from contract manufacturing to branding, from imitation to innovation.

Two Giants: Giant and Merida

Giant Manufacturing

Founded: 1972
Founder: King Liu
Global Ranking: The world’s largest bicycle manufacturer
Annual Revenue: Approximately NT$80 billion (2023)

Giant’s story began in a small factory in Dajia, Taichung. Founder King Liu originally ran an eel farming business before switching industries after recognizing the potential of bicycles. In its early years, Giant manufactured bikes under contract for the American brand Schwinn, gradually building up its manufacturing capabilities through rigorous quality control and continuous technical improvement.

1981 was Giant’s turning point — when its largest customer, Schwinn, moved its orders to mainland China, Giant decided to launch its own brand, Giant. What seemed like a decision made out of necessity later proved to be the most correct strategic choice the company ever made.

Key milestones for Giant:

• 1986: Developed the world’s first carbon fiber road bike frame, establishing its position as a technology leader
• 1990s: Sponsored professional cycling teams; the Giant TCR series became a fixture on the professional racing circuit
• 2007: At age 73, King Liu completed a 927-kilometer circuit of Taiwan by bicycle, sparking a nationwide cycling movement
• 2008: Launched Liv, a brand dedicated exclusively to women, becoming the world’s first bicycle brand designed specifically for female riders
• 2012: Became the bicycle brand with the highest revenue in the world

Today, Giant has more than 12,000 points of sale worldwide, with a product line spanning road bikes, mountain bikes, city commuter bikes, and e-bikes across every category. Its three brands — Giant, Liv, and Momentum — each occupy a clearly defined market position.

Merida Industry

Founded: 1972
Founder: Ike Tseng
Global Ranking: The world’s second-largest bicycle manufacturer
Annual Revenue: Approximately NT$35 billion (2023)

Founded almost simultaneously with Giant, Merida charted a different course of development. Merida chose to build deeper ties with European brands, particularly with the German market.

What sets Merida apart:

• European Strategy: Deepened its presence in the European market by investing in the German distribution brand Centurion and Specialized (in which it once held shares)
• Mountain Bike Strength: Merida has a particularly strong track record in mountain biking, with the Multivan Merida team repeatedly achieving strong results at the UCI Mountain Bike World Cup
• Technical Innovation: CF4 carbon fiber manufacturing technology and the Flexstay rear chainstay design are among Merida’s proprietary technologies
• Vertical Integration: From raw carbon fiber materials to finished bike assembly, Merida maintains a highly vertically integrated production capability

Merida’s Reacto aero road bike, Scultura lightweight road bike, and One-Sixty full-suspension mountain bike are all benchmark products in their respective categories.

Taiwan’s Complete Bicycle Industry Ecosystem

The strength of Taiwan’s bicycle industry lies not only in the two giants, Giant and Merida, but also in the complete supply chain ecosystem behind them.

Key Component Manufacturers

KMC
The world’s largest bicycle chain manufacturer, with a market share exceeding 50%. No matter what brand of bike you ride, there’s a good chance the chain was made by KMC.

Novatec
Specializing in hubs and wheelsets, Novatec is the unsung hero behind the wheelsets of many international brands.

Wellgo and Xpedo
Taiwan’s pedal manufacturing capability is among the best in the world, with Taiwanese manufacturers present across everything from entry-level to professional-grade pedals.

TranzX
A key supplier of seatposts, stems, handlebars, and other components, with particularly advanced technology in dropper seatposts.

Jagwire
A globally recognized brand of brake and shift cables, headquartered in Taiwan.

The A-Team Alliance

In 2003, at the joint initiative of Giant’s King Liu and Merida’s Ike Tseng, Taiwan’s bicycle industry established the A-Team (Taiwan Bicycle Team Association). This alliance brought together Taiwan’s finest complete-bike and component manufacturers to jointly drive quality improvement and technical innovation.

The founding of the A-Team marked a shift in Taiwan’s bicycle industry from competing on “quantity” to competing on “quality.” Through technical exchange and mutual quality audits among its members, the overall standard of Taiwan’s bicycle industry has improved significantly.

Industry Data at a Glance

Metric	Data
Taiwan bicycle export value (2023)	Approximately NT$70 billion
Global market share in high-end bicycles	Over 50%
Average export unit price	Approximately US$1,200–1,500 per unit
Industry workforce	Approximately 35,000 people
Major export markets	Europe (55%), North America (25%), Asia-Pacific (15%)
E-bikes as a share of exports	Approximately 40% and rising

Challenges Facing the Industry

Competition from Mainland China

Mainland China’s bicycle production volume is dozens of times that of Taiwan, giving it an absolute advantage in the low-price market. But by focusing on high-value-added products and technical differentiation, Taiwanese manufacturers have maintained their lead in the high-end market.

The Shift to E-Bikes

Electric-assist bicycles (e-bikes) are the fastest-growing category in recent years, particularly in the European market. Taiwanese manufacturers are actively investing in e-bike research and production, but face competition from major motor system manufacturers like Bosch and Shimano Steps, as well as increasingly strict EU regulatory requirements for e-bikes.

Supply Chain Restructuring

Global bicycle demand surged during the pandemic, only to be followed by problems of excess inventory. This dramatic swing in supply and demand has forced Taiwanese manufacturers to rethink their supply chain management strategies, including diversifying production bases and building more flexible inventory management systems.

Sustainability Pressure

The recycling of carbon fiber frames, carbon emissions during production, and environmentally friendly packaging materials — these sustainability issues are gradually becoming challenges the industry must confront. Some European markets have already begun requiring carbon footprint reports covering a product’s entire life cycle.

Looking Ahead

The Electrification Trend Is Irreversible

The proportion of e-bikes will continue to rise, and it is projected that by 2028, more than half of the bicycles Taiwan exports will be electric-assist models. This represents a tremendous opportunity, but it also requires substantial technology investment.

Smart and Connected Features

Making bicycles “smart” is the next battleground. Electronic shifting, power meters, smart helmets, connected bike lights — bicycles are transforming from mechanical products into technology products. With strengths in both bicycles and electronics, Taiwan has an opportunity to gain a favorable position in this trend.

New Materials and New Manufacturing Processes

From carbon fiber to graphene, from welding to 3D printing, new materials and manufacturing processes continue to push forward bicycle performance. Taiwanese manufacturers have already built a deep technical foundation in carbon fiber processing, and there is much to look forward to in their future application of new materials.

Conclusion

As a person from Taiwan, every time you get on a bicycle, you can feel proud of this industry. From a small factory in Dajia to a global bicycle kingdom, Taiwan’s bicycle industry has spent half a century writing an admirable industrial legend.

The next time you ride a Giant or a Merida up a mountain, or notice the small KMC logo on your chain, remember: behind it lies the wisdom and sweat of tens of thousands of people in Taiwan. This is not only a testament to Taiwan’s industrial strength, but a concrete expression of Taiwan’s spirit.

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