Taiwan’s Bicycle Industry: How GIANT and MERIDA Conquered the World

Taiwan is one of the most important bicycle manufacturing hubs in the world, and behind this status are two companies that deserve much of the credit: Giant (Giant Manufacturing) and Merida (Merida Industry). The stories of these two companies are not just models of commercial success, but also a microcosm of Taiwan’s manufacturing transformation.

The Origins of Taiwan’s Bicycle Industry

Taiwan’s bicycle manufacturing industry dates back to the 1940s–1950s, initially focusing on imitating Japanese bicycles. In the 1970s, as the oil crisis triggered explosive growth in global bicycle demand, Taiwanese manufacturers began taking on large volumes of OEM (original equipment manufacturing) orders from European and American brands.

At the time, Taiwan, with its low labor costs and relatively mature metalworking technology, became the primary manufacturing base for major Western bicycle brands such as Schwinn (USA) and Raleigh (UK).

Giant: From OEM to Global Leader

Founding History

Giant was founded by Liu Chin-Piao in 1972 in Dajia, Taichung, starting as a pure bicycle OEM factory. In 1977, Giant became the main supplier for Schwinn of the USA, with an annual supply of 700,000 units, accounting for the vast majority of Schwinn’s total sales.

However, this model of heavy reliance on a single customer triggered a crisis in 1981: Schwinn began seeking lower-cost suppliers in China, and Giant’s biggest client started to slip away.

The Key Decision in Brand Transformation

Facing the crisis of shrinking OEM orders, Liu Chin-Piao made one of the most important decisions in Taiwan’s manufacturing history: creating the in-house brand “Giant” and selling directly in the European market.

In 1986, Giant established its first European subsidiary in the Netherlands. At the time, it was extremely rare for Taiwanese manufacturers to build their own brands, and the move was seen by peers as bold or even reckless.

Technological Innovation

Giant’s brand building was centered on technological innovation from the very beginning:

• 1987: Launched the first aluminum alloy frame, years ahead of the industry mainstream at the time
• 1992: The revolutionary TCR (Total Compact Road) sloping top-tube frame design, widely imitated by other manufacturers
• 2002: The carbon fiber MCR (Monocoque Construction Revolution) one-piece molded frame
• Recent years: Pioneering research and development in electric-assist bicycles (E-bikes)

Global Scale

Today, Giant is the world’s largest bicycle manufacturer:

• Annual production exceeds 6 million units
• Sales outlets in more than 50 countries worldwide
• Its women’s brand Liv is the world’s largest bicycle brand dedicated exclusively to women
• Sponsors the UCI WorldTour top-tier team Team Sunweb (now renamed DSM)

Merida: The Pursuer of a Premium Route

Founding and Growth

Merida was founded by Tseng Sung-Fu in 1972 (the same year as Giant), also starting with OEM manufacturing. In its early days, Merida produced for European brands such as Germany’s Centurion, and later became an OEM partner for several top global brands.

Strategic Alliance: The Story with Specialized

Merida has had a deep cooperative relationship spanning decades with Specialized, the most famous road bike brand in the USA. Many of Specialized’s high-end models are manufactured at Merida’s factories in Taiwan.

Even more strategically significant, Merida holds a 49% stake in Specialized, forming one of the most important cross-border strategic alliances in the Taiwan-US bicycle industry. This arrangement allows Merida to share in the high margins of the Specialized brand while giving Specialized a stable, high-quality supply chain.

Technical Highlights

• CF (Carbon Fiber) Technology: Merida is renowned for its carbon fiber frame development; the Scultura series is one of the lightest production road bikes in Tour de France history
• Wind Tunnel Testing: Built its own wind tunnel at the Taichung factory to ensure precise aerodynamic design
• Pro Team Sponsorship: Long-time sponsor of Team Bahrain Victorious (formerly Bahrain-Merida)

Taiwan’s Supply Chain: The Hidden World Champions

Beyond Giant and Merida, Taiwan is home to many companies that hold key positions in the global bicycle market:

Company	Main Products	Market Position
KMC	Bicycle chains	Global market share exceeding 50%
Tektro	Braking systems	One of the world’s top three brake manufacturers
SR Suntour	Suspension forks	Key supplier in the mountain bike market
Novatec	Wheelsets (hubs)	Important manufacturer of high-end wheelsets
Kenda	Tires	One of the world’s top three bicycle tire manufacturers
FSA	Cranksets, handlebars	Key manufacturer of high-end components

The Current State and Challenges of Taiwan’s Bicycle Industry

The Golden Decade and the Pandemic Dividend

During the COVID-19 pandemic in 2020–2021, global bicycle demand grew explosively, with Taiwanese manufacturers’ order books full through 2022, and Giant and Merida stock prices surging to record highs.

Challenges Ahead

• Chinese Competition: The low-to-mid price market is now dominated by Chinese manufacturers
• E-bike Transition: Electric-assist bicycles are rewriting the industry’s rules, requiring collaboration with electronics and battery manufacturers
• Carbon Neutrality Pressure: European customers’ requirements for supply chain carbon emissions are becoming increasingly stringent
• Labor Shortage: Taiwan’s manufacturing sector faces the long-term challenge of a manpower shortage

Taiwan’s Pride

When you ride a Giant, a Merida, or even a Trek or Specialized, what you are riding was very likely built in a precision factory in Taichung or Changhua. The achievements of Taiwan’s bicycle industry are the crystallization of decades of engineering accumulation, quality commitment, and brand courage.

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This story is still continuing. In the new era of E-bikes and smart bicycles, Taiwanese manufacturers are thinking about how to lead the world once again.

Related Reading

• The Rise of Taiwan’s Homegrown Bicycle Brands: Giant and Merida’s Path to the World
• A History of Taiwan’s Bicycle Industry: How Giant and Merida Became Global Brands
• A Tour of Taiwan’s Bicycle Industry: Giant, Merida, and World-Class Manufacturing Strength
• The Legend of Taiwan’s Bicycle Manufacturing: The World-Class Factories of Giant and Merida