Taiwan plays a key role for supplying functional fabric made up of synthetic fibers like polyester and nylon. Taiwan in progressing from cotton yarn to synthetic yarn has developed knitting, dyeing and processing techniques, though the country is not very strong in spinning.

Functional fabric is used by sportswear and outdoor wear brands. Every major brand in the world depends on Taiwan for leadership in textile development, innovation and quality. As one of the leaders in chemical fiber, Taiwan has developed various functional and eco-friendly textiles for the global market, thereby being recognized as an international sourcing hub. After more than 60 years of development Taiwan's textile industry has evolved from a mass production textile supplier to a textile innovator equipped with a comprehensive yet integrated value chain.

Around 70 per cent of Taiwan’s revenue comes from China, Vietnam, India, Indonesia, Thailand, Bangladesh, Pakistan and Turkey. The Taiwanese textile industry has developed environmentally-friendly concepts and done recycled polymer and polymer blends. From yarns for apparel to industrial and sport accessories, recycled yarns are growing in importance and are a core part of Taiwan’s textile industry. Mixtures of new technologies and fashion allow new design elements that were hard to imagine in the past.