The global aerospace sector's rebound from the pandemic has fueled strong demand for aircraft and related components, leading Taiwanese suppliers to report order volumes far exceeding their production capacities. While these companies are not short of contracts, limitations in factory space and time-consuming certification processes restrain output growth. To meet customer needs and diversify, Taiwanese firms are expanding from small parts manufacturing toward larger assemblies like aircraft fuselages.
Aircraft manufacturers Boeing and Airbus, representing the bulk of global production, are contending with backlogs projected to take over a decade to fulfill. Boeing, for example, had delivered 328 planes by August 2025 but maintained a backlog close to 6,000 aircraft, with plans to increase deliveries to 610 planes in 2025. These figures underline persistent supply chain bottlenecks resulting from supplier exits during the pandemic downturn.
Taiwanese firms ramp up production
Among the key Taiwanese suppliers, National Aerospace Fasteners Corporation (Nafco) reported revenue of NT$2.57 billion (US$85 million) for the first eight months of 2025, marking a 12.47% year-over-year rise. The company credits strong confidence in demand growth over the next two years to anticipated global air traffic expansion. Following a fire-related disruption at competitor SPS Technologies, Nafco has absorbed redirected orders, emphasizing its crucial role in the supply network. Its facilities in Kunshan and Taiwan are running near full capacity, prompting internal layout enhancements and plans for facility expansion in Malaysia. After the 2023 decision to build a Malaysian plant, Nafco aims to start trial production in 2025 with mass production slated for 2026.
In June 2025, Nafco's subsidiary MY NAFCO PRECISION SDN. BHD acquired land and a near-completed factory in Seremban, Negeri Sembilan, investing MYR19.2 million (US$4.57 million). This move intends to rapidly boost production capacity and meet urgent customer demands. Nafco supplies fasteners to the world's four largest aircraft engine manufacturers, with engine-related products representing 90% of its aerospace revenue. The company is expanding into fuselage fasteners, representing a move toward larger and more complex assemblies that, while requiring extensive safety certifications, promise more stable, long-term contracts upon integration.
JPP expands through strategic acquisition
Similarly, JPP Holding Company is scaling its capacity and product range. Its European expansion culminated in the full acquisition of French firm Segnere, a tier-one supplier of sheet metal parts and structural assemblies for Dassault Aviation and Airbus. This acquisition allows JPP to extend beyond internal components into fuselage manufacturing.
Prior to acquiring Segnere, JPP Holding's European subsidiaries—ADB, LUTEC, and SPEM—specialized respectively in milling, turning, and surface treatment, establishing a broad base in aerospace machining. Integrating Segnere completes a vertically integrated supply chain capable of delivering complex fuselage parts. The acquisition was facilitated through introductions by Dassault and Airbus, indicating secured future order pipelines.
In August 2025, JPP posted consolidated revenue of NT$320 million, a 53.58% increase year-over-year, setting a monthly record. The company continues to supply structural parts for Airbus models, including the A320 and A350. At the 2025 Paris Air Show, JPP Holding secured development projects for new components on the A350, expecting to submit samples in 2026 and begin revenue generation by 2027. This progression reflects Taiwanese suppliers' strategic shift from small components toward larger, higher-value aerospace assemblies amid sustained global industry growth.
Article translated by Jingyue Hsiao and edited by Jerry Chen
