Due to relevant government policies, the man-made fiber industry in Taiwan experienced rapid growth after the retrocession. By 1974, Taiwan had become the world’s fourth largest exporter of man-made fibers. However, the country still relied heavily on imports of spinning machines and spinning oil at the time.

In response, in 1975, ITRI commenced on researching new man-made fiber spinning techniques and constructed spinning machine plants. With a collaborative effort from various fiber factories, ITRI also successfully developed domestically produced spinning oils. These endeavors not only boosted the quality of man-made fibers but also enabled Taiwan to produce its own spinning oil. In 1993, ITRI made another significant contribution by developing Taiwan’s first fully automatic spinning nozzle inspection and cleaning system and the high-speed weaving technology. These innovations were later transferred to major fiber companies such as Shinkong Textile Co., Ltd., Far Eastern Textile Ltd., Chung Shing Textile Co., Ltd., and Tun Yun Textile Co., Ltd., leading to a remarkable improvement of their textile production technologies.

In the 1990s, many industries in Taiwan relocated to abroad, and in 2005, the World Trade Organization (WTO) abolished Taiwan’s textile quotas, which set back the country’s textile industry on the global market. To address this issue, in 2006, ITRI called for textile manufacturers in southern Taiwan to establish the Southern Taiwan Textile Research Alliance. This alliance brought together resources from industry, academia, government organizations to drive industrial transformations and development of new textile products, such as nano-antibacterial yarns and environmentally friendly yarns. In 2008, ITRI utilized various functional fiber technologies to assist the hosiery industry cluster in Shetou, Changhua in rolling out specialized high-value functional sock products. By integrating hosiery brands, dyeing and finishing plants, special chemical companies, and distribution channels, ITRI established a chain system that integrated R&D, verification, production, and sales was formed.

Since the 2010s, Taiwan has been facing a declining birth rate and an aging population, while the textile industry has been striving to achieve product variety and shorter delivery periods. To digitize the textile industry, ITRI introduced several smart manufacturing technologies, including the Internet of Things, production-related big data, and automated guided vehicle (AGV) to a number of textile giants such as Tuntex Incorporation. In 2019, ITRI assisted Everest Textile Co., Ltd. in establishing the world’s first unmanned automated assembly line for crew-necks. This assembly line boasted a sampling time of just 3 days and full integration of machine sewing processes, reducing manpower by more than 70%.