Abstract Taiwan is the 5th biggest export country of Plastics Machines, 4th one on export globally in 2005. With total employees around 8000 in 400 plants, Taiwan Plastics Machinery has built up their market position of comparable function in reasonable price level. With impact from end users¡¦ moving out of Taiwan, as well as China¡¦s macro-control on over-developed economic growth, the production volume of the whole industry is still on the growing trend. To be close to customers, following customers movement seems to be the direction for machine makers as well. However, for those small scale companies, to move out from home country is difficult due to lack of resources. The risk of investment in other region, e.g. China, is contrarily high. Export business is therefore the major factor for further business growth. And the results reveal that Taiwan Plastics Machine Makers has grown even under the weak situation. How could they make it? What is their core competence to keep the records? This study is to analyze the competence of the industry and furthermore to explore the relativity between competence and export growth. The study reveals that Taiwan Plastics Machinery export growth results mainly from the market demand. The competence is rather weak in consideration of the factors of production and competitiveness, especially from Mainland China and Korea. Therefore the growth on export volume of Taiwan Plastics Machinery has very limited relevant to its competence. To upgrade machinery¡¦s from the low price market, it is strongly recommended that improving on technology competence and innovation should be taken into strategic actions for future development.