Taiwan High-Speed Rail (THSR) has taken delivery of the first of 12 Hitachi N700ST trains, marking the start of a fleet renewal program that has drawn attention for its hefty price tag. The train was handed over at Hitachi's Kasado plant in Yamaguchi Prefecture on July 30, 2026, according to a report from the Chinese outlet Huxiu.
The N700ST is the export version of Japan's N700S Shinkansen, modified for Taiwan. THSR, which has operated since 2007 using Japanese Shinkansen technology on the 348.5-kilometre line between Taipei's Nangang and Kaohsiung's Zuoying stations, ordered the new trains to boost capacity amid rising ridership fueled by Taiwan's semiconductor boom.
Premium pricing under scrutiny
The contract, awarded in May 2023 to a Hitachi-Toshiba consortium after three rounds of bidding, is worth 124 billion yen (about 5.5 billion yuan, or $775 million) for 12 trains (144 cars). That works out to roughly 103 billion yen (about 4.5 billion yuan, or $635 million) per train, or 8.53 billion yen (about 375 million yuan, or $53 million) per car.
By comparison, Japan's JR Central purchased 40 N700S trains between fiscal 2020 and 2022 for about 60 billion yen each—roughly 60% of what Taiwan is paying. Chinese manufacturer CRRC's CR400 trains, which have a higher top speed of 350 km/h versus the N700ST's 300 km/h, cost about 170 million yuan per 8-car set, or about 21 million yuan per car—just 56% of the Taiwan price.
THSR officials reportedly questioned why the export price was so much higher than Japan's domestic price. Japanese executives involved in the deal said they had to communicate repeatedly with THSR and even reported the matter to then-Prime Minister Fumio Kishida to rebuild trust, according to Japanese media cited by Huxiu.
Political dimension and market context
The report suggests Japan's pricing strategy toward Taiwan's Democratic Progressive Party (DPP) administration resembles its arms sales to the island, leveraging political goodwill for economic gain. THSR had hoped to use more locally sourced components but ended up only procuring small items like water heaters and coffee machines.
The deal comes as Europe has overtaken Asia as the world's largest railway equipment market, with a total value of 77.7 billion euros in 2025. China remains the largest single-country market but its share is declining as its high-speed network matures.
Meanwhile, competition is intensifying. Siemens, which lost the Taiwan bid to Hitachi-Toshiba, has been aggressive in emerging Asian markets, signing a strategic agreement with Vietnam's Vingroup in December 2025 to build two test high-speed lines, partly by offering technology transfer for its Velaro Novo trains.
