This paper examines the interplay between sustainability transitions and industrial demands within Taiwanese engineering education. Taiwan, a newly industrialized economy, faces unique challenges in integrating sustainability into its engineering programs while maintaining economic growth. Based on 34 interviews with professors, deans, and university administrators across five prominent Taiwanese universities, this study explores how higher education stakeholders perceive and address these challenges. The findings reveal a strong emphasis on technical proficiency and alignment with industry needs, often at the expense of broader educational goals and sustainability. A significant gap exists between engineering and social sciences, with social sciences often being marginalized despite their critical role in fostering a more holistic educational approach. Despite the socio-economic pressures and the dominant technological focus, some educators are pioneering efforts to incorporate sustainability into the curriculum through course projects and University Social Responsibility (USR) initiatives. The study underscores the need for a paradigm shift towards more holistic and interdisciplinary approaches in engineering education to support sustainability transitions. By highlighting the specific context of Taiwan, this research contributes to a broader understanding of the complexities faced by newly industrialized countries in aligning educational practices with global sustainable development goals.