Is there ANY places for arts and craft? I mean is Taiwanese so dim witted that no one is interested in any arts and craft???
Seems as if most Taiwanese only did art cause the school said to do it…
What kind of arts and crafts are you looking for…???
If you are in Taipei there are shedloads of art shops on Heping E Road near the Shi-Da night market area. I don’t know the names of any, but I have been to a few with Ladyfunk, a Taiwanese girl who enjoys making arts and crafts 
you know like blank T shirts, balsa wood, things like that…
If your craft interests include beads, yarn, buttons, hair frillies, sew-ons, glass jars, car mirror ornament-making or something along those lines, there are several shops clustered together on Yen Ping North Road, Section One. The largest place is called Bear Mama and closes at nine on weekdays (unsure about weekends). The yarn is overpriced, but they have a lot of interesting stuff, including a large selection of coloured polyester cord, probably for making said ornaments. The staff are not very friendly, but they do leave you alone and let you do your own thing. Just taxi over to Section One and wander about until you see a large, brightly lit shop with tonnes of yarn. You can’t miss it.
I’d like to bump this question to see if there are any new answers, because it’s a good one. And if there are any entrepreneurs out there listening, I see a niche here waiting to be filled. General arts and crafts shop in Neihu, anyone?
I found one the other day, I live just off NeiHu Road Sec. 2 and there’s a general arts and crafts store just around the corner from the Wecare on Chenggong Road, it has a table outside with notebooks and colouring pens on it. They sell loads of pens etc but downstairs is a little goldmine of paper, card, stickies; everything you can think of you might need to do projects. There’s also the big department store on Chenggong Road next to MacDonalds that has everything you can think of and they do arts and crafts stuff as well as sewing, embroidery and tapestry materials. Its a great store although can run a little pricey.
I heard there’s one on the 6th floor of the Breeze shopping center on Fuxing N. Rd., including dyes for tie dye.
The Tianshui St. stores have dyes too. (EDIT – those didn’t work well for tie dye or batik, but are for vat dying of solid colors instead. If doing tie dye or batik, buy Procion MX dyes from Dick Blick, Dharma trading, etc. instead, and be sure to buy the sodium carbonate as instructed.)
Blank tees are available as men’s underwear at Costco and dept. stores (although if doing tie dye or batik with colors extending to the stitched seam areas, the stitching may remain white, as the thread is usually not cotton; blank cotton clothing with cotton stitching, to avoid this problem, is available online from Dharma Trading, along with a wide variety of dyeing supplies).
For balsa, try lumber yards. 
Then there’s mail order from places like Dick Blick.