In order to realize high speed machining, the special requirements for the transmission and structure of CNC machine tool have to be satisfied. A high speed spindle unit driven by a built-in motor is developed. An oil-water heat exchange system is used for cooling the spindle motor. The spindle is supported by Si4N3 ceramic ball angular contact bearings. An oil-air lubricator is used to lubricate and cool the spindle bearings. Some special structures are taken for balancing the spindle.