Building central Taiwan into a global hub for smart machinery

  • Date: 2016-08-08

I. Background

The intelligent machinery initiative, one of the “five plus two” innovative industries proposed by President Tsai Ing-wen, aims to upgrade Taiwan’s precision machinery into an intelligent machinery industry with an eye to creating jobs, expanding the export of turnkey solutions, and making central Taiwan a leading hub for smart machinery.

The Ministry of Economic Affairs has therefore proposed a Smart Machinery Development Program to infuse a broad range of intelligent elements into the precision machinery industry. The program will consolidate the technological services industry and develop total solution capacities so that manufacturers can provide innovative, customized, and smart products and services under their own brand names. This will not only boost the competitiveness of Taiwan’s intelligent machinery industry, but also provide more user-friendly products and improve the quality of life.


II. Objectives

The government aims to build a new ecosystem for the smart machinery industry by building on Taiwan’s successes in precision machinery and information and communications technologies, and incorporating intelligent technologies into those processes. This will make Taiwan a global research and development and manufacturing base for smart machinery, as well as a total solution provider for end-use applications.

A. Industrialize smart machinery

Step up medium and long-term plans for product innovations and the deployment of homegrown smart machinery technologies. Develop solution-based products, and create an industrial ecosystem for intelligent machinery.

B. Make industries “smarter”

To soften the impact of changes in the working population, the government will build up human capital quickly and help businesses design innovative production process that will significantly raise productivity. Taiwan’s advantages in electronics and the information and communications industries will also be utilized to make supply chains more intelligent and easier to manage.


III. Strategies and measures

To give Taiwan’s machinery and equipment manufacturers the ability to provide total solutions, the program will equip machines with intelligent functions such as malfunction prediction, accuracy compensation and automatic parameter setting. It will also create a system for internet-of-things (IoT) manufacturing services by designing intelligent production lines and connecting with consumers via cloud and internet technologies. These efforts will be implemented through three strategies:

A. Connect local industries

1. Build a smart machinery hub

(1) Combine central and local government resources to build an intelligent machinery industry hub centered in Taichung with links to Changhua, Yunlin and Chiayi counties.
(2) Link with urban planning projects to provide businesses with development space and demonstration zones.
(3) Promote international exhibition venues for smart machinery to expand global markets.

2. Integrate industry, university and research institute capabilities (training resources should be sourced locally, and research and development nationally)

(1) Promote an innovative business model for government-subsidized research institutes to serve the clients of clients.
(2) Develop applications for smart cars and unmanned transport devices.
(3) Strengthen cooperation among industry, academia and research institutes in cultivating professionals.

B. Connect with the future

1. Create advanced technologies, build systematic solutions

(1) Develop factory-to-factory total solutions for aerospace technology, advanced semiconductors, intelligent transportation, green vehicles and energy resources.
(2) Promote human-robot cooperation, and combine machine vision in robots with intelligent machinery applications.
(3) Develop high-end controllers, and raise the penetration rate of Taiwan-made controllers in niche-type smart machines.
(4) Build industrial IoT technologies.
(5) Develop Taiwan’s own smart machinery technologies, components and application services. Conduct field tests to verify operability before exporting systems integration solutions to other countries.

2. Provide test sites

(1) Strengthen interdisciplinary cooperation to develop aerospace machine tools, and integrate different segments of the industry into a cluster.
(2) Develop import substitutes for niche-type semiconductor equipment, smart vehicles and intelligent robots.

C. Connect internationally

1. Enhance cooperation and industrial exchanges on intelligent machinery with Europe, the United States and Japan.

2. Expand overseas markets

(1) Export systems integration solutions and promote Taiwan’s machine tools in Southeast Asian markets.
(2) Strengthen promotion of smart aerospace machinery to overseas markets.


IV. Expected benefits

A. Global hub for intelligent machinery will be established:
An interministerial platform linking central and local government resources will be created to help replace imports with domestic machinery and equipment that incorporate Taiwan’s advanced manufacturing applications.

B. Core and application technologies will be developed:
The government will help the industry develop key parts and components for smart machinery to raise the share of controller exports that are mid-to-high end from 10 to 18 percent in four years, and 30 percent in eight years.

C. Smart machinery will be industrialized, industries made smarter:
High-end sensors and IoT cloud technology will be developed to establish smart system solutions and build six model ecosystems for smart industries in four years.

D. Up-, mid- and downstream processes will be consolidated into a service export model:
Interdisciplinary cooperative alliances will be formed to build four regional service export models in four years and 10 models in eight years.

E. Interdisciplinary talent will be cultivated, export financing environment improved:
An industrial-academic talent assessment center will be set up to train workers for smart industries. Businesses will receive help with export financing and mergers and acquisitions.

F. Growth rate of smart machinery production value will more than double:
The smart machinery industry will expand to achieve a compound annual growth rate of 2 percent by 2019 and 5 percent or more by 2023.