In the future, Taiwan's industrial competitiveness must rely on innovation and high quality rather than low costs, and to meet this goal, the promotion of industrial upgrading and transformation is necessary, Premier Mao Chi-kuo said in the Cabinet meeting today.
The premier made these remarks after a Ministry of Economic Affairs (MOEA) briefing on the progress made in promoting industrial upgrading and transformation. He noted that the MOEA and other relevant ministries have made such efforts for years and said it is time to focus on specific fields and review the results so that replicable models can be developed for industries' reference.
It is hoped that the industrial upgrading and transformation program can increase the production value of the country's manufacturing sector from NT$13.93 trillion (US$457 billion) in 2013 to NT$19.46 trillion (US$638 billion) in 2020, the MOEA said. Seven industries have been prioritized for upgrading and are to serve as models:
- Casting
- Fasteners (such as screws and nuts)
- Machine tools (controllers)
- Semiconductors (3D integrated circuit manufacturing processes, materials and equipment)
- Traditional cluster industries (socks, towels and shoes)
- High-end petrochemical products
- Smart cities
Specific targets have been outlined for the prioritized industries.
The casting industry is the foundation for Taiwan's mechanical industries, Mao said. However, the average employee in the domestic casting industry is more than 60 years old. Since the industry has long been unable to attract younger generations, it could disappear. To supplement the industry's own efforts to save itself through transformation, the government must help lead it towards innovation, such as by introducing 3D printing techniques, Mao noted. He expressed hope that Taiwan's casting industry can catch up with and even exceed its foreign counterparts, be on the cutting edge, and serve as the best example for industry transformation and upgrading.
Casting is to be transformed from a dangerous, dirty and difficult industry into a clean, career-oriented, competitive and creative industry, the MOEA said. Through facility upgrades and industry-academia collaboration, its production value is projected to grow from the current NT$93.8 billion (US$3.1 billion) to over NT$120 billion (US$3.9 billion) in 2020, while the world ranking for its production volume moves from No. 12 to No. 5.
As for the fastener industry, in 2016 its revenues are expected to increase by at least NT$6 billion (US$197 million) while its production value will rise to NT$150 billion (US$4.9 billion).
Plans are afoot to build a viable smart city industry through the application of fourth-generation mobile broadband Internet technology. In the past, Taiwan focused on developing information and communications technology (ICT) industries that made products like personal computers, laptops and cell phones, the premier pointed out. He believes that if these ICT firms can work together to develop smart city and smart lifestyle industries, it should be possible for them to reconstruct the value chain to find a new development direction. The central government will cooperate with the local governments to ensure this development would be applied in citizens' daily lives. The MOEA has also mapped out plans to build up Taiwan as a demonstration area for smart city industries in order to expand the nation's future export capacity in this field.