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Taiwan Association of Machinery Industry

The Chairman Mr. Pa-Hsi KO Said, Taiwan Machinery Industry By
Driving Intelligent Manufacturing With Intelligent Machinery

By Fu-An Chuang

Intelligent machinery is an important governance content of the government’s “ 5 + 2 Industry Innovation Plan” ,
which has helped Taiwan machinery industry annual output value to break through NT$ 1 trillion in 2017, and it
will become the third Taiwan industry of NT$ 1 trillion. The Chairman of Taiwan Association of Machinery Industry,
Mr. Pa-Hsi KO said, in the future, Taiwan should continue to drive towards the direction of intelligent machinery
and intelligent manufacturing, and aiming at a steady growth of about 10% per year. We hope to achieve the
vision of a total annual output value of NT$ 2 trillion by 2025. One of the key factors to realize this vision is to
develop the high added value created by intelligent machinery and intelligent manufacturing. Mr. Pa-Hsi KO
pointed out that, the first step to enter Industry 4.0 is to settle the networking of equipment. In 2017, Taiwan
Association of Machinery Industry recommended that the government should assist all of Taiwan small and
medium-sized enterprises to take the first step to move towards intelligent industry. Such a request was accepted
by the government, so that the Intelligent Machinery Box was created in 2018.

Since most of manufacturing factories in Taiwan are small and medium-sized enterprises, Mr. Pa-Hsi KO spoke
out the request in 2019 again, and they could not invest much cost in basic software and hardware development.
Therefore, they need to rely on the government and legal entity research units to help them to develop “Taiwan
Machinery Cloud”, to allow the machinery equipment industry, component industry, and software development
company to work together and jointly build the intelligent machinery software ecosystem. And then “Achievement
of the Taiwan Machinery Cloud Conference “ was held on December 24, 2019, which kicked off the starting
operation of it. Mr. Pa-Hsi KO said that, Taiwan machinery industry has already reached the goal of NT$ 1 trillion
now. But nowadays, under the attack of high-priced machines from Germany, Japan, and Switzerland, and also
low-price competition from Mainland China and South Korea, if it wants to break through double growth of output
value, it is impossible only to rely on increasing sales amount of hardware. It is necessary to increase the added
value with more diversified application services, and then it can look forward output value of NT$ 2 trillion.

At present, most machinery manufacturers required the value services such as various types of omen
diagnostics, process diagnostics monitoring, order or capacity forecasting, process and process optimization,
supply chain management, and industrial group clustering, etc. It needs to be based on a stable and healthy
data collection and cloud computing platform. However, small and medium-sized enterprises could not invest
much in infrastructure development such as smart function modules and public cloud platforms. It urgently needs
the government to help combining the strength of legal persons to build “Taiwan machinery cloud”. Mr. Pa-Hsi
KO emphasized that, after received the proposal of Taiwan Association of Machinery Industry, the government
has planned to invest NT$ 1.6 billion research funds in the next 4 years to develop intelligent machinery cloud-
related plans. From 2020, it is expected to commission legal entities such as Technology Research Institute
(ITRI), the Institute of Resource Planning, the Metal Industry Research and Development Center. In addition to
continuously deepening the smart machinery cloud platform, and at the same time, it needs to establish industrial
application cases such as metal cutting, metal forming, rubber and plastics, electronic processing, woodworking,
and laser processing. In the future, we will continue to invest in deepening AI, 5G and other application service
technologies of smart machinery cloud, in order to assist Taiwan machinery industry to fully upgrade, and to
expand Taiwan machinery industry great again.
Taiwan Association of Machinery Industry (TAMI) Website: http://www.tami.org.tw

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