The world is gaining the opportunity to harness Artificial Intelligence (AI), conquer technological advancements, and pave the way for the future of manufacturing. Taiwan strives to become an ‘AI Island,’ leveraging its innovative landscape to drive economic growth and solidify its position as a leader in this new era.
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The key advantages of AI and Technology Application in Taiwan
Given Taiwan’s current landscape and strong foundation, applying AI and technology is essential for driving development and breakthroughs. Taiwan now possesses all the key elements for successful implementation
Modern technological infrastructure
Taiwan is one of the world’s leading producers of information and communications technology products. According to The Economist, Taiwan produces over 90% of the most advanced semiconductors for the world’s most cutting-edge AI applications and research. This made Taiwan the backbone of the global AI infrastructure. In fact, for 2024, according to the Ministry of Economic Affairs (MOEA), Taiwanese manufacturers supply over 90% of AI servers worldwide, with every significant American brand relying on Taiwanese sources for their AI server needs. (The Diplomat)
Synergistic partnerships among Government, Industry, and Research
Collaboration between the Taiwanese government, industry, and research institutions has led to the formation of the “AI on Chip Taiwan Alliance” (AITA), under the guidance of the Ministry of Economic Affairs and the Office of Science and Technology of the Executive Yuan. Officially launched on July 2, 2019, AITA unites over 50 key players from the semiconductor and ICT sectors, both domestic and international, alongside leading research bodies like national universities and the Industrial Technology Research Institute. The alliance aims to create a robust AI ecosystem by developing critical technologies, accelerating product R&D, and swiftly securing a competitive edge in the AI chip market. (Taiwan International Patent & Law Office)
Investment advantage
With all its background, particularly in technology and AI, Taiwan continues to be an attractive designation for foreign investors. In 2024, FDI in Taiwan increased by $4.2 billion USD by June, compared to $1.4 billion USD in the previous quarter, showcasing the country’s expanding appeal to global investors (Ceic Data). This growth is driven by Taiwan’s strategic initiatives to transition from a “silicon island” — a significant player in the semiconductor industry — into an “AI island.”
AI Application in action – The great benefit of AI In Taiwan Manufacturing
What can AI applications do, specifically in Taiwan manufacturing? Here are some key points.
Product life cycle management
Product life cycle management (PLM) plays a critical role in intelligent manufacturing. PLM provides a structured framework to oversee a product’s journey from conception to disposal. The integration of PLM with AI and automation yields significant benefits, such as:
- Automatic Design Simulation: AI aids in the automatic simulation and refinement of product designs.
- Issue Detection and Design Enhancement: AI can identify potential issues, suggest design improvements, and anticipate maintenance needs.
- Efficiency Gains: These capabilities expedite product development, reduce costs, and enhance overall product quality
Improving Forecasting
Traditional inventory forecasting methods are often resource-intensive and inflexible. In contrast, machine learning (ML)-driven through AI automated forecasting offers:
- Dynamic Algorithms: These algorithms adapt to market changes, historical data, and industry trends, improving forecast accuracy.
- Enhanced Predictability: By analyzing extensive historical data from various sources, ML forecasts optimize procurement and production levels, ultimately improving order fulfillment rates
Leveraging Predictive Maintenance
Predictive maintenance helps manufacturers anticipate equipment failures, minimizing costly downtime. Key elements include:
- Data Collection: Effective predictive maintenance relies on gathering data from machinery to monitor performance and detect irregularities.
- AI Analysis: AI algorithms are employed to analyze collected data. Manufacturers can identify patterns and anomalies that predict equipment failures, allowing for proactive maintenance scheduling
Benefit when Application of AI in Manufacturing
- Efficiency and Optimization: AI enhances operational efficiency by optimizing processes and leveraging real-time data.
- Quality Improvement: Integrating AI allows for real-time quality control, significantly elevating product standards.
- Customization and Adaptability: AI enables quick adaptation to market demands, enhancing the production of customized products.
- Labor Shortages and Cost Reduction: In response to labor shortages, AI and automation help fill workforce gaps, streamline operations, and reduce costs by minimizing reliance on manual labor.
- Global Competitiveness: Taiwan is advancing in AI to boost its global market share. Initiatives like the “Integrate to Innovate: Smart Machinery Application Forum” demonstrate Taiwan’s commitment to AI integration in manufacturing, enhancing its global competitiveness (Cutting Tool Engineering).
Successful case of AI Application in Taiwan Manufacturing
The manufacturing sector in Taiwan has been a trailblazer in adopting AI, setting an impressive benchmark globally. According to the “1st State of AI in Manufacturing in Taiwan Report” by Profet AI, 76.2% of Taiwanese manufacturers implemented at least one AI application in the past year, surpassing the global average of 68%. This highlights Taiwan’s leadership in intelligent manufacturing and AI innovation.
Techman Robot, a leader in Taiwan’s collaborative robot industry, specializes in cobots with advanced AI and machine vision. Their AI-powered technology enables precise and efficient quality inspections, significantly boosting productivity while maintaining high-quality standards. This innovative approach positions Techman at the forefront of Taiwan’s AI revolution, helping manufacturers stay competitive in a demanding market (Direct Industry).
Beyond robotics, AI is also transforming other critical processes in manufacturing, such as data management. One remarkable application is intelligent document processing (IDP). IDP utilizes AI to extract data from semi-structured and unstructured documents and convert it into structured formats. In Taiwan’s fast-paced, data-driven manufacturing sector, IDP automates complex document processing, reducing errors, boosting productivity, and enabling real-time decision-making. With big data advancing rapidly, businesses are encouraged to adopt AI and IDP solutions.
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Conclusion
In the context of modernization and digitalization, AI has become a critical factor for the sustainable growth of Taiwan’s manufacturing sector. Businesses must seize this opportunity to optimize processes and enhance competitiveness.
akaBot proudly offers an end-to-end automation solution that integrates RPA with AI and IDP, providing companies with powerful tools to enhance operational efficiency. With akaBot, businesses can drive growth and innovation in the rapidly evolving manufacturing landscape.
akaBot (FPT) is the operation optimization solution for enterprises based on the RPA (Robotic Process Automation) platform combined with Artificial Intelligence, Process Mining, OCR, Intelligent Document Processing, Machine Learning, Conversational AI, etc. Serving clients in 21+ countries, across 08 domains such as Banking & Finances, Retail, IT Services, Manufacturing, and Logistics…, akaBot is featured in “Voice of the Customer” for Robotics Process Automation” by Gartner Peer Insights, G2, and ranked as Top 6 Global RPA Platform by Software Reviews. akaBot also won the prestigious Stevie Award, The Asian Banker Award 2021, Everest Group’s RPA Products PEAK Matrix® 2023, etc.
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