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TAIWAN SMART MANUFACTURING Taiwan: Best Partner of Manufacturing

YOUR INTELLIGENT PARTNER 4

Contents

Greetings ͻŝƌĞĐƚŽƌ'ĞŶĞƌĂů:ĞŶͲEŝzĂŶŐ͕ƵƌĞĂƵŽĨ&ŽƌĞŝŐŶdƌĂĚĞ͕DŝŶŝƐƚƌLJŽĨĐŽŶŽŵŝĐ ĨĨĂŝƌƐ͘ ͻdĂŝǁĂŶdžƚĞƌŶĂůdƌĂĚĞĞǀĞůŽƉŵĞŶƚŽƵŶĐŝůΘŽƌƉŽƌĂƚĞ^LJŶĞƌŐLJĞǀĞůŽƉŵĞŶƚ ĞŶƚĞƌ

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Point of View ͻdD/ŚĂŝƌŵĂŶ͗'ŽǀĞƌŶŵĞŶƚ͕/ŶĚƵƐƚƌLJĂŶĚĐĂĚĞŵŝĂ͛Ɛ:ŽŝŶƚůƵĞƉƌŝŶƚĨŽƌ /ŶĚƵƐƚƌLJϰ͘ϬŝŶdĂŝǁĂŶ ͻdDŚĂŝƌŵĂŶ͗/ŶƚĞůůŝŐĞŶƚDĂĐŚŝŶĞƌLJ^ŽůǀĞƐWƌŽďůĞŵƐĨŽƌDĂŶLJ/ŶĚƵƐƚƌŝĞƐ

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Brief Intro about Taiwan ͻdĂŝǁĂŶ͕ĂdƌĞĂƐƵƌLJŽĨŽůŽƌĨƵůƵůƚƵƌĞƐ

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Cover Story ͻdŚĞtŽƌůĚ͛ƐKŶůLJDĂĐŚŝŶĞdŽŽů/ŶĚƵƐƚƌLJůƵƐƚĞƌĞůŝǀĞƌƐŽŶĂ^ƚƵŶŶŝŶŐ^ĐĂůĞ ͻ&ŽƌŵŝĚĂďůĞ/dĂŶĚKdĂƉĂďŝůŝƚŝĞƐ'ŝǀĞdĂŝǁĂŶĂŶĚŐĞŝŶƚŚĞ/ŶĚƵƐƚƌLJϰ͘ϬƌĂ ͻdĂŝǁĂŶ͛ƐϱнϮ/ŶĚƵƐƚƌŝĂů/ŶŶŽǀĂƚŝŽŶWůĂŶ/ƐƌĞĂƚŝŶŐĂ^ŵĂƌƚDĂĐŚŝŶĞƌLJ ĐŽƐLJƐƚĞŵ

TA I W A N

Shaping the World


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Special Feature ͻdĂŝǁĂŶ͛Ɛ/ŶƚĞůůŝŐĞŶƚDĂĐŚŝŶĞƌLJ^ĞĐƚŽƌƐZĞĂƉƐƚŚĞZĞǁĂƌĚƐŽĨĂĞĐĂĚĞŽĨ /ŶǀĞƐƚŵĞŶƚ ͻĞƌŽƐƉĂĐĞĂŶĚĂƌDĂŬĞƌƐƚŽƌŝǀĞϭϬϬй'ƌŽǁƚŚŝŶ/ŶƚĞůůŝŐĞŶƚDĂĐŚŝŶĂƌLJ ďLJϮϬϮϱ

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Design Tomorrow ͻzŽƵƌ/ŶƚĞůůŝŐĞŶƚWĂƌƚŶĞƌƐ

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Where to Find Us ͻ/ŶƚĞƌŶĂƚŝŽŶĂůDĂĐŚŝŶĞdŽŽůƐ^ŚŽǁƐ

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&RQWDFW,QIRUPDWLRQ2XU2IÀFHV ͻDŝŶŝƐƚƌLJŽĨĐŽŶŽŵŝĐĨĨĂŝƌƐ;DKͿ ͻdĂŝǁĂŶdžƚĞƌŶĂůdƌĂĚĞĞǀĞůŽƉŵĞŶƚŽƵŶĐŝů;d/dZͿ

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TA I W A N

Shaping the World


Greetings

from

Director General Jen-Ni Yang, Bureau of Foreign Trade, Ministry of Economic Affairs A s o n e o f t h e w o r l d ’s m a j o r

to the country’s national economic growth

footing for the future, and the industry is

manufacturing nations, Taiwan’s total

since 1940. In addition, Taiwan is an island

now poised to reap the rewards of a decade

machinery exports soared to a record high

nation in which exports have always been

of strategic and technological investment.

of US$27.4 billion in 2018. In the same

the lifeblood of the economy. As global

year, the machine tool industry’s output

industries rush to introduce systems related

The smart machinery policies of the

value grew 3.6% year-on-year to NT$1.18

to Industry 4.0 trends, export customers

Ministry of Economic Affairs are actively

trillion, making it Taiwan’s third trillion-

increasingly insist that machine designs

being implemented, and together with the

dollar industry behind semiconductors and

have at least a certain level of intelligence,

benefits of industrial clusters and grants for

display panels. More than 50% of Taiwanese

and Taiwan’s precision machine tool makers

R&D and equipment, Taiwan's machinery

machine tool manufacturers are located

have responded over the last two years by

industr y is able to create a powerful

in the industry cluster in Taichung, which

stepping up their efforts to transition to

ecosystem with formidable technological

is at the heart of the industry’s success.

smart machinery.

capabilities, which will ultimately allow

The network of companies comprising the

the industry to transition smoothly into

cluster has achieved powerful synergies

Taiwan is one of the few countries

the Industry 4.0 era, thereby increasing

in terms of specialized division of labor,

with an advantage in both industrial

its competitiveness, and bolstering the

flexible manufacturing, and resource

machinery and IT products. Consequently,

industry's image as a major global supplier

sharing, and has become a key competitive

the government has determined that smart

of Taiwan's machinery industry.

advantage for Taiwan’s machine tool

machinery be among the sectors for further

industry. Presently, Taiwan is the world’s

development. Smart machinery and IT

Industry 4.0 requires the integration

fourth-largest machine tool exporting

industries will benefit from the integration

of IT and OT systems, but with Taiwan’s

nation and is ranked second in shoe

of public and private resources, which

extensive experience and expertise in these

manufacturing equipment exports, fourth in

will take our fundamental manufacturing

two sectors, it is easier to obtain and build

woodworking machinery exports, and sixth

technologies to the next level.

the relevant key components here than

in plastic/rubber manufacturing equipment and textile machinery exports.

in virtually any other country. Moreover, In 2016, the government followed up by

the broader environment in terms of

launching the “5+2 Industrial Innovation

market demand, government policy, and

The development of Taiwan’s machine

Plan”. The industries involved in this plan

manufacturers’ expertise and openness to

tool industry reflects the country’s overall

include green technology, smart machinery,

new ideas gives Taiwan a formidable edge in

industrial capabilities, as well as its ability

aerospace, as well as new agriculture and

this new era. Given the integrated hardware

to meet various technical challenges

the circular economy. This plan aims to

and software, and R&D capabilities in

such as machinery design, processing

develop smart manufacturing applications

Taiwan, we are confident that Taiwan-

and manufacturing, automated control,

and solutions based on various smart

made machinery is ready for the new wave

information software, electromechanical

technologies, while encouraging end users

of the industrial revolution, and Taiwan will

interfaces and systems integration. The

in the manufacturing industries to adopt

continue to be an intelligent partner for the

industry has not only played an important

such solutions as a means of transitioning to

global manufacturing industries.

supporting role in the manufacturing sector,

‘intelligent industries’. The plan has helped

but has also made a substantial contribution

put Taiwan’s machinery industry on a strong

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Message from TAITRA, CSD Heads

Taiwan’s machinery industry plays a

become a global manufacturing hub

key role in the global market. As a small

for intelligent machinery and high-end

island economy, Taiwan makes industrial

equipment. The Intelligent Machinery

machines that are mostly geared toward

Development Program is one of Taiwan’s

export. Over 1,500 small and medium-

five strategic industrial development

siz ed machiner y manufacturers in

programs. The program aims to strengthen

Taiwan are capable of providing flexible

the industry value chain with intelligent

production, technical support and short

manufacturing, products and services

lead times.

through customized production, and seiz e oppor tunities in the US $5.2

In this new wave of Industry 4.0,

tr il lion aerospace market. Ongoing

the global demand for the

investment into machine development,

machinery industry is forecast

new technologies, and innovative solutions

to continue growing. The

fuel growth and thus help Taiwanese

trend toward intelligent

manufacturers improve their quality, design

manufacturing and industry

and image. Taiwan’s reliable machines

4 . 0 h a s l e d Ta i w a n e s e

and components also help them become

manufacturing industries

trusted partners of global companies.

to develop corresponding cloud computation,

Sponsored by the Bureau of Foreign

industrial sensors, and data

Trade (BOF T ), TAI TRA and CSD

transmission systems.

launched the Integrated Marketing Communications Project for Taiwan’s

Ta i w a n a i m s t o

Walt Wa l er e M. S. S. Yeh h P es Pr e ident & CE C O Taiw iw wan n Ext xter erna er n l Tr na Trad a e Deveelopmen ad nt Counci c l (T TAIITR TRA) A)

TA I W A N

Shaping the World


Smart Machiner y Industr y in 2018.

machinee tool trade show in the world,

The project ’s primar y purpose is to

and serves as a comprehensive sourcing

bolster the industry’s image, and present

platform for the machine tool industry. To

it as an intelligent partner for global

meet market demand and challenges that

manufacturing sectors, targeting markets

emerged from ‘Industry 4.0’, TIMTOS

such as Mexico, Russia, Vietnam, India,

is committed to promoting cutting-edge

Thailand, Indonesia, USA, Japan, and

metal processing machineries and smart

Europe.

manufacturing solutions. TIMTOS offers smart machines containing industrial

Since 2018, the project has organized

robots, Internet of Things (IoT), big data

a series of marketing activities at major

analysis, remote control, cloud computing

international machinery shows. Events

and more. It is definitely a ‘must-attend’.

include press conferences and product launches, technolog y forums, smart

TAITRA will continue to work with

machinery pavilions, and delegations of

both the central and local government to

machinery manufacturers. In addition,

promote Taiwan’s intelligent machinery

we gathered the latest VR technologies

industr y. We strongly believe the

to showcase the smart manufacturing

industr y will continue playing a

solutions being offered by some of the

crucial role in greener, smarter, and

most esteemed Taiwanese companies.

more efficient production. We also encourage you to visit

Beyond marketing activities in overseas

www.twmt.com for more

trade shows, Taipei International Machine

information about Taiwan’ss

Tool Show (TIMTOS), co-organized by

smart machinery

TAITRA and TAMI,, iiss the tth he third t ir th i d larg rgestt rges

indu dust du stry ry.. ry

Hsin Hs in-h in -hua Chuu -hua -h Pres Pr esid es i ent id ent en Corp Co rpoor rp orat atee Syyne n rg gy De Deve velo ve lopm lo pmen pm entt Ce en Cent nter nt e (CS er CSD) D) D)

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Alex Ko Chairman of the Taiwan Association of Machine Industry (TAMI)

TA I W A N

Shaping the World


Government, Industry and Academia’s Joint Blueprint for Industry 4.0 in Taiwan

While Ta Taiw i an covers an n area ssm mal alller than Switzer erla l nd, i ts m maa ch chin ine n e to tool ol seect c or is worth h mo m re thaan one trillion t Taiw Ta iwan n d ol olll ars (NTD) peer year, r with outputt val alue u hitting NTD TD $1.1 ttrillion in 2018. A s Alex Ko, C ha h irman m of the Taiwaa n Association of Ma Machine a Industrr y (TAMI), explain ned d, Taiw aiwan a ’s maanufacturing industry is cch har aracte teri rizzed by the prevalence of small aand meed ediumsized enterprises (SMEs). The isl slan and d is home to more than 13,0000 compa pani nies e, many of which are loocated d in in ndustryy clusters, enabling the h m to deeliver fl fleexible, customized produ u ction o f e ve verything y from parrts and modul u arr coom mpo p nents e to en entire macchi hine nes, ne s, as we well ll as pe peri rip ri pher p heral alss and an d ev even en n pla lann n in nn ingg fo for or en enti tirrree prood ti duct du c ion liines. nes. Th Thes esee ca es capa pabi pa b liiti bi tiess haavvve loong bee ties een n reco re cogn co gniz izz ed by hi high gh-e gh -end -e nd an nd midra draangge cust cu stom st omer om e s both insid er idee aan id and d ou outs tsid ts idee id Taiwan, but recent effortts to acti tive vely ly develop p in inte nte tell llig ll igen ig en ent nt ma mach chin ines e and nd d smaart m nufa ma faact cturr in i g ha have vee f ur urth ther th e b olst er oll st ster ered er ed d thee ca th capa p bi pa bili liti li ties ti es of Ta Taiw iwan a ’s machi hine ne too ooll indu in dust du stry st ry over th thee la last st fou ourr ye year ars. s. Given the importance of sm artt mach smar h in iner er y in t he i nt n elli ell li lige gent ge nt manufacturing trends ds off recentt years, innovative business mode d ls l involving the

integration of hardware and software systems are critical for the future.. For this rea easo s n, Mr Ko believes that helping machin ineryy maakers transition or div iversify into the he sys y te tem integration (SI) sector willl be a keey trend for the industrr y. TAMI is also working to imp plement th h e governme m nt ’s smart mach h iner y poo lici cies e , and has achieved a num m ber of s uc ucce cess sses es, includ udingg ad adop opting ng the Toyo To yota ta Pro r du duct ctio ion n System (TPS) as thee ba th basi sis for fa factor oryy ma management and intelliggent manufa in fact cturrin ing, g, and n creating Smarr t Machine Boxe xess (S (SMB MBs) s),, wh w ich h are ke keyy compon n en e ts f or c on onne nect ctin ingg lega le g cy mac ga achi hine hi nery ne ry to ne n tw twor orks ks.. TA TAMI MI and an d th he Sm Smar ar t Ma Mach c in ch iner eryy Pr er Prom om mot otio ion Office Offi ce are als lsoo combin in nin ingg th thei eirr ex ei expe p rt pe rtis isse to cater to sp to pec ecif iffic needss in th thee en entr trytr y-leve le vel, ve l, mid idra raang rang nge, e, and hig ighh-en hend en d se sect ctor ct ors, or s, as w ell ell l ass h ol o dii ng n g a num mb bee r of r oa o d sh h ow owss an and d se semi mina mi nars na rs t o sp s pee eee d up t he proc pr ocess of con onne n ctingg ma mach chin in n e too ol olss to the c lo loud ud. Th Thee ne next xt sta tage ge is to poo ooll fina fi nanc nciiall re reso sour urce cess by cre reat a in ng a pu ubl blicc mach ma chin i er eryy clou oud. d. To this i end nd,, TA TAMI MI is b ui u ld ldin ingg a ne netw twor orkk of p ar artn tner erss in indu in dust stry ry and aca cade demi miaa to joiint ntly ly dev evel elop op appl ap plic icat atio ion n pl plat a fo form rms, s, wit ith h thee go goal al of creating hardware and d soft ftwa ware re sys y te t ms

for machine cloud service pll at atfo forms, demo monstrattio ion n se serr vicee teams, and d shared software re-as-aa-seervvic i e (SaaS) mod dul ulees. Th he SMEs Es th hat make up p th thee bu b lk of Taa iwan’s mach chin n e too ol ind d uss tr y doo n ot h av ave access ss to the vast H R and d fi fina n n ciaa l ree sources that large coorp r oratiionss enjoyy, butt with the support ooff TAM AMI an and d go gove vern n ment policies, their resilience has enabled them to crea eate a uniquel ely flexibll e v er ersi sion on of Industry 4.0 in Taiwan. In Indu dust stry ry 4 .0 pres pr eseents t an outstand ndingg op oppo port rtun unit i y to movve the ent ntir iree machin hinee to tool ol ind ndus ustr tryy tr upm markkett by leveraging the he formi m dable stren st n g th o f Ta Taiw iwan an’s inforr mati tion and coo mm m un u icc at ations ns technoll og ogy (I (ICT T) indu in dust stry st ry.. Ne ry N ve vertheless, smart mach chin iner eryy and an d in inte tell llig ll i entt ma ig manu nufacttur u in ng ul ulti timaateely d pe de p nd o n co core re c om ompe p tee n ciee s in t he mach ma chin ch iner in eryy se er sect c or ct or,, so TAM AMI an and d the th he gove go vern ve rnme rn ment me n a re a ct nt ctiv ivel elyy wo work rkin ingg too tran tr ansf an sfor sf orm or m a va vari riet ri etyy of m ac et achi hine ne t oo ooll make ma kers ke rs int nto to ma mach chin ch in ne sy syst sttem int nteg e ra eg rato tors to rs th hat c an n hel elp p Ta T iw iwan an’s an ’s manu an nufac a tu uri ring ng industry and nd equ quip ip pmeent sup u pl plie iers tur urn n thei th eir intell llig i ent en nt ma manu nufa nu fact c uring vision in nto rea eali lity t as sooon as po possib ible le.

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Yen Jui-Hsiung Chairman of the Taiwan Machine Tool & Accessory Builders' Association (TMBA)

TA I W A N

Shaping the World


TMBA Chairman: Intelligent Machinery Solves Problems for Many Industries

Despite intense international c ompetition, Taiwan’s machine tool industry ach h i eved reco cord rd o ut u pu p t of over ov e one trillion NT T D in 20117, 7 while th h e ec econ onom omic ic recovv er y he help p ed the electroonic equ uip ipme ment nt ind n us usttry tr y to ach chie i ve ie ve grow gr o th ass hi high gh as 544%. As compan aniiess h ve d e v ell oped sma ha marr t m achi h ne ner y, many ma ny h avv e found thatt t hee l ac ackk of univ un iver ersa sall st stan and d ard d s maa ke kess it v it itaa l to solv so lvee re real a -w al -wor orld ld iss s ue ues fo forr a va varriett y of manu ma nufa nu faact ctur urin ur i g se in sect c or ct orss. Yen Ju Ye Juii-Hs iHsiu Hs iung iu ng,, Ch ng Chai airm rman an n o f the Taiw w an M acc hi hine ne Too o l & Ac Accesss oryy B u i l d e r s ’ A s s o c i a t i o n ( T M BA ) , expl ex plai aine ned d that, t “I “Int ntel e ligent machi h neery hi s rate st tegi gies es sho houl ho uld ul d no nott be lim i itt ed im d to machine tools, but rat athe h r shou o ld ou d extend to all machi hine ne ind ndus ustr trie ies, s ass th thee di digi g tal thin n kii ng b eh ehin ind in d In Indu dust du strr y 4 .0 can st impr prov ovee ex exis i ti ting ng proodu duct c io ion n meth thod hods. s The keyy is stilll to put this th thin inki king ng int nto practi t cee a nd s ol olve ve i nd ndus ustr tryy specific problems ms b as a ed on th the leve vell of sma mart tee ch chno noo lo l gyy u ptt ak akee in e ac a h indu dust stryy ”. Th he se semiico c nd nduc ucto cto torr and d peetr trochemicall indu ust stri ries ies hav avee be been en usi s ng automated d, conneccte ted ma mach chin iner eryy fo for tw twoo decadess, allowi wing n ope ng p ra rato toors to mo moni nito torr da data ta from m clea cl eaan ro r om omss us usin i g co in cont n ro rol pa pane nels ls, while upst up stt re r am r ob o ot o , see rvv er a nd s oftw tware

vendoors in Geermanyy have resp pon onded to deman nd from tth he car ind dustry. Specialist knowleedge froom each sector is needed, and thiis requiires the combined efforts of spee c ialist p production process and mate teri riaal suppliiers. MOEA’s p policy not only promotes the use of individual intelligent m a c hines, b ut also a w id ider er move t o wards conn nected syst s em m s th h at use central cont n rool, l, sensoo rs rs,, and turnkk eyy sm m ar artt manufaacturing soluti tion n s, with h the S mar t M Ma c h in iner er y Pr Prom omott ioo n Offi Of fice c encou ourrra ging i ng man a uf ufac actu ture rerss t o indi in dica c te the p potten enti tial for or conneect ctivvit ity by add d in ng th thee in i fini finity ty sym mbol bool (“ ( ∞” ∞ ) to prr oduc od d uc ucts ts.. De ts Dem Dem mons mo n str trat atio ion io n pr p od oduc ucti tion i on lines we w re als lsoo crreaate ted d to showc howcas ho asee th thee Taiwan hardw war a e in indu ndu dust stry st ry’s’s smaart ry r rob obot ot poolishing capab bilities and the conne onnect cted d ma manufacturing g capabilities of the plastic injection molding industry. “T T he i nterna nati t onal shift towards Industry 4.0 is pr p ogressing, but there are still no consistent global standards,” Mr Yen expla lained. The technologicallyla advanced nations nss of Europe and North America aim to “reeshor sh hor ore” e” man a uf ufac actu turi ring ng using Industry 4.00 wit ith h a fo focu cuss on hig cu ighh-

mix low-volume (HML LV ) prod oduc uctt s, while emerging markets remain focuseed on volume production,, as they are less ss affected by r isingg wagges and low land availabilityy. Ta i w a n ’ s S m a r t M a c h i n e r y Pr omotio P ion n Office h as w orked wi w th t research organizations and d mach hine too ooll manufacturers in rec ecent years to create demonstr tration production d lines for a variety of industries, using collaborating va a a m ea as e ns to better understand the ree qu quirem m ents for turnkey hardware and an d soo ftw w aree s ys yste t m in te i tegr g ation and d crea e a te t strategg iess to h elp ma manaa ge gers r rs ch hoo oose se the mosst pr profi ofittabl blee maark rkets. For exxam ampl p e, the Soouth pl th Eastt As Asiian n market et is d om omin i at ated ed by small l maa ch chin inee to in tool ols uss eed d to p prr od oduc ucee ca carr an and d mo moto to rb rbik b ikee part pa rts, s, while European cu ust stom omer om erss want wa diversity and flexibility, and R us ussi s an si clients tend to need larger machin n es es. Mr Yen advises machine tool makers to “continue to strengthen collaborations with suppliers”, and suggests that “equipment manufacturers must also ensure that they understand hardware and software integration and gain a deeper understanding of customer de reequ quir irem ements”.

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n

Treasury y of Colorful Cultures s

TA I W A N

Shaping ng the World


Taiwan, an island shaped like a banana leaf, is a treasury that includes diverse cultures and arts, and a virtual paradise on earth. Visitors fall in love with Taiwan because brilliant shows go on everywhere in every season. Beautiful scenery, cuisine, folk arts and artful creativity are joined with various traditional festivals of different cities to present a unique cultural glamour of this land.

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Almostt in ever eryy co coun u tryy al alll ov overr thee world theree iss a cha hara r ct cter e is i tiic fe fest stiv ival al or carnival th t at inf n us u es peopl plee wi w th fervor throug through gh gra gh grand and celebration celebration. Like t e festival of “San Fermin” in Sp th pain, n, “O “Okt Oktob o erfest”” in Gerrma many, “D Dia de loos Muertoos” in Me Mu Mexxico or “Mardii Graas” in New Ne w Or O lean ans in n Americaa, th he “L “Lan ante tern Fest Fe stiv ival al” on o J an n ua u ryy 1 5 in t he l un unaa r caleend ndar ar is a ma m joor galaa in Ta Taiw iwan an tha hatt gains in ga nte tern rnat atio iona nall me m di diaa co cove vera rage ge.

LOVE FOR FESTIVALS

TA I W A N

Shaping Shap ing the Worl Wo Wor o d

Beesi side dess ea eating glu utiino n us r ic icee ba ball lls, bringi ging ng o ff ffer erin i gs g t o lo loca call te temp mple le g ds f orr a p roo sp go sper erou u s ne new w ye year ar,, an and d lanter e n exhi hibi biti tion onss of diff iffer eren entt th them emes es,, three boisterous celebrations of Lant nterrn Fe Fest stiv ival al alw lway ayss at attr trac a t te tens ns of thou usa sand ndss of pil ilgr grim imss to t the hem, m, whi hich ch a e th ar h e Pingg xi xi’s ’s “ Fl Flyi ying ng L an ante tern rns” s” i n th he no nort rth of Tai aiwa wan, n Yansh shui ui’s’s “Be Beeh ehiv ivee Firecr Fi crac acke kers rs Com ompe peti titi tion on”” in the sou outh th, and Ta an Tait itun ung’ g’ss “F “Fir irec ecra rack cker erss at Mas aste terr Hand Ha ndan an”” in t he e as ast. t. I n Ta Tait itun ung, g t he m gn ma gnit itud udee of cel eleb ebra rati ting ng “Fi Fire recr crackeers at M as aste terr Ha Hand ndan a ” iss evee n grander than th an t he L un unar ar New w Yeaa r pr p op p er er,, with h h un undr dred edss of t ea eamss f ro rom m loo ca call temp p le less pa para radi ding ng a ro roun und d th thee co c un u ty and d “b “bom omba bard rdin ing” g” t he “ Ma Mart rtia ial Go God d of Fortu u ne n ” on n the h w ay ay.. Th Thee Fl Flyi ying ng Lanter erns ns in Pi Ping ngxi xi a nd t he B ee eehi hive ve Fiirecrrac acke kers rs in Ya Yans n huii arre al also so sup uper attrrac a ti tion ons, s, and the lat a ter haas a hi hist s ory of 1300 yearss and is repu p ted as one ne of the toop ten ceele lebrations in the woorl rld. d. Originally O Or igin nally l firecrackers firecrrac ackeers r aree used s d to sca se care are re away the h evils and pla l gu g es e , bu but now itt ’s a symbol o of wishing fo f r he h alth t , sa s fe f tyy and wealth to welcomee the New Ye Y arr.


LOVE FOR TEA

Ju-y Ju -yii Ba Bai, i, the ren enow own Ta Tang ng D yn ynas asty ty poet wro poet rote te in hi hiss po poem em,, “T “Tak akin ingg a na nap p aftee r lu af lunc nch, h, I w ok okee up a nd h av avee tw twoo cups cu ps of te tea. a Th Then en loo ooki king ng up at the sun un,, I fo foun nd th that at it wa wass lo lowe weri ring ng alr lrea eady dy.” .” He ind ndee eed d un unde ders rsto tood od peopl p es pl e ’ lo love ve and hate for the ha heir ir obs bses essi sioon with h te t a. It’s eas asyy to understtand wh whyy do doze zens ns of rep eput uted ed tea e a varietiess , in n cl clud udin ingg D ng Do ngdi ding ng o olong, oll Orii entaa l Be Beau auty ty,, Wenssha We Wenshan han po pouc ucho hong ho ong ng, g Al Alissha Alis han h n De Dew w an nd Sunn-Mo Moon on L ak akee bl blac ackk te tea, a havve be been n deeve velo lope ped d an and d gr grow own n in n Taiiwa wan n th thankss too the he i sl s an a d’ d s pr priv ivil ileg eged ed t er e raa in i and nd c im cl i at a e. Eve ven n th thee JJa Japa pane p nese se w ho t ak akee prid pr idee in n the heir ir own art of te teaa ca can’ n’tt re resist thee un th uniq ique ue aro roma ma and swe weet et aft fter erta tastee of Tai aiwa wane nesee tea ea.. As one of th thee most favo fa vori rite te t ea e i n th the wo worl rld, d, t he o ol o on ng plan pl ants ts g roo w in n t he c en entr tral tr al p ar art of Taiw Ta iwan an at th thee el e ev evat atio at ion io n ar a ou o nd d 500 0 to 1000 10 00 met eter ers. s. This partia i lly fe fermented teaa haas th te thee co c lor of gold and a mellow w afte af tert rtaste, and th the ooolo long ng produced d in Lugu Township has be been the indicator of top quality among competitions in Taiwan. Taiwan’s alpine tea from the areas 1,000 meters and up above sea level. The elevation is unfavorable for the pl p ant bu butt th thee dr dras asti ticc te t mp p erature an n d ampl p e hu h mi midity help p to p ree se servee thee qu qual alit ityy an and d ar a oma. a. Th Thee al alpi pine n tea is a po popu pula larr pr prod oduc ucee in the mou ount ntai ainous coun co unti ties es o f Ch Chia ia-y -yii an and d Na Nant ntou,, and more mo ree var arie ieti ties hav avee be b en dev evel elop oped e in Reenn ai Towns n hi ns hip p deep ep in th thee Ceentral M unta Mo tain in Ran ange g . The black tea from Yu Th uch chii To T wnship of N an a to tou u Coun unty ty i s al also so a notable l prod oduc u e, and nd its Tai-tea No. 18 of o SunMooon Lake bl blac ackk te tea series is especially su ucc c essf s ull in th the in intern r atio i nal ma m rket. With its ple Wi leas asan antt arom ma an and afteertaste thatt res e s embl b ess t he s we bles weetness wee e tness ooff th the g vers,, Ta gi Taiw w a nes ese tea is the h tourists’ favo fa vori ritee pur u ch hasee to take baack c for their fami fa m ly and d frien nds d.

15


Than Th anks ks t o thee pl p ea easa sant n clima mate te o f Taiwan Taiw an, th thee co colo lorf rful ul flo lora in n di diff ffer eren entt seas se ason onss fu furt rthe herr co confi nfirm rm the isl slan and’ d’ss al alia ia name na me “Fo Form rmos o a” os a”,, wh whic ich h in Por ortu tugu ggu ues ee mean me ans “b bea eaut utif ifful ul”. ”. While Ky Wh Kyot otoo in Jap apan n is kn know o n to ow t it cherry blooss its ssom oms, s, Tai aiwa wan wa an al also so pre rese sent se ntss nt glorious sprr in ng co colo lors rs eve v ry ve r y yeaar. r The moun mo u nta tain i s start to b e de deco c rate ted d with cher ch errr y b lossoms in earlyy spring in Sanz Sa nzh hi Tow owns nshiip of New Taiipe peii City. W ith i t the help from m the f avorable clim cl imat ate, e, the l ocal g o vernmen e t has grow gr own n mu mult ltip iple le var arieties of cherry trees syst sy stem emat atical a ly for more than a decade, and an d now w mo m st sce c nic trails are lined witth thee di th diff ffer eren entt sh s adess of Taiwan Che herrr y, Doub Do uble le C he herr ry and d Yo Y shin inoo Ch Cherry blos bl osso soms ms,, et etcc. Then Th en i n the heat of su summ mmer er,, th the waterr li wate lili lies es flo loat in the bree e zee hel elp p to cool co ol the adm dmir i ers’ mind and d in insspir iree th the artist sts. Str tret etch chees of water liili liess orr lootu tuss aree se seen en mostlyy in i the agr g ic i ultu uraal ar areeass of Gua uany nyin in in the Nortth an nd Ba Baih ihee in n th h e So Sout uth, h w he h re pon n ds are re u se sed d for irri ir riga gati tion on..

LOVE FOR BLOSSOMS

As t h e temperaturee sta tart rts to d roo p grad dua uall llyy in autumn, som me tr t ee eess ch han ange thei th eir coloor to ann nnou o nce the seas a on of fa fall ll foliage. fo e Tho houg ugh h geographically sit itua uate ted d in the he s em emii-tt ropical area, Tai aiwa w n is favo fa v re r d by Nature with high-alti t tu tude de land la ndfo form rms and soo maple and For ormo mosaan swee sw e t gum m tr tree e s caan be spotted d alm lmos ostt ever ev er yw ywhe h re. Da D xueshan (B B ig Snow M o u n t a i n ) , Ta i p i n g s h a n ( Pee a c e Moun Mo u tain n), ) Aowan anda Recreeat atio i n Ar Area ea, Fush Fu shou oush shan ( Blessing and Longevity ty Moun Mo u tain) and Wuling Farm arr e all p pularr sp po spots fo f r admiring fall fo foli liag age. e. When Wh en win inter comes, s it’ t’ss ti time me for the pl um tre plum rees es ( Pr P unus mum u e) t o bl bloo oom. m. With Wi th t he i nc n reasing popula lari rity ty o f it itss frui fr uitt pr prod oduc ucts t , e.g. p ickles, wi w nee a nd enzy zyme me,, et e c. c., th t e grow wth h off pl plum um tre rees es i a ls is l o in b lo loom om e sp spec ecia iall llyy in c en entr tral al and an d sout uthe hern rn Tai aiwa wan, n, w he here re R en en-aa i Town To w sh h ip a nd S ir iray ayaa Me M il ilin ingg (P (Plu lum m P ak)) ri Pe risee s too bec ecom omee po popu pula larr scc en n icc s ot sp o s in recc en n t ye year arss an and d vi visi sitoo rs can n enjooy a different vie i w of Tai a waan. n

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Shap haping ing the Worl World d


Cult Cu ltur uree gr g ow owss fr from om t he f o lkk an and d thrive thri vess on cre reat ativ ivit ityy th throoug ugh h ge gene nera rati tion onss of rej ejuv uven nat atio ion n on the bas a is of tr trad adit itio ion. n In the dev evel elop opme ment nt of mo mode dern rn dan ance ce in Tai aiwa wan, n t he “ Cl Clou oud d Ga Gate te D an a ce Theat The ater er”” fo foun unde ded d by Mr. Hwa waii-mi min n Li Ln in 197 9733 is defi efini nite tely ly the bes est. t. As th thee first prof pr ofes essi sion onal a dan ancee com ompa pany ny in Ta Taiw iwan, “Clo “C loud ud Gat ate” e” has a sur urvi vive ved d th thee ha hard rdsh ship p and an d th thri rive ved d in c re reat atin ingg cl clas assi sics cs t ha hatt comb co mbin inee th thee Ea East s and Wes estt to bec ecom omee a prid pr idee of o Tai aiwa wan n in the wor orld ld of da danc nce. e.

LOVE FOR ARTS

Land La ndsc s ap apee re reju juve vena nati tion on iss al also an i mp mpor orta tant nt s ub ubje ject ct o f le lega gacy cy and crea cr eati tion on.. On Once ce the he a rm rmyy ’s ’s re recr c ui u t trai ttr aaini ning ngg c een ente ter in te i s out outh ou ther eern n Ta Taiw a iwan, wa , WeiWe i-Wu Wu-Y -Yin ingg ac acco comp mpli lish shed e its mis issiion in 200 003, 3, and its t lan a d of mor oree th than an 60 hect he ctar ares es w as s ch ched edul uled e t o be beco come m a metr trop opol olit itan an par ark, k artt cen ente terr an and sp spec e ial comm co mmer erci cial al d i str t icc t. T he n ew WeiWu-Y Wu -Yin ingg Na Natiion onal a K ao aohs hsiu iung ng Cente t r f r th fo thee Ar Arts ts com ompr pris isess a con once cert rt hal a l, a pl play ayho hous use, e, a r ec e itt al h all l an and ot o her mult mu ltii-fu func ncti tion onal al p arts.. Th The praisee by thee Br th Brit itis i h news wspa paper “T “Th he Guardian” as an n “e “ piic sc scen ene” e” and the “bigg g estt arts t venue on n Earth th”” ca c n be b a witness ss to the cent nter er’s ’ ach chiee ve veme ment n in thee quality of arch chiteccture, pu public i art and culture re.

Courtesy of Nati Courtesy ational onal Kao Kaohsiu hsiung ng Cente Centerr for for the Arts Arts (Weiwuyi (Wei wuying) ng)

17


The Advantages of Taiwan's Manufacturing Industryņ this Island of Technology Never Stops Evolving

Key export products include machine tools, machine tool components, semiconductor equipment, rubber and plastic manufacturing equipment, ball screws, bearings and gears.

Ta i w a n ’ s m a c h i n e r y industry plays an important role in the global industry, and is the ¿ftheenth largest machinery manufacturing nation in the world.

TA I W A N

Shaping the World

The machinery industry became the third Taiwanese industry to surpass the trillion-dollar mark, reaching output value of NTD $1.1 trillion in 2017, with year-on-year growth of 11.1%.


Major export markets include Mainland China, the United States, Japan, South Korea, Vietnam, Germany, Thailand, Indonesia, India and Singapore.

Taiwan is the world’s 4 largest machine tool exporting nation, and is ranked second in shoe manufacturing equipment exports, fourth in woodworking machinery exports, and sixth in plastic/rubber manufacturing equipment and textile machinery exports.

Taiwan’s machine tool industry is made up of around 13,000 companies employing 23,000 people, and has already transitioned into a high-tech, high-precision industry.

TIMTOS is the world’s 3 largest machine tool show.

19


Friendly & Convenient With convenient transport links, a high level of safety, and numerous tourist attractions, Taiwan is often ranked one of the top stops for international tourists.

WELCOME

Taipei’s YouBike has the highest turnover of any urban bicycle scheme globally, with bikes used up to 15 times per day.

Taiwan is ranked as the 6th safest country in Asia and the 34th safest worldwide. -2018 Global Peace Index, Institute for Economics and Peace-

The highest density of convenience stores in the world and 24-hour opening provides easy access to consumer products.

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Shaping the World

Taiwan was ranked as the second most welcoming country for expats in Asia - 2018 Expat Insider Survey-


Strong, g, Sta Stable Investment and T Trade d Environment Taiwan has been recognized by numerous international reports for its technology, infrastructure, human resources, and other key elements for success.

Taiwan is ranked 13th for global competitiveness and 4th in (ast $sia and the 3aciÂżc. -2018 World Economic Forum (WEF) Global Competitiveness Report-

4G is available throughout Taiwan, with LTE network availability exceeding 90%. -2018 OpenSignal Coverage Report-

Taiwan ranks 13th out of 190 economies for ease of doing business. -2018 Doing Business Report-

Kaohsiung is the 15th busiest container port in the world. -World Shipping Council-

21


The World’s Only Machine Tool Industry Cluster Delivers on a Stunning Scale The output value of the Taiwan machine tool industry surpassed one trillion Taiwanese dollars (NTD) for the first time in 2017, making it only the third Taiwanese industry to do so. In the same year, Taiwan also became the world’s fourth-largest machine tool exporter. More than 50% of Taiwanese machine tool manufacturers are located in the industry cluster in Taichung, which is at the heart of the industry’s success. The network of companies present in the cluster achieve powerful synergies in terms of specialized GLYLVLRQRIZRUNÀH[LEOHPDQXIDFWXULQJDQGUHVRXUFHVKDULQJDQGKDYHEHFRPHDNH\ competitive advantage for Taiwan’s machine tool industry.

TA I W A N

Shaping the World


The Greater Taichung area is home

company in the cluster.

industry cluster to cement its position as a global leader in terms of both quantity

to around 1,500 large manufacturers,

and scale.

including globally-renowned companies

The advanced technologies and quality

like Fair Friend Group (FFG), Hiwin,

available in this, the world’s only machine

Victor Taichung, Chmer, ChumPower,

tool and component industry cluster,

Taiwan is also home to another industry

Tongtai, YCM and AWEA, as well as

enable global companies to meet all

cluster located just an hour from Taipei in

over 10,000 smaller satellite firms.

their needs in one convenient location.

Hsinchu Science Park (HSP). In addition

The resulting supply chain covers key

The cluster has also boosted the

to contributing over one trillion NTD to

parts and components for sectors

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the Taiwanese economy, HSP is one

including machine tools, dies and

tool industry. As the Business Weekly

of the world’s key technology hubs. As

molds, controllers, sliding rails, clamping

article 60 Kilometers That Influence

intelligent machines have become a key

fixtures, metal cutting and milling tools,

the World – The Golden Valley Below

trend in global manufacturing in recent

power components, and transmission

Dadu Mountain explained, Taichung’s

years, the ability to integrate advanced

components.The wider ecosystem

Golden Valley is of vital importance to

technology into machinery has become

serves industries including molded

the global machine tool supply chain.

even more critical. The growing links

plastics, textiles, petrochemicals, hand

This 60-kilometer stretch of land is

between HSP and the Taichung industry

tools, warehousing, logistics, and air

responsible for over a trillion Taiwanese

cluster will help build an intelligent

conditioning, and provides a formidable

dollars (NTD) of business, with machine

machine industry ecosystem with unique

combination of competition and

tool manufacturers continuing to invest

capabilities that will enable Taiwan to play

collaboration that also benefits every

in R&D, technology integration, product

an even more vital role in the Industry 4.0

management, marketing strategies

era.

and services; this ongoing growth and improvement will enable the Taichung

23


Formidable IT and OT Capabilities Give Taiwan an Edge in the Industry 4.0 Era

While the German government’s launch of the Industry 4.0 policy in 2012 sparked a global revolution in intelligent manufacturing, it took around five years before the market caught up with the hype and moved into a period of growth; today, many global manufacturers of automated systems and machinery report that the market’s transition to smart equipment is already well under way. Taiwan has long been a key global manufacturing center, as well as a leader in the information and communications technology (ICT) and machine tool industries. The government has also developed and rapidly implemented policies to support smart manufacturing, and the combined efforts of government and industry have given Taiwan a number of significant advantages as manufacturing moves into the Industry 4.0 era.

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The evolution of Taiwan’s machine tool industr y was originally driven by two key factors: one domestic, the other external. On the domestic front, most of Taiwan’s major manufacturers were founded during the 1970s and 80s, just as the first wave of automation technology arrived. More than three dec ades later, equipment created using this legacy technology is ageing, obsolete, and unable to deliver the huge production capacity that today’s markets demand. The meteoric rise of Industry 4.0 technology began just as Taiwan’s manufacturing industry entered a period of transition that necessitated the use of more intelligent and flexible production methods to adapt to changing markets. On the external side, Taiwan is an island nation whose economic pulse has always been driven by exports. As global industries rush to introduce systems fit for the Industry 4.0 era, export customers increasingly insist that machine designs have at least a certain level of intelligence, and Taiwan’s precision machine tool makers have responded over the last two years by

stepping up their efforts to transition to smart machinery. The intelligent vision of Industry 4.0 will be implemented through socalled “click and mortar” business models that integrate online and offline elements, and consequently require the development of key hardware and software components. The Industry 4.0 operating model involves gathering data from machines using sensors, and then uploading the data via telecoms equipment to the cloud, where it is aggregated to form big data, which then requires storage, computation and analysis. The associated key components include sensors at the bottom level, gateway devices at the middle level, and cloud platforms at the top level. Mature technologies are already available for the sensor and gateway devices, but applying them in the harsh environments of manufacturing machinery requires the adoption of industrial-grade specifications. The Ministry of Economic Affairs’ (MOEA) smart machiner y policy advocates

integrating the two elements into a smart machine box (SMB), so that data can be extracted from existing machiner y that lacks the requisite design elements, making it easier for manufacturers to take the first step towards Industry 4.0. With regard to the top-level cloud platforms, many manufacturers already offer intelligent cloud systems that make it easy to connect manufacturing machinery to the cloud, and feature simple, yet powerful interfaces for managing production manufacturing sites. Industry 4.0 requires the integration of IT and OT systems, but Taiwan’s extensive experience and expertise in these two sectors mean that it is easier to obtain and build the relevant key components here than in virtually any other countr y. Moreover, the wider environment in terms of market demand, government policy and manufacturers’ expertise and openness to new ideas gives Taiwan a formidable edge in this new era.

25


Taiwan’s 5+2 Industrial Innovation Plan is Creating a Smart Machinery Ecosystem Manufacturing is the lifeblood of Taiwan’s economy, and the island’s government and industry are both taking proactive measures to move forward into the Industry 4.0 era. The government’s 5+2 Industrial Innovation Plan announced in late 2016 listed smart machinery as one of five key industries, as well as designating Taichung as the country’s smart machinery capital. As part of this Plan, the government is actively promoting the development of intelligent machinery and associated sectors to improve the entire value chain of Taiwan’s machine tool industry, help industry to upgrade, and expediate the Industry 4.0 transition.

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Shaping the World


Taiwan is one of the world’s major manufacturing nations, with total exports soaring to a record high of USD $25.6 billion in 2017. In the same year, the machine tool industry ’s output value grew 11% year-on-year to NTD $1.1 trillion, making it the Taiwan’s third trillion-dollar industr y after semiconductors and display panels. At the 2018 Taipei Intelligent Machinery & Manufacturing Technology Show (iMTduo), President Tsai Ing-wen explained that, as smart machinery is one of the key industries championed by the government, her administration will work to make Taiwan stronger in the Industry 4.0 era by achieving greater resource integration, expanding efforts to develop high-level technical talent, and increasing the share of machinery and device industry output accounted for by domestic production. To build momentum for Taiwan’s smart machinery industry, Taichung City Government and the central government designated Taichung as a

demonstration center for the promotion of smar t machiner y in 2016. The key goals were to build partnerships between government, academia, research institutions and the relevant industries, jointly establish a Smart Machinery Promotion Office, and encourage the approval of planning applications for industrial land use. An Intelligent Manufactur ing P ilot scheme was created in Taichung City Precision Machiner y Innovation Technology Park with the assistance of the Ministry of Economic Affairs (MOEA) and the Industrial Technology Research Institute (ITRI), while a Global Smart Machinery Development Center was also unveiled this year. In addition to helping businesses in Central Taiwan enter the smart machiner y sector, these initiatives will enable Taiwan’s machine tool industry to progress from exporting individual machines towards higher-value-added business models that involve the delivery of complete smart manufacturing systems, entire production lines, and even whole factories. This transition will help to build a secure future by linking local businesses with national and international industries.

In 2018, the MOEA also launched a five-year program to install more t h a n 9 , 0 0 0 s m a r t m a c h i n e b ox e s (SMBs), which will allow companies to instantly add Internet of Things (IoT) connectivity to existing equipment. The goal is to collect production data that facilitates the visualization of production management and the optimization of production scheduling. By bringing s m a r t f e a t u re s t o m a c h i n e r y a n d devices, the MOAE aims to increase the quality, efficiency, precision and reliability of production, and thereby boost the competitiveness of Taiwanese companies. The MOEA’s smart machiner y policies are already being actively implemented, and together with the benefits of industrial clusters and grants for R&D and equipment, are enabling Taiwan’s machine industry to create a powerful ecosystem with formidable technological capabilities that will ultimately allow the industry to transition smoothly into the Industry 4.0 era and increase competitiveness.

27


Taiwan's Intelligent Machinery Sectors Reaps the Rewards of a Decade of Investment

In 2008, the machine tool industr y followed in the footsteps of the semiconductor and display panel industries to become Taiwan’s third trillion-dollar (NTD) industry, recording new highs in production and sales figures. Despite the impact of the global financial crisis, Taiwanese companies benefitted from the advanced manufacturing revolution that began in Germany and the United States, and seized the opportunities presented by intelligent machinery with both hands. As many industries begin to switch to intelligent manufacturing methods, Taiwan-based firms are well placed to benefit from independently-developed technologies, but must be careful not to give away this precious advantage for short-term gains. The 2011 launch of Germany ’s Industr y 4.0 strateg y and the US’ Advanced Manufacturing Plan (AMP) were intended not only to offset the impact of the financial crisis that rocked the global economy, but also the competitive advantage of lowcost manufacturing in the emerging

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Shaping the World

economies of the 21st century - and the enormous trade deficit that it has caused. This last issue has caused many countries to jump on the intelligent manufacturing bandwagon in recent years, and is also largely responsible for the gathering trade war between the US and China, partly sparked by China’s “Made in China 2025” plan. In 2012, Taiwan launched the “Three Industries, Four Reforms” policy, which aims to use “servitization” to transition the manufacturing industry away from a simple hardware/software product model, and towards a new paradigm based on using specialist technical services to boost revenues. However, unlike the semiconductor and display panel industries, many machine tool companies have maintained a strong manufacturing presence in Taiwan, and are also able to utilize the dual advantages of proximity to Taiwan’s precision machinery and ICT (information and communications technology) industries. In 2016, the government followed


up by launching the “5+2 Industrial Innovation Plan”, which aims to develop smart manufacturing applications and solutions based around a variety of smart technologies (i.e. “intelligent manufacturing”), and encourage end users in the manufacturing industry to adopt such solutions as a means of transitioning the sector into an “intelligent industry”. I n t h e s a m e y e a r, t h e Ta i w a n Machine Tool and Accessories Builders’ Association ( TMBA), the Taiwan Automation Intelligence and Robotics Association (TAIROA), the Taiwan Semiconductor Industry Association (TSIA), and Semiconductor Equipment & Materials International (SEMI) jointly announced the launch of a multiindustry alliance intended to bring the dynamism of the consumer electronics design sector to the industrial sensor industry. By 2017, electronic devices were already a key element of the machine tool industry’s trillion-dollar (NTD) value.

Since 2015, the Taiwan Association of Machinery Industry (TAMI) has been touring Taiwan in an effort to promote demonstration production lines intelligent manufacturing. To date, 18 manufacturers have already set up such production lines. In May 2018, TAMI organized the first Taipei Intelligent Machinery & Manufacturing Te c h n o l o g y S h o w ( i M Td u o ) t o highlight the initial results of the introduction of intelligent machinery. The ultimate goal is to use intelligent machinery and intelligent manufacturing as a way to “upgrade” industries, thereby facilitating a transition from the individual machine sales model of the past to a systems integration (SI) model. The plans, programs and research activities outlined above have all helped put Taiwan’s machine tool industry on a strong footing for the future, and the industry is now poised to reap the rewards of a decade of strategic and technological investment.

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Aerospace and Car Makers to Drive 100% Growth in Intelligent Machinary by 2025

Taiwan’s machine tool industr y reached a major milestone in 2017, with total output value passing the trilliondollar (NTD) mark. The industry’s next key target is to leverage rapid growth in intelligent machines and intelligent manufacturing to reach two trillion dollars within a decade. The aerospace and car manufacturing industries will be the main drivers of this growth, as Taiwan-based machine tool makers continue to offer even greater value in terms of quality, efficiency and cost control. Following the launch of the AIM Team industr y alliance formed in 2013 by the machine tool industry in conjunction with a number of academic and research institutions, Taiwan Aerospace Industry Association, and Aerospace Industrial Development Cor poration (AI D C), announced the launch of the Taiwan aerospace industr y ’s A-Team m 4.0, Education C e n t e r a n d Fo r u m p l a n s a t t h e 2015 Taipei Aerospace & Defense Technolog y Exhibition (TADTE).

TA I W A N

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In 2017, the Taiwan Association of Machinery Industry (TAMI) also signed a Memorandum of Understanding regarding the creation of a national team to capitalize on new opportunities in the global aerospace market. The ability to make use of the impressive system integration (SI) and project management skills accumulated by AIDC over the years will help the machinery industry to strengthen its capabilities, and enable the industry to go from strength to strength in even the most demanding areas of the machining and composite material processing sectors. Once the Taiwan machine t o o l i n d u s t r y ac h i e ve s ae ro s p ac e manufacturing certification, it will be even better placed to thrive in other industries, and this will also increase companies’ willingness to collaborate. AIDC can also play an important role in this process by maximizing the benefit of Taiwan’s integrated industry clusters, which are unrivaled on a global level.


AIDC participates in more than 700 international aerospace trade shows and forums each year and has established close contacts with B2B suppliers. This has enabled AIDC to gain accurate insights into market trends and product positioning, as well as collaboration models for projects involving government agencies, academic and research institutions, engine makers such as GE and Rolls-Royce, and aircraft manufacturers like Boeing and Airbus. As aircraft and engine manufacturers need to use intelligent manufacturing to boost efficiency by a factor of four or five to meet production capacity demands for the next decade, AIDC is opening up its independently developed AIDC Platform, so that A-Team members can share existing manufacturing technologies and work together to create the correct product positioning and collaboration models.

In recent years, the car and automotive component industries, which are the largest users of machine tools, have begun to embrace and share the new opportunities brought about by electric vehicles. As electric vehicles begin to replace combustion engines, it is vital that the machine tool industry adapts to the manufacturing needs of these key markets by transitioning to new technologies and developing products with ne w functionalit y ; only then will the industry be able to maintain the level of competitiveness required to maintain its strong position in global supply chains. Examples of such products and technologies include composites and other lightweight materials with the structures and sizes needed for automotive components; such products can be created from existing structures using hybrid techniques such as additive/ e subtractive machining and pressing, in order to improve capabilities for high-diversity, low-volume machining.

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YCM’s Smart Manufacturing Integrates Interfaces and Platforms / YEONG CHIN MACHINERY INDUSTRIES CO., LTD.. / No. 888, Sec. 1, Homu Road, Shengang District,Taichung 42953, Taiwan / +886-4-2562-3211 / sales@ycmcnc.com / www.YCMCNC.com

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Specialist Subcontracting Delivers Custom Solutions with a Technical Edge

Over the last two years, industries wor ldwide have begun to step up the pace of transitioning to smart manufacturing. According to Gardner Intelligence Research in 2017, Taiwan remains the world's 4th largest machine tools exporter though facing intense c o m p e t i t i o n f ro m E u ro p e, J a p a n and Korea. This significant result

demonstrates Taiwanese companies are delivering not only a high level of technology and product quality, but also providing flexibility and value at reasonable cost. YCM ( Yeong Chin Machinery Industries Co., Ltd.) is a Taiwan machine tool manufacturer with a long history and strong track record of leading innovation and quality, most notably the Yeong Chin Machinery Production System (YCMPS) and the M-Team Alliance. Today, the company exports a wide range of turnkey solutions for smart factory.

Taiwan machine tool industry are driven through its flexibility and strong supply chain, enabling companies like YCM to work closely with contract manufacturers to maintain global competitiveness. YCM combines its core technology and vertically integrated production system and complimented with its own production system known as YCMPS that allows YCM to provide equipment with superior precision,

Richard Chen Chairman of YCM

YCM specializes in metal machining and has cooperated with a number of system integrator (SI) on secondary software development for CAD, CAM, ERP and MES applications, helping it to devise turnkey production lines, jig and fixture designs for customers and provide holistic solutions to any level of automation. T h e c o m p a n y re c e n t l y announced a partnership with Advantech to form a new DotZero Co., Ltd., providing solution-ready service packages (SRPs) that help manufacturers quickly set up IIOT platforms that provides instant visibility of their equipment utilization as well as transparency of their operation. Dotzero aims to become a major supplier of smar t manufactur ing solutions and SI services for the metalworking industry.

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By adding value through advanced application and intelligent solutions, we can offer total and customized solutions to end users based on their requirement through research and planning from customer situation. YCM further offer smart automation solutions integrating robots with software and complimented with fixture and jig designs. These efforts have enabled it to build a strong global reputation as professional manufacturing expert.

Intelligent Integration of Management and Machines

outstanding rigidity and exceptional reliability. “Taiwan’s machine tool exporters are faced with an increasingly complex competition in global market, companies can no longer afford to compete based

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on pricing or cost strategy; they also need to consider how to improve their products and services in terms of value creation, customization and differentiation.� said Richard Chen, Chairman of YCM.

As Mr. Chen explains, YCM has successfully embedded its self-developed temperature sensors and accelerometers into intelligent spindles that are used to monitor and collect spindle vibration and temperature data. With sufficient collection of data, relationships between data and abnormal characteristics can be detected to predict component life and failures, which will be helpful for production companies to achieve zero


downtimes in equipment and eliminated interruption in production lines. Another key element of YCM’s intelligent solutions is smart automation. B y i n t e g r a t i n g i n d u s t r i a l ro b o t s , intelligent machine tools, automatic measurement, statistical analysis, and central control systems, YCM is capable of providing automated solutions designed to improve production output with less manpower and facilitate improved collaboration between human and machine. YCM introduced its own intelligent HMI iProsMX with intuitive and user-friendly graphical design interface to add intelligent functionality to the standard features of Fanuc, Siemens and Heidenhain controllers, providing customers with an enhanced and efficient operating experience. YCM also introduced the ne w “i-Direct” intelligent IIOT platform. “i-Direct” IIOT platform performs as an intelligent production management system that links all equipment in the

factory for data collection and analysis, allowing the use of visualization-based remote monitoring, control and dialogue. The system gathers information for real-time operations and acquires data including equipment utilization and overall equipment effectiveness (OEE) rates; this enables managers to monitor and manage entire factories, instantly check the status of production, quickly identify and eliminate bottlenecks in the production process, and optimize production for maximum efficiency. The “i-Direct ” IIOT platform is based on YCM’s domain knowledge from its own YCMPS production system and the self-developed Manufacturing Execution System (MES) reporting, which covers areas that includes quality, equipment maintenance, fixtures and cutting tools. Live data are collect and analyze from a variety of frontend systems to perform data analytics to uncover relationships between data to identify abnormalities and fatigues, which ultimate predict behaviors that

enables self-learning or deep leaning abilities or better known as AI. YCM has positioned itself to be not only a machine tool maker, but a manufacturing solution provider for the future. Its strategy for putting intelligent IIOT platforms into practice is based on the domain knowledge of machines, production systems and automation systems. The IIOT strategy is forged through the following YCM core competence: 1) YCM follows a vertically-integrated manufacturing model that accumulated critical domain knowledge of the manufacturing process. 2) YCM are focused in cultivating continuous improvement culture through YCMPS that allows identification and elimination of waste through data collection. 3) Integration of ERP, APS, CRM and PLM software allows YCM to establish standardized processes and procedures that is the basis and foundation to achieve Industry 4.0.

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CNC Experts Taiwan Takisawa Provide Global Services for Intelligent Manufacturing / Taiwan TAKISAWA Technology Co., Ltd. / No.505, Sec. 3, Yanping Rd., Pingzhen Dist., Taoyuan City 324, Taiwan / +886-3-464-3166 / richard.su@takisawa.com.tw / www.takisawa.com.tw

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data analysis, and facilitate intelligent production management to increase production efficiency.

It could be said that a country’s m a n u f a c t u r i n g c a p a b i l i t i e s a re a representation of its strength, and the launch of Germany ’s Industr y 4.0 strategy, the US’s National Network for Manufacturing Innovation (NNMI), and Japan’s Industrial Value Chain Initiative (IVI), are more than adequate demonstrations that intelligent manufacturing is becoming a new area of intense competition between nations. CNC machine tool specialists Taiwan Takisawa have been operating in Taiwan for 46 years, during which time they have built on their parent company’s centur y-long histor y of advanced t e c h n o l o g y by b r i n g i n g t o g e t h e r Taiwanese and Japanese R&D teams and resource planning, ensuring that the company has access to both the wider Taiwanese market and channel services that can reach global markets.

solutions allow processing equipment to be managed on the factory floor using IoM, thereby integrating production management, intelligent monitoring and control, and cutting tool management and collection; they bring together information from throughout the production site, allow the visualization of equipment information using big

Manufacturing today is less about large quantities with little variation and more about customization and frequent changes in orders, making the TiMES Smart Manufacturing Execution System and IoM architecture developed by the company essential technologies for modern manufacturers. The company’s president W inston Tai says in the context of the Industry 4.0 era’s focus on boosting global competitiveness, Taiwan Takisawa is focusing on increasing the use of automation, big data, sensors and artificial intelligence, and on leading the manufacturing industr y in the introduction of smart technologies and refined modular cutting systems that meet the needs of different types of factory, while also bringing new value to businesses through greater flexible, optimized decision-making processes, and efficient information sharing. Taiwan Takisawa’s TiMES Smart Manufacturing Execution S ystem enables users to track order progress, view real-time production information

Winston Tai President of Taiwan Takisawa

Focusing Advanced Technology Supplemented by Intelligent Capabilities Taiwan Takisawa has been actively developing intelligent manufacturing technologies that use the Internet of Things (IoT) to create Internet of Manufacturing (IoM) automated customized processing solutions. These

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software simulation with active/passive modules to put together production processes, and implement qualit y control for process products. Based on heterogeneous data continuously collected from production processes, the solutions provide real-time monitoring and control of process product quality, enabling them to determine critical p ro c e s s p a r a m e t e r s a n d t h e n u s e temporal changes in process parameter sets to identify the best dynamic adjustment rules for model creation; this makes the optimization of process parameter sets more reliable, delivering a level of quality consistent with boutique machines.

on digital displays, reduce inventory of goods-in-process, track production process data to improve yields, and effectively understand the production status and control any abnormal machine actions. This in turn reduces the cost of collecting data during production, eliminates bottlenecks in production lead times, and allows subsidiaries and global OEM firms to track production progress. IoM systems allow managers to use display panels or mobile apps to view the status of machines and accumulate data on each machine at

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any time, including utilization rates, the number of pieces completed, recently used programs, speeds, and feed rates.

Enhancing Quality and Developing Intelligent Products Taiwan Takisawa’s R&D team is committed to introducing high-quality Industry 4.0 manufacturing products that use optimized designs to reduce dynamic uncertainty in process cycles and make use of rolling technology for optimal process prediction and modelling. The products also utilize

The products designed by Taiwan Takisawa are easy to monitor and control. Customers can install the yield rate monitoring/control app, while the machine designs feature 24-hour automatic output capabilities, including a network composed of intelligent subsystems that can jointly execute automated operations within the various connected machines and communicate with more advanced, factor y-level control systems to create smart factories.

Intelligent Transition Strategies to Build Global Competitiveness Winston Tai, President of Taiwan Takisawa, predicts that traditional production system makers will gradually transition to making intelligent products for smart factories, while the factories of the future will use automatic detection, prediction, comparison and reconfiguration capabilities to create a worry-free production environment. As we move towards the Industry 4.0 era, Mr Tai believes that continual research into many key technologies will be necessar y to bring existing m a n u f a c t u r i n g i n f r a s t r u c t u re u p to date with IoM and intelligent analysis platforms, while big data systems that create value by bringing ser vices online also need sustained improvements, particularly in terms of overcoming the technical shortcomings of intelligent analysis platforms. “We


will continue to improve our equipment, products, tools, technologies and methods, identify the best data analysis methods to integrate with networked systems, and gradually work to merge industrial and information systems.

This will ultimatel y help Taiwan Takisawa to expand CNC machine tool sales into new markets and help customers to build new manufacturing capabilities, so we can deliver integrated solutions that will make us internationally competitive and enable us to develop new CNC machine tool markets.�

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L&L Integrates Intelligent Production and Distribution Processes / L&L MACHINERY INDUSTRY CO., LTD. . / No.73, Industry 20th Rd., Taiping Dist., Taichung City 411, Taiwan / 886-4-2271-5727 / service@llmachinery.com.tw / www.llmachinery.com.tw

George Lin General Manager of L&L

A s i n d u s t r y a ro u n d t h e wo r l d begins to put Industry 4.0 into practice, the focus has shifted from an initial emphasis on cyber-physical system (CPS) integration to the concept of “digital twins”, which integrates design with production and distribution. L&L Machinery Industry Co., Ltd. (L&L), which built up impressive system integration (SI) capabilities as part of

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its transition to becoming an equipment manufacturer over recent years, is again leading the way with strategies focused on four key areas: design, manufacturing, sales and services.

Precisely Targeting Market Segments for the Short Supply Chain Revolution The so-called “short supply chain

revolution” has highlighted cultural differences between manufacturing nations. In the past, Taiwan could rely on high-volume manufacturing demand in Asia, but struggled in European markets, where its limited SI and processing expertise meant that Taiwanese manufacturers were often unable to provide high added-value products for mature industries such


machining software for features such as gears and variable pitch. The company also now has the ability to sell hardware and software together as a package, so that customers no longer need to hire software developers to simulate and program each piece of equipment after receiving the physical machines, thereby speeding up the education and training processes; another benefit is that despite slightly reducing its CNC machine prices, L&L can still increase the flexibility of added-value services such as hardware-software integration and warranties.

Transitioning from Equipment SI Services and Using VR/AR for Smarter Marketing

as aerospace and car manufacturing. L&L also needs to identify the best positioning in the most suitable markets in terms of product design and the sales and marketing processes, in order to boost profits. For this reason, the company has opted to focus on highvariety, low-volume manufacturing and customized production, as well as moving into the production of longaxis machine tools for plastic and rubber forming equipment and steel and forced-draught fan engineering machinery.

that L&L can add optional functions including milling, boring and grinding to implement an all-in-one work concept, reducing the need for secondary processing, as well as issues such as interference from clamps and grips. The result is improved production efficiency that goes well beyond most customers’ needs in terms of system integration. Once manufacturers move into intelligent manufacturing, it will also be possible to integrate design information to develop virtual machine tools with specialized CAD/CAM conversational

Since 2010, L&L has continued to work with academic and corporate partners to develop key technologies and software with huge potential for manufacturing. The company has also developed intelligent small-scale system integration capabilities, inc luding remote monitoring and control systems that connect to customers using IoT technology supplemented by imaging data, enabling customers to receive rapid responses, with the goal of making L&L a leader in integrated sales services for manufacturers. The next stage for L&L was intelligent marketing projects. The

Adding Value to Design and Manufacturing with 4 Intelligent Machinery Strategies In terms of smart design, L&L has introduced a product lifecycle management (PLM) platform and continues to build upon its existing strengths in 3D digital design and system integration. In just three years, the company developed a range of machine tools including the LLA and LLB 5-axis turning/milling lathes a n d t h e a l l - p u r p o s e LL S m u l t i axis composite cutting center. L&L’s designs maintain the basic structure and modular specification of the machines, so it is not necessary to design each machine from the ground up; this means

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company partnered with laboratories at National Tsing Hua University (NTHU) and National Cheng Kung University (NCKU) laboratories to develop virtual reality ( VR) and augmented reality (AR) functions that provide marketing, collaborative design, digital assembly and after-sales services. This provides trial card usage during business negotiations, letting the customer browse or operate virtual machine tools in the cloud and record feedback information; once the necessary big data has been created, artificial intelligence (AI) will continue to improve the level of veracity and accuracy to the point where the products can provide a wealth of vital information on the relevant machines and parts/ components, inc luding lifespans, precision, quality and triage services.

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D u r i n g t h e fi r s t p h a s e o f t h e collaboration program between industry and academia, L&L partnered with the Advanced Institute of Manufacturing with High-tech Innovations (AIMHI) at National Chung Cheng University (NCCU). The first VR functions were launched at the 2017 Taipei International Machine Tool Show (TIMTOS), delivering value to customers by allowing them to view the exterior appearance and dimensions of machine tools; AR applications were also developed simultaneously to replace their paper equivalents and assist customers and distributors with assembly, production, sales, service and maintenance engineer training. During the second phase of collaboration, image recording functions were added to the VR feature. George Lin, General Manager of L&L, explained that “As image and text files aren’t the same to begin with, the best thing is to just communicate directly using VR animation, and then use handheld mobile devices with AR to present 2D digital images and representations of physical parts, components and structures.� If the customer modifies the structure, the

changes can be made in parallel in the VR version; in fact, every part of every machine that the customer has viewed can be converted into PDF and video files, so that the customer can more clearly understand the specifications and performance. Alternatively, L&L can upload specialized trial processing programs to the cloud, so that managers can evaluate the actual benefits in terms


of efficiency and work hours. The third phase of the program involves the simultaneous development of specialized CAD/CAM functions for specific industries. By 2019, such features will allow the direct generation of highly-integrated virtual machining NC code, which can then be created in the Industrial Technology Research

Institute’s (ITRI) Virtual Machine Extension (VMX) cloud, together with VR and training resources. L&L is also leveraging its strengths in terms of hardware equipment and digital control systems by jointly creating an SI company with the team from National Tsing Hua University. As the machine tool industry continues to integrate digital platforms and information for

smart design, intelligent machinery and intelligent manufacturing, and companies move for ward with the development of commercial value models for intelligent machines and AI, the program is likely to be highly influential in the global intelligent machine industry.

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Differentiation Is the Key to Multiplas’s Success in Smart Injection Molding / MULTIPLAS ENGINERY CO., LTD. / No.65, Technology 7th Road, Hwa-Ya Technology Park, Gueishan, Taoyuan, Taiwan / +886-3-318-0090 / multiplas@multiplas.com.tw / www.multiplas-tw.com

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P lastic is an essential ever yday product that played a vital role in Taiwan’s economic development, as well as driving rapid development in its injection molding machine industry. However, China has recently made rapid gains in the standardized machine sector, to the extent that some Chinese manufacturers are already on a par with Taiwanese firms in terms of both technology and quality, while their production capacity is many times

larger. Multiplas’s long experience in the industry led it to develop a twopronged strategy to cope with this intense competition, focusing on fullycustomiz ed machines, while also investing proactively in intelligent machinery, so that the company can leverage its products’ greater addedvalue to consolidate its market share. As Multiplas’s General Manager David Wu explained, Multiplas was founded in 1988 and focuses on products including vertical injection molding machines, horizontal precision injection molding machines, microinjection molding machines, two/ three-color double/triple-shot injection molding machines, and golf ball manufacturing equipment, primarily for the consumer electronics, mobile device, and automotive industries. A p p l i c a t i o n s i n c l u d e a u t o m o t i ve electronics, sealing elements, connectors, home appliances and micromotors. The quality of the company’s products has earned it widespread acclaim from its customers, which include a number of well-known smartphone and headphone manufacturers.

developed technology is the only way to stay ahead of customer needs. For this reason, Multiplas develops its intelligent machine technology entirely in-house. The company began producing plastic injection molding machines fit for the Industry 4.0 age as early as 2012, and uses Internet of Things (IoT) systems to increase product performance and added

To avoid falling victim to price wars, Multiplas has differentiated itself by offering fully-customized product designs and comprehensive aftersales ser vices that ser ve specific market segments. China is the company ’s largest export market, but Multiplas also sells significant amounts of equipment to customers in India, Southeast Asia, the United States, and a number of European countries. Multiplas’s sales network is able to send personnel to assist global distributors with machine maintenance. Multiplas’ has an R&D team of 40 more than 10% of its workforce – with expertise spanning electronic control units (ECUs), hydraulics, injection molding, software and automation. As the machinery industry’s switch to intelligent machinery is being driven by the demand side, independently-

David Wu General Manager of MULTIPLAS

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such as specialist sports shoe material maker Shun Chan Industries. The company is also working with partners in other industries, for example by contracting the Taiwanese robotic arm specialist Techman Robot (TM Robot) to develop a six-axis robotic arm, and by investing with other Taiwanese companies in joint projects to develop peripheral equipment and key components.

value. Multiplas’s IMES IM4.0 Smart Injection Molding System won the sole intelligent machine prize available in the Excellence in Research & Innovation Awards at Taipei PLAS 2016. Multiplas’s positive outlook on the potential of the rubber and plastic manufacturing smart machiner y market led it to establish a factory in the Chinese city of Kunshan and a subsidiary in Dongguan. Five years ago, the company purchased a tract of land in the Zhongli area of Taoyuan to expand its Taiwanese production facilities, with investment focused on developing and producing high-end plastic production machiner y that will help to boost exports. In 2017, Multiplas was awarded a grant from the Ministry of Economic Affairs' (MOEA) Taiwan Industr y Innovation Platform Program (TIIP), and in 2018, began its 30-month Intelligent Specialized Sports Shoe Material Production Line Development Program. As David Wu commented, the program involves more than $70 million (NTD) of investment in R&D to develop technologies that can be applied to multiple manufacturing sectors. Multiplas is also refining its technical capabilities for smart machinery by building partnerships with a number of universities and research institutions, such as the Precision Machiner y

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Research & Development Center, and by working with commercial partners

These diverse strategies have enabled Multiplas to thrive in a fiercely competitive environment, while also helping its customers remain competitive and stand out in a crowded marketplace.


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Quaser Leverages Vertical Integration to Deliver Intelligent Manufacturing / QUASER MACHINE TOOLS, INC. / No. 3, Gong 6th Rd., Youshih Industrial Park, Dajia Dist, Taichung City 43768, Taiwan / +886-4-2682-1277 / sales@qmt.com.tw / www.quaser.com

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As the global industry adapts to the Industry 4.0 era, Taiwan’s machine tool makers have also adapted by achieving greater vertical integration and implementing intelligent manufacturing for both supply chains and consumer markets. Q uaser, a major Taiwanbased machine tool manufacturer, has launched a range of turnkey solutions that integrate hardware, software and automated elements, as part of an effort to diversify revenue sources. Since it was founded in 1991, the Quaser brand has built a reputation for quality and service. The company’s extensive integration of upstream and downstream elements, as well as its strong supply chain and effective OEM/ ODM business model, have enabled it to move into the production of vertical, horizontal and five-axis CNC machining centers, with a customer base spanning industries as diverse as aerospace, medicine and automotive components. As the Industry 4.0 revolution began to take off, the company responded not only by producing the intelligent machiner y needed by its existing customers, but also by promoting global uptake of intelligent manufacturing.

Differentiation Is Key to Success in the US and China Markets Taking the job shop customers t h a t a re t h e b re a d a n d b u t t e r o f the US market as an example, the company has focused on demand for high variety, low volume, make-toorder production, as the benefits of using additional software and sensors to improve production processes are often less than those of analyzing and optimizing production processes. Fo r t h i s r e a s o n , c u s t o m e r s n e e d intelligent machinery that can deliver both high accuracy and high yield, as well as monitoring and compensating for temperature rise effects on the machinery; other requirements include dampening vibrations to deal with resonant frequencies that occur under different processing conditions or when

Rock Liao President of Quaser Machine Tools

machining particular materials, and effectively improving surface roughness while maintaining yield. Most of Quaser’s mass production customers are located in China. In addition to the Internet-connection capabilities of intelligent machines, such customers want intelligent humanmachine interfaces with software that automatically reports information, enabling their production management departments to directly control factory equipment, making machine management more efficient and allowing customers to deal with any abnormalities in the sy stem. S uch sy stems also provide advance warning of component lifespans, allowing production lines to keep operating with zero downtime. Some customers even need turnkey solutions that incorporate programming for automated devices, clamping fixtures and NC processing.

Q u a s e r h a s re c e n t l y l a u n c h e d Flexible Manufacturing Cells (FMC) that integrate horizontal and fiveaxis CNC machining centers, and use high value-added (HVA) flexible interface designs to create automatic multiple-workbench transport systems. These products are also equipped with matrix-style pallet storage and highcapacity tool magazines to implement mixed production lines and unmanned o ve r n i g h t p ro d u c t i o n , i n c re a s i n g machine utilization rates. Quaser has already sold a dozen or so packages of this type. Introducing Turnkey Solutions that Cater to the Needs of Both Makers and Users Back in 2010, before intelligent manufacturing became a key concept in the market, Quaser was one of the first hardware manufacturers to develop

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software that could be uploaded to machinery, although these no-frills models had only limited functions, such as customer accounting and production sequence scheduling. In 2016, the company noticed increasing awareness of, and demand for intelligent manufacturing, prompting it to launch a new intelligent software package known as IQS. IQS allows the use of intelligent machiner y, the Internet of Things (IoT) and control room PC wireless communications within standardized production management processes, enabling customers to collect, record and store data, and create databases that help evaluate the precision of every machine and the efficienc y and qualit y of operators. The “onsite computerization” function also allows customers to record big data for cutting tool and clamping fixture management, which is helpful for onsite troubleshooting, particularly in situations where no experienced operators are available after a key employee, or the management needs reference data to plan strategies. As automated production is not suitable for use in machine tool assembly, the craftmanship and skill of the manufacturing team is particularly important. For this reason, Quaser tests all intelligent machine tools in its own

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factory before making them available to customers. Every operator has an iPad that displays the operating procedures and requires them to enter essential assembly information or measurement results in the log before progressing to the next stage. Managers can then monitor employees’ progress and familiarity with work processes. In the words of Rock Liao, President of Quaser Machine Tools, the industry “used to rely on experience and gut feelings, but now we can create objective data that uses intelligent software and humanmachine interfaces to make machine management more efficient, as well as helping to create tailor-made training and education programs for employees.” As the global economic cycle has shortened, it has become more difficult to make predictions than in the days of the seven-year cycle, and as a result, customers can find themselves ordering


equipment in good times and then facing a recession shortly after delivery. For this reason, Quaser continually collects data from existing equipment and spaces as machines are brought online and assembled, and creates databases of standard operating times and precision levels for each stage of the work process. Having used ERP systems internally for a number of years, Quaser has also accumulated a

wealth of basic data including machine production histories and complete BOMs for optional modules, many of which are used for data-based analysis and improvement. Quaser is currently working with ERP sy stem de velopers to create software that allows warehouse keepers to receive work orders via an iPad, go directly to check and collect materials,

and then enter them into the accounts at the press of a button; onsite operators can also directly check and accept items, saving valuable time. It will also soon be possible to acquire data from databases to provide sales and marketing personnel with value-added applications.

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Pailung: Intelligent Machinery for the Textile Industry / Pailung Machinery Mill CO., LTD. / No. 8, Ding Ping Rd., Ruei-Fang Industrial Park, Ruei-Fang Dist, New Taipei City, Taiwan / +886-2-2497-8888 / sales@pailung.com.tw / www.pailung.com.tw

James Wang Chairman and General Manager of Pailung

While the mainstream adoption of the Industry 4.0 smart manufacturing revolution is an important development, the evolution of textile machiner y from the original industrial revolution (“Industry 1.0”) in the 19th century is also worth reflecting upon. While textile machinery maker Pailung was founded in the 1970s as Taiwan’s garment export boom drew to a close, the company chose to keeps its roots in Taiwan and underwent a successful transition from Industry 2.0 to Industry 3.0, going on to

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become the world’s largest manufacturer of circular knitting machines. Since its incorporation in the small town of Ruifang in 1977, Pailung has focused on the weft knitting sector, as well as achieving a leading position in the areas of hardware design a n d m a n u f a c t u r i n g a n d s o f t w a re management, producing high-end textile machinery products that are more than a match for their German and Japanese rivals. The company was also

one of the first manufacturers to develop flat knitting machines and is one of very few manufacturers able to massproduce both circular and flat knitting equipment. The fabrics and knitted shoes produced with these machines are used by major international brands such as Fruit of the Loom and UNIQLO. Pailung leveraged the complementary aspects of different markets and economies of scale to increase its competitive edge and


expand the range of sectors in which it supplies and supports customers, from clothing and home furnishings to industrial grade fabrics for the automotive, environmental, biomedical, semiconductor and aerospace sectors. In 2009, during the height of the economic crisis, Pailung seized the opportunity to move into new markets by acquiring Vanguard Supreme, a century-old US manufacturer of knitting machinery. This move enabled the company to significantly boost its presence in the North American and Latin American markets, pushing its global market share up from 7% to 12% and garnering it the coveted global number one spot. Mr James Wang, Chairman and General Manager of Pailung, explains that the company ’s export efforts focus on two areas: one is generaluse machines that combine good performance with good-value pricing, while the other is the burgeoning highend machinery market. With regard to the general-use sector, the American subsidiary’s original strengths in superfast, high-volume production of more basic models have allowed it to win orders from the seven largest US brand buyers; and since the acquisition by Pailung, the two firms have been able to combine their strengths to cover more

of the market, as well as to adapt to the textile industry’s gradual shift from basic models to a focus on fast fashion. In terms of its other area of focus, Pailung has benefitted significantly from the market’s shift towards highend knitting machinery, as its German and Japanese competitors do not come close to achieving the quality, diversity, and sheer depth and breadth of product development of the textiles produced by Pailung machinery. The company has also started to use a variety of sensors to gather data that will allow the development of functions such as predictive diagnostics, intelligent processing, and uploading to the cloud for remote computing, as well as enabling it to build up the big data analysis capabilities needed for future AI-based features.

Moving Forward with Industry 4.0 The company’s intelligent machine development program is divided into three stages: 1.Introducing Manufacturing Execution Systems (MES) to improve equipment utilization rates, product yields and consistency of quality, which are the greatest benefits of the Industry 4.0.

2.Encourage textile industry clients to replace existing knitting machines that require extensive manual yarn/ creel switching operations with new equipment with automated material loading/unloading and unmanned operation, so that the finished fabrics can be automatically removed and rolled up. 3.Once the controllers and communic ation modules in these machines are connected to the internet, Pailung can use their sensors to gather data and upload it to the cloud for analysis, so that it is possible to better predict component lifespans and arrange maintenance and inspection schedules more effectively. Pailung took the first steps towards accomplishing these objectives as far back as 1988, when it began developing products with embedded systems. While these early products used bought-in CPUs, Pailung independently developed its own architecture, including the BIOS and communications environment, the benefits of which are still apparent today. The company currently produces over 60% of core components, such as controllers, in-house, while over 80% of machine parts/components and software designs are created in-house, significantly increasing the precision

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of processing equipment. The Pailung Online Monitor S ystem (POMS) launched in 2003 was connected directly to a central computer via RS485 and/or Wi-Fi, while POMS 2.0 added TCP/IP online functionality that enables Pailung to help customers troubleshoot issues directly over the internet. Once the end user receives a work order from the ERP system, they can connect to the Knowledge Management System (KMS) via the POMS monitoring and control platform, search for manufacturing formulas and parameters, and then issue instructions to the onsite manufacturing machines; users can even bring production online automatically using TCP/IP connected data exchange instead of traditional machines that require the manual replacement of production line jigs and fixtures.

“If you compare Pailung’s intelligent m a c h i n e d e ve l o p m e n t t o t h a t o f the major German and Japanese manufacturers, at the moment, only Pailung has complete circular knitting industr y solutions for e ver y thing from controllers to MES. As POMS provides both monitoring and control, it can gather data for MES, send instructions and talk to machines. This is now being incorporated into our American subsidiary’s models, so that manufacturing processes can be adjusted, changed and optimized at any time.” The second and third steps in the development process were taken at the same time and should bear fruit in the next two years. “Compared to offline methods, it takes quite a lot more time to create the most affordable and reliable ased solutions using online cloud-based methods.” As Pailung assists customers mers during the platform creation process and plays a critical role in terms of hardware ware such as machines and computer control, it has accumulated a wealth h of manufacturing experience and data that will be gradually integrated to provide vide ervo digital control of step motors and servo motors, so that no manual control ol or adjustment is required.

company systems to collect data, which is then analyzed for use in intelligent systems such as predictive diagnostics; however, much of the necessary domain knowledge is in the hands of end users, who are unwilling to reveal it. For this reason, Pailung is going as far as to sign agreements with the customers that it works most closely with, giving them priority in terms of providing services that deliver materials on their behalf, saving time on assigning maintenance personnel, while also making these end users more willing to divulge some of their domain knowhow. Creating Customized Modules that Provide End Users with Complete Before- and After-sales Services Electro-mechanical integration, digital computer control and CAD/ CAE/P LM information sof tware requires not only a significant amount

ften Intelligent manufacturing often relies on integration with a varietyy of

of mechanical design work, but also talented teams that span sectors including textiles and materials, making management even more complex than in the past and presenting a major challenge to manufacturers. Companies need product development managers to manage communication between departments with regard to development and maintenance work. Pailung took the lead in allocating an annual budget equivalent to 3-6% of revenue to the costs of its R&D team, which makes up 27% of the company’s entire workforce;

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as a result, the company now holds over 600 patents and has development a number of pioneering machines that are the first of their type in the world. As Pailung has continued to invest in component modularization and standardization for more than two decades, the company has developed a product portfolio of around 200,000 individual par ts/components and 100 integrated modules, giving it sufficient resources to fulfil the safe stock and material preparation needs of customers in over 70 countries, as well as providing immediate services. The automated storage and retrieval system (ASRS) in the company’s fivefloor warehouse facility hosts more than 60,000 commonly used items, while all parts and materials are subject to quality inspections when entering and leaving

the warehouse. Pailung has also recently introduced systematic management and supply chain management systems that allow to accurately ascertain the

dynamic status of goods, materials and price fluctuations, enabling it to forecast schedules, plans and production efficiency, in order to rapidly respond to market changes and reduce inventory costs. As the textile industry continues to be built on technology, Pailung will continue to design and manufacture products that consider the needs of customers in the textile and garment industrys, as well as those of end users. The company is actively working to identify the needs of different supply chains and the market trends for nextgeneration textile/material products; this information is then used to determine the best ways to make textile machinery to cater to these needs. Pailung has also allocated funding to create demonstration spaces that are even larger than many of their textile industry customers; the space is used to exhibit the huge variety of cloth and fabric products that can be produced using the company’s machines, allowing visitors to see and feel the resulting textiles, and experience firsthand their quality, texture, hanging characteristics, ductility, stiffness and shaping lines.

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Leading Global Metal Forming Brand SEYI Creates Smart Press Systems / SHIEH YIH Machinery Industry CO., LTD. / No. 446, Nanshang Rd., Guishan Dist., Taoyuan City 333, Taiwan / + 886-3-352-5466 / sales@seyi.com.tw / www.seyi.com

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SEYI (SHIEH YIH Machiner y Industry Co., Ltd.), the leading global manufacturer of medium to large servo press equipment, was founded by Mr S.H. Kuo in 1962 and has developed into a major global manufacturer of press machinery. SEYI’s press machinery products are used by customers in the automotive, aerospace, medical device, consumer electronics, construction

materials and hardware industries to shape, cut, bend and punch metal materials, and the company has acquired a strong reputation for its pioneering technologies and technical expertise.

Intelligent Servos Reduce Production Costs There are two main types of traditional press technology: mechanical and hydraulic. Mechanical presses operate at higher speeds, but the speed is not adjustable, while hydraulic presses are slower, but the speed is variable. SEYI’s new servo presses represent a significant improvement in terms of both aspects of performance, as the speed and position can be adjusted at any time during the shaping process, while the peak power of the press can be reduced, helping to improve the quality of the finished product; using a servo press for shaping and pressing also helps with springback issues, reduces wear and tear on molds and materials, and effectively reduces production costs for customers, as well as providing innovative ways of thinking about metal shaping that make it possible to coldshape high tensile steel plates.

also provides customers with improved smart manufacturing solutions.

Servo Products Create Limitless Possibilities for Metal Shaping SEYI’s servo presses were developed in-house with the goal of delivering the ultimate in pressing processes. The presses use the industry’s smallest aircooled servo motors to provide high torque at low speeds, while the directdrive design eliminates the need for

Cyrus Kuo President of SEYI

The automotive industry has been one of the main drivers of SEYI’s rapid growth, with a large number of customers in this sector purchasing advanced metal shaping solutions from the company. SEYI’s next-generation servo presses help such customers by providing new high tensile steel plate processing solutions that overcome the limitations of hard-to-process materials, difficult shaping processes, and complex mold designs - advantages that help customers to adapt to future metal shaping trends. The intelligent press machine systems that the company is currently developing feature servo press technologies that allow for smarter, greener manufacturing with improved high-tonnage straight-side crank presses and fully-integrated automated planning services for peripherals; the development of the “smart press whole-production line management and control system”

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additional deceleration structures and makes the press more accurate. SEYI ser vo press systems have built-in vibration motion curves and are one of the few such products in the industry with a deep-draw machining mode suitable for shaping a variety of metals, while their unique pendulum curve mode can reach speeds of 170 SPM, the highest in the industry. The designs combine high productivity, long mold lifespans, low noise, and energy-saving capabilities, while also delivering a 100% improvement in production efficiency, creating limitless possibilities for press metal shaping and setting a new industry standard for servo presses.

Automatic Integration Solutions S E Y I ’s m i s s i o n i s t o p r o v i d e customers with complete intelligent press system solutions. The company currently provides a full range of solutions for 1,200-2,400 ton production lines, configurable with two-column or four-column presses, link presses and/or programmable servo presses depending on the customer’s needs. SEYI also offers custom specifications and designs tailored to the customer’s production environment requirements, as well as giving advice on the most appropriate solutions. The company can also deploy crossbar robots, multiple robotic arms and crossbeam conveyors to provide customers with automated transport services, as well as a range of material feeding, loading and aggregation d e v i c e s ; c o m b i n e d w i t h S E Y I ’s intelligent production and management

solutions, these features help customers to make rapid progress in terms of the “servitization” of manufacturing.

Smart Manufacturing Applications and Technologies As the industry moves towards smart factories, SEYI has continued to refine its solutions and develop its “smart press whole-production line management and control system”, which centralizes the management of all the resources required for production, including personnel, equipment, maintenance, and production processes. The system utilizes hardware-software integration, big data collection, cloud computing analyses and the Industrial Internet of Things (IIoT) to enable customers to better meet order requirements and create accurate production plans that can be adjusted in real time; the production process can also be monitoring and controlled, enabling the system to transform existing automated production into highly efficient, intelligent production lines. Cyrus Kuo, President, explains that 50% of its business comes from China and 50% from other overseas markets, with the company’s business

continuing to develop globally in a balanced manner. Revenues for 2017 exceeded NTD $4.0 billion, with 70% of customers coming from the automotive industry, and the remainder principally from the home appliance, hardware and transport industries. SEYI Intelligent Manufacturing Solution also have diagnostic and repair request features that minimize downtime; it is features like this that mean that intelligent machiner y will soon be essential equipment for many companies, but it is the integration of the relevant data within a company that is most important in terms of maximizing the value of the data generated by each machine.

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Industry 4.0 Pioneers Habor Are Global Leaders in Temperature Control / HABOR PRECISION INC. / No.77 Industrial 20th Rd., Taping Dist., Taichung City 41154, Taiwan / +886-4-2271-3588 / marketing@habor.com / www.habor.com

Habor Hsu President of Habor

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and other equipment used in precision industries such as aerospace, medicine, instrument manufacturing, and electronics. Taking the printed circuit board (PCB) punching machine sector as an example, Habor accounts for over 80% of the market.

The ability to visualize manufacturing system data by sending frontline equipment status information to top-level platforms for storage, management and analysis is a key element of the Industry 4.0 concept, and temperature is one of the most critical pieces of information for many types of machinery. Over nearly 40 years in the business, Habor Precision Inc. (Habor) has consistently focused on machine tool temperature control technologies, but has concentrated particularly on intelligent temperature control since the Industry 4.0 era began to take shape around five years ago. As company president Habor Hsu (Hsu Wen-hsien) commented, the transition to smart machinery has been the most important trend in the industry over recent years, but Habor already offers a wide range of smart temperature control products that can help manufacturers make the transition smoothly.

in terms of capacity, they need to focus instead on quality, and it is for exactly this reason that Habor’s product strategy has been focused on quality from the beginning. Habor is the world leader in terms of market share in the temperature control sector, and sells to virtually every part of the world, although its largest manufacturing customers are located in Germany, Switzerland and Japan, where the top ten precision machinery manufacturers all use Habor products. Habor products are used for applications including five-axis CNC machines

As Habor temperature control devices are sold around the world, the company has its finger on the pulse of global industries and is able to get an immediate feel for customer requirements. In 2014, a particular customer commented that they would like to be able to monitor machine tool temperatures and ascertain the operational status of their machinery; Habor responded by designing an intelligent control device - which was extremely rare at the time - and in the process became one of the pioneers of the intelligent machinery sector. As Habor Hsu explained, machinery is the lifeblood of manufacturing industr ies, and consistent, stable operation is the number-one re q u i re m e n t . W i t h o u t p re d i c t i ve diagnostic functions, manufacturers often only become aware of equipment failures when production lines stop working. Even if the issues are relatively

Habor was founded in 1981 with a mission to provide high-precision, highvalue, highly-customizable temperature control products. Mr Hsu explained that competition from Mainland China has made transitioning to smart manufacturing a matter of urgency for Taiwan’s machine tool industry; as Taiwanese companies can no longer go head-to-head with their Mainland rivals

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minor, such stoppages can result in losses from the scrapping of semifinished products, but in more serious situations, the deliver y of orders can be delayed, causing reputational damage; however, all these issues can be prevented through the proper use of monitoring sensors. Mr Hsu cites the

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example of a five-axis CNC machine; while overheating can easily cause the axis of motion to become skewed, temperature control devices can be used to monitor axis temperature and prevent the machine from proceeding with the work until the temperature has fallen below a specific level. This

not only ensures that production lines can operated consistently, but also extends the lifespan of manufacturing equipment. In addition to predictive diagnostics, Habor’s smart temperature control products offer features including remote configuration and real-time monitoring/control, allowing them to


meet the needs of the Industry 4.0 age. Habor has invested significant resources in R&D since the ear ly days, and its independently-developed technology allows it to quickly respond to customer requirements with highquality, tailor-made products. Mr Hsu

explained that while the market had to go through a period of education after Germany first launched the Industry 4.0 policy in 2011, machinery suppliers and manufacturing firms have begun to implement the relevant concepts in recent years. In the case of Habor, the company got involved with smart machiner y at an early stage, has longstanding partnerships with major international manufacturers, and is already at the forefront of its industry, putting it in an exceptionally strong position. By way of example, Mr Hsu points to the products Habor has so far launched in 2019, whic h have capabilities that go well beyond the industry ’s current intelligent manufacturing requirements. It is therefore evident that Habor already has impressive technic al c apabilities and will continue to invest in R&D for the f u t u re, e n a b l i n g t h e company to help its customers increase their competitiveness as they move into the Industry 4.0 era.

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Cosen: The Saw Industry Giant Providing Intelligent Services Worldwide / Cosen Mechatronics Co., Ltd. / No.106-2, Ln. 175, Sinsi St., Jhubei City, Hsinchu County 30243, Taiwan / +886-3-551-9700 / service@cosen.com.tw / www.cosen.com

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The digital revolution is a hot topic for the global manufacturing industry, with innovations such as big data, artificial intelligence (AI), the Internet of Things (IoT) and robotics occupying a vital position in global business today. These developments are particularly relevant to Taiwan’s manufacturing industry; now that the era of highvolume production and OEM/ODM manufacturing services has drawn to

an end, digital technology is proving to be a powerful driver of new economic activity. For Taiwan’s machine tool industry, products are essentially vectors for these technologies – systems, services and new business models are where the value truly lies. Hardware and software must be integrated, and there is also a great deal of added value in helping manufacturers reduce costs. Taiwanese machine tool makers like Cosen have capitalized on their success in these areas to achieve a strong position in international markets.

impact on quality. By working with the University of Cincinnati's Center for Intelligent Maintenance S y stems (IMS) and performing countless cutting tests, Cosen has been able to utilize big data analysis and modularization to create models that map data features and bandsaw deterioration; the company has also performed regression analyses on

Peng Huang Vice President of Cosen

Shipbuilding, aircraft manufacturing and skyscraper construction use a bewildering variety of materials, virtually all of which require cutting technologies based on bandsaws. Before intelligent machiner y bec ame commonplace, companies needed huge teams to manage hundreds of machine tools; machining status and bandsaw wear had to be checked around the clock, while decisions on when to change saw blades were essentially judgement calls based on experience. Today, Cosen uses big data and AI to predict blade abrasion a n d p ro v i d e e a r l y w a r n i n g w h e n changes are needed, enabling machines to notify users of their requirements and make predictions themselves, giving manufacturers unparalleled advantages.

@ek\cc`^\ekXe[@eefmXk`m\ J\im`Z\jGifm`[\=Xjk#Gfn\i]lc Xe[8ZZliXk\DXZ_`e`e^ Blade lifespan management has traditionally involved a great deal of uncertainty, with factors including operational parameters, workpiece materials, workpiece shape and lubrication all affecting the rate of abrasion and making it difficult for operators to manually predict blade lifespans. Cutting quality is also affected by bandsaw wear levels and how well processing parameters are matched to the materials being cut, while different machining tasks involve different quality requirements, making it impossible to achieve true transparency in terms of the

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operators to better manage production plans, utilization reporting and tool lifespans, and the system automatically alerts the user of the need to replace any blade that is no longer in condition to meet the machining requirements, avoiding any impact on order scheduling, reducing maintenance downtime, and effectively extending blade lifespans. Cosen’s Vice President Peng Huang explained that while machines are the most powerful labor force on the planet, they also have limited lifespans, and this is particularly true for cutting tools. In the past, manufacturers depended on armies of experienced operators to look after their machines, and often waited until machines broke down to replace them. However, the specialized metal or glass materials and modules involved are expensive, so working them to the point of breakage results in considerable losses. For this reason, the Industry 4.0 transition involves managing and providing service throughout the life cycle of a product, and is effectively about integrating the whole process from demand to R&D, production, sales and servic. Industry 4.0 and the accompanying shif t to intelligent methods give equipment manufacturers the potential to greatly reduce costs and deliver a better service experience to customers.

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the nonlinear relationships between the various environmental factors involved, building saw deterioration models and self-regulating analysis and prediction algorithms that bring a new level of intelligence to bandsaw machinery. In order to address longstanding bandsaw lifespan issues, Cosen developed the Cosen Performance Cloud (CPC), a “Bandsaw Health Prediction Analysis Cloud Ser vice P latform” that incor porates fault

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analysis, advance diagnosis, automatic processing, alert notifications, and expert diagnostic systems. Each connected machine collects and uploads status data information to the cloud for analysis, so that information, including the health status of each key component, blade deterioration, processing parameter matching, and quality risks can be obtained via a mobile or PC interface, making the operating status of every machine clear and transparent. This platform allows machine owners and

Cosen created the subsidiar y Mechalogix to maximize the benefits of the Cosen Per formance Cloud and deliver the company’s intelligent cloud services, which include remote monitoring/control, recording and analysis, big data analysis, mobile services, unified messaging, webpages, bandsaw machine controllers, and cloud databases. Mechalogix is able to call upon Cosen’s 40 years of bandsaw manufacturing experience, as well as technology from a leader in the field of machine data analytics and intelligent algorithms.


Mr Huang commented that while a single machine can cost upwards of one million Taiwan dollars, and material and component costs are also considerable,

Cosen always considers the customer’s point of view, and its Industr y 4.0 hardware-software integration services help customers intelligently optimize

work scheduling so that machines automatically pay for themselves. The introduction of new technologies such as big data and cloud platforms into the manufacturing industry environment has allowed IT to lend a powerful helping hand to traditional manufacturing. In industries where machines often have lifespans of 10 to 20 years, switching to intelligent technology, while paying due attention to the characteristics of the specific industry, can reduce concerns for customers and ensure that machines continue to operate smoothly. Lastly, turning over monitoring and control tasks to the system software further automates factory management and makes production more intelligent, benefits that are of critical importance to all manufacturing industries.

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Luren Uses Intelligent Methods to Produce Precision Gear Cutters for the New Era / Luren Precision CO.,LTD. / No.1-9, Li Hsin 1st Rd., Hsinchu Science Park, Hsin-Chu, Taiwan 30078 / +886-3-578-6767 / sales@luren.com.tw / www.luren.com.tw

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Luren Precision Co., Ltd. (Luren) was founded 25 years ago and is Taiwan’s only manufacturer of gear cutters and gear machine tools. Luren’s hob cutters and shaving cutters won Taiwan Excellence Awards in 2011 for their outstanding level of precision, and the company began its involvement with intelligent manufacturing in the same year. President Shawn Sung, explained that, since joining the Hiwin Group in 2015, the company has stepped up investment in smart machinery, with the goal of providing customers with complete intelligent solutions. L u r e n’s g e a r c u t t e r p r o d u c t s are used extensively in automotive manufacturing, enabling the company to keep its finger on the pulse of the manufacturing industry. Following the German government’s launch of the Industry 4.0 policy in 2011, German car makers expressed a need for machinery with predictive diagnostic functions. In response, Hiwin started to work on a variety of smart machines, developing smart ball screw and human-machine interfaces (HMIs) that added perceptive functions and intelligent features to existing machine tools; following its acquisition, Luren became part of these R&D activities. Mr Sung explained that the machine tool industr y ’s transition to smart machinery is essentially about making it possible to see data that was previously invisible, storing and accumulating information to create big data, and then using this data to meet a variety

Shawn Sung President of Luren

of needs and achieve intelligent goals. Mr Sung continued by explaining that there are significant differences between the supply and demand sides of the market in terms of how “intelligence” is defined and understood; some machine makers therefore struggle to understand customer requirements, and users find that the completed systems do not solve their problems, or that overall system performance does not meet expectations. Mr Sung explains that it is vital that manufacturers clearly identify

the issues they need to address before introducing new systems, as this is the only way to enable system suppliers to design products that meet their needs. This is precisely why the first step in Luren’s design process is to display all the relevant parameters and information for its gear products on an HMI in a visualized, Q&A format that makes the transition to smart machinery simpler and more convenient. The second step is to connect machines to a network, which Luren does by linking previouslyunconnected machines on the

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production site to its communications platform; this allows information to be exchanged between machines, and makes it possible to operate different machines via a single platform, thereby improving production performance and efficiency. Mr Sung believes that the manufacturing revolution brought about by smart machinery will further increase demand for gears with exacting volume and accuracy requirements, while the new manufacturing system paradigm will result in even more demanding specifications; as Luren is one of only a handful of manufacturers that are able to supply the corresponding products, the company is well placed to benefit from this revolution. Taking bevel gears as an example, only two other manufacturers anywhere in the world possess the requisite technology, and Luren is the

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only one capable of creating complex workpieces with simple five-axis CNC machines. Mr Sung explained that while fiveaxis CNC machines’ ability to process complex structures with high levels

of performance make them the trend of the future, it can be challenging for machine manufacturers to achieve the necessary consistency, rigidity and speed; however, as Luren has its own inhouse R&D team, it is able to overcome such difficulties. Besides selling its own


products, Luren acquired the centuryold British machine tool maker Matrix in late 2018, and has combined its precision technology with Matrix’s brand and channels to expand the global presence of both firms. Luren will continue to invest in smart machinery R&D and assist its customers in making a smooth transition into the intelligent manufacturing era.

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LCM Offers Customized Intelligent Hydraulic Presses with Global Distribution / Lien Chieh Machinery Co., Ltd. / No.385, Sec. 2, Meishi Rd., Yangmei Dist., Taoyuan City 32658, Taiwan / +886-3-482-7176 / info@lienchieh.com / www.lienchieh.com

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Hydraulic presses are essential pieces equipment used in many industries and applications, including the shaping of a variety of everyday products. Founded in 1947, Lien Chieh Machinery (LCM) is a globally-renowned manufacturer of high-precision hydraulic presses with a history dating back 72 years. While most of LCM’s competitors focus on standardized machines, LCM is dedicated to producing customized

Jack Chuang

Nelson Wang

Vice President

Chairman of the Board

presses on a build-to-order basis. This customer-oriented philosophy has enabled the company to achieve strong growth and operate at full production capacity year after year, with customer retention rates close to 100%. Tim Wang, Vice President of LCM, explained that while the hydraulic press sector remains relatively traditional, LCM’s ser vice-based approach has facilitated impressive results in terms of both quality and innovation, enabling the company to provide customers with the most suitable products for their needs. As smart machinery has become a key trend over recent years, the company has worked with partners in government, industry and academia to create intelligent hydraulic presses. W hile intelligent technolog y is already a vital element of the industry, Mr Wang explained that Taiwanbased manufacturing companies have an amount of catching up to do in terms of the digital transitions required to switch to smart technolog y. As global manufacturing has progressed from Industr y 1.0 to Industr y 4.0, many players in Taiwan’s machine tool

Tim Wang Vice President

industry have remained at the Industry 2.0 stage; and, as Mr Wang commented, companies that do not keep pace with global trends are likely to be rendered obsolete. Mr Wang explained that previous changes did not have a revolutionary impact on the industry as a whole, with the result that Taiwan-based machine tool makers were able to rely on their existing technical capabilities. However, the all-encompassing nature of today’s fourth industrial revolution will make it extremely difficult for Taiwanese machine tool companies to keep doing business as usual. For this reason, LCM has set itself specific development targets that will enable it to take advantage of Taiwan’s government policy, resources and ICT industr y strengths to get ahead of the R&D curve, speed up the transition to smart technology, and make the company more competitive. The whole concept of smart machinery is about integrating machine tools with information and communications technology (ICT), and Taiwan has a long history of success in both these industries, both in terms

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automotive panel pressing customer in Taiwan adopt a smart machinery service solution that included purchasing new equipment and upgrading existing machines with connected functionality, smart sensors, digital multi-meters and updated PLC control programs, so that the customer’s earlier equipment investments were not wasted. LCM also uses the III’s Servbox technology to collect machine information and display it on a visualized platform, allowing the client to view intelligent analyses of production process parameters and power consumption, and helping them to optimize processes and resource usage.

of the standard of technology and the completeness of the industry chain. These strengths give Taiwan’s machine tool makers an opportunity to take an early lead in the new era, and LCM is making the most of this situation to implement its blueprint for the intelligent machinery transition. LC M ’s t r a n s i t i o n h a s f o c u s e d on developing talent and bringing in resources from academic and research institutions. The company has provided internship opportunities for students at National Taipei University of Technology (NTU T), Minghsin University of Science and Technology (MUST ) and Tungnan University

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(TNU) for many years, and has also forged fruitful partnerships with a number of research institutions. For e x a m p l e , LC M w o r k e d w i t h t h e Industrial Technology Research Institute (ITRI) to develop a Smart Machine Box (SMB) system, that allows companies to add intelligent functions to existing manufacturing systems; and is working with the Institute for Information Industry (III) to develop intelligent machines, specialized systems, and enhanced intelligent predictive diagnosis features. LCM is already making its presence felt in the smar t machine sector. In 2017, the company helped an

Mr Wang explained that LCM has invested heavily in the development of intelligent press equipment in recent years. In 2016, the company began a technical partnership with III to develop intelligent real-time monitoring and visualized energy management systems for presses; and in 2017, the company worked with MUST on the Smart Machine Talent Cultivation Program run by the Industrial Development Bureau (IDB), which is part of the Ministry of Economic Affairs (MOEA). In 2018, the company updated its enterprise resource planning (ERP) systems to integrate a variety of intelligent manufacturing information, and worked with ITRI on the IDB’s SMB mentoring program. Looking ahead, LCM will continue to invest in R&D and do everything possible to help customers turn their intelligent manufacturing visions into reality.


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Leadermac Goes Global with Innovative Intelligent Wood Planers / LEADERMAC MACHINERY CO., LTD. / No. 20, Lane 662, Sec. 1, Sha-Tien Rd., Dadu Dist, Taichung 43244, Taiwan. / +886-4-2693-7599 / sales@leadermac.com / www.leadermac.com

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While major woodworking machine manufacturers in Germany and Italy moved into digital and smart management at an earlier stage, their Taiwanese competitors are fighting back by differentiating their products with intelligent functionality. Most Taiwan-based woodworking machinery makers are SMEs, and this smaller size gives them an edge in responsiveness

and flexibility compared to larger competitors. These factors enabled Taiwan’s woodworking machiner y industry to grow by 15.8% in 2017, with total woodworking machine exports rising to US$560 million (NTD$20.8 billion), making Taiwan the fourth largest global exporter of such products. Woodworking machinery is used for a huge range of applications, including virtually all products, craftworks and building materials that involve wooden components. As Michael Chang, CEO of Leadermac explains, woodworking machinery is used to produce items as small as chopsticks and as large as furniture and flooring; other examples include the wooden sheds that are popular in Europe and North America, plank pathways, and bowling alley lanes.

Improving Quality and Output with Big Data and Intelligent Features In 2010, Leadermac began to add intelligent elements to its traditional p ro d u c t s a n d d e ve l o p i n t e l l i ge n t woodworking machinery. These new features use variable current to control production speeds and protect cutting

Michael Chang CEO of Leadermac

A World-class Manufacturer of Four-sided Planers Exporting to 60 Countries Leadermac Machinery Co., Ltd. was founded in Taichung in 1972 and is focused on the production of all types of woodworking machinery. In 1994, the brand’s entire range of foursided molders was awarded European Union CE marking certification. The company subsequently created the LMC brand, which is focused on the development of high-performance, high-precision products including 3D molders, hand-scraped flooring machines, saw notch molders, highspeed four-sided planers, and foursided planers with automatic width/ thickness capabilities. The company also possesses a number of international patents and innovative technologies that enable it to help customers achieve extensive customization, earning it considerable respect among German and Japanese manufacturers with exacting specification requirements. Leadermac has consistently achieved steady growth in a fiercely competitive market and now sells to more than 60 countries, with its specialized four-sided planers proving particularly popular.

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tools and axes. Over the last year, the company has also added Industr y 4.0-style remote monitoring/control features to its machines, making it the first Taiwanese woodworking machine maker to achieve such breakthroughs. Leadermac also uses Siemens’ MindSphere open IoT cloud platform for applications such as predictive maintenance and real-time monitoring/ control, allowing users to ascertain the status of their machinery and take appropriate fool-proofing measures from anywhere in the world. One of the key features of this platform is that it helps customers connect physical items to the digital world during the manufacturing process. This involves creating a “digital twin� that

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models the features and performance of the actual product, production line and production processes, as well as capturing and analyzing data on actual performance and utilization rates. The digital twin serves as a replica of the physical item throughout the lifecycle of the product, ensuring that accurate data is preserved, as well as facilitating

flexible modifications and adjustments to the replica, which can then be used to optimize the physical product. In addition to digitizing all the operational status data for a particular piece of equipment, the platform also enables users to remotely monitor and control machinery in real time via the cloud. If analysis shows that a component is going to fail, the user can report the issue to the machine in advance and provide maintenance advice. In this manner, problems can be discovered before components fail completely, avoiding any impact from production line stoppages, as well as protecting machines, cutting tools and other components from damage. This extends the lifespan of machines and enables huge savings on machine


purchasing and maintenance.

Delivering 30% Savings on Labor and Increasing Production Capacity by a Third The increased efficiency and quality of maintenance services made possible by remote diagnostics help optimize every aspect of manufacturing, from design and project planning to production and servicing, and this entire value chain can then be passed on to the customer. Thanks to this technology, Leadermac’s high-end machinery is able to meet the requirements of even the most demanding woodworking and furniture companies in terms o f s t re a m l i n i n g c o s t s , i n c re a s i n g production efficiency, customization, and high-variety/low-volume (HVLV ) p ro d u c t i o n . T h i s h a s e a r n e d t h e company considerable acclaim among major international manufacturers, who have used Leadermac’s intelligent woodworking equipment to save as much as 30% on labor costs and boost output by 30-40%. In this competitive market, Leadermac has proactively invested in R&D to achieve its Industry 4.0 goals and create intelligent woodworking machinery that meets the needs of high-end manufacturers, as well as differentiating its lower-end products with unusual features and excellent customer service. The company reinvests 15% of profits in R&D every year, the highest level in the industry, and also goes to great lengths to develop talent. CEO Michael Chang believes that big data analysis and management will be critical to helping manufacturers reduce costs in the future, while the digital transition and the introduction of cloud management platforms will enable greater transparency and more sophisticated data analysis; together these features will make it possible t o a c h i e ve t h e c o s t m a n a g e m e n t benefits that are the true key to staying competitive against larger international manufacturers.

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FCS Group Takes Smart Manufacturing from Individual Units to Systems and Entire Industries / FU CHUN SHIN MACHINERY MANUFACTURE CO., LTD. / No. 269, Baodong Rd., Pitou Vil., Guanmiao Dist., Tainan, Taiwan / +886-6-5950688 / fcsco@fcs.com.tw / www.fcs.com.tw/tw

Fu Chun Shin (FCS Group) is a major Taiwanese manufacturer of plastic injection molding equipment whose products are used in sectors from medical optics, which require high precision, rapid molding and cer tific ation, to c ar instr uments, interior panels and headlights, as well as everyday consumer goods, with a focus on two-color injection molding for food packaging and blow molding

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technologies and solutions. The factory roof has also been covered with solar panels that provide a total capacity of up to 2.655MWp, delivering carbon emissions equivalent to several major parks, and demonstrating FCS Group’s environmentally-friendly corporate culture – not to mention meeting the carbon balancing requirements of international buyers.

As the Industry 4.0 vision of smart manufacturing gathers momentum, finding the best way to gather and utilize data has become the key battleground for businesses. As Alan Wang, CEO at FCS, explains, the main issues for Taiwan’s injection molding industry in terms of switching to smart machinery are:


1.IT: Where to fit sensors to collect genuinely useless big data at every stage, from molds to injection molding machinery. 2.CT: As the injection molding machinery industry is less developed that the machine tool industry, it is not held back by the issue of controller brands, meaning that as long as manufacturers make the proper arrangements in an open manner, any controller can be used – so in this sense, latecomers to the field have something of an advantage. 3.OT (operational technolog y): This involves knowledge relevant to the specific domain of each industry and requires the creation of analytical models that can be used to produce meaningful comparisons, such as the pressure curves in the multi-cavity flow balance control technology developed by FCS. 4.Introducing better management and production policies, specifically the introduction of processes such as fast mold switching and standardization that shorten the time required to load and unload molds, and systematic issues such as how to use algorithms to microcontrol production parameters based on feedback signals received by the system’s controllers. In the five years since FCS began to install sensors, it has become an industry-leader in the use of data and has been striving to create solutions to the four issues outlined above. As Mr Wang explains, “If we start at the ‘point’ level by creating three or four intelligent units, the next step is to continue to replicate this to the production line, and then the industry as a whole, which of course results in the highest success rate!”. FCS Intelligent ManuFactory 4.0 (iMF 4.0), which was officially launched in June 2018, is focused on the ability to demonstrate correct molding concepts to customers in the injection molding industry, including how to use smart machines to achieve breakthroughs in production bottlenecks, reduce costs and increase efficiency; this also shortens the

also particularly suitable for factories with large amounts of production line equipment, as every stoppage or fault is automatically recorded.

trial production run phase and reduces time to market (TTM).

Superior Management from Units to Production Lines and Entire Sectors

Alan Wang repeatedly emphasizes that Industry 4.0 is not about automation, but rather about being able to gather and manage data to create greater value, reduce costs and increase

Alan Wang CEO of FCS

FCS’ fully-electric and secondgeneration servo hydraulic machines for use within factories comply with market requirements for environmental protection and energ y saving. The second-generation ser vo hydraulic machines also have precision placement features that are close to those of fullyelectric models and can be used to produce orders for very small quantities. The company also emphasizes their ability in integrate with midstream and upstream peripheral devices, and has already standardized its products with the controller interfaces for suppliers of mold temperature controllers, material feeder machines and water chiller units, enabled the relevant personnel in each department to receive synchronous data, saving huge amounts of time compared to traditional processes where a calibration technician needs to adjust the parameters of each individual machine across multiple production lines. FCS’ iMF 4.0 demonstration room also showcases how customers can use these technologies to monitor and control all overall equipment effectiveness (OEE), utilization rates and other data for units spanning multiple factor y areas. Calibration technicians only need to select a display panel in an air-conditioned room to see an overview of the current state of all faulty machines and materials, before notifying the onsite operator of the required adjustments. This method is

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efficiency. “Using onsite robots and automated devices to test products is actually a subsequent step. You can actually achieve greater benefits by starting from preliminar y molding phase.” Compared to the major European and North American manufacturers’ earlier experiences of moving i n t o I n d u s t r y 4 . 0 , Ta i w a n - b a s e d manufacturer’s also have the benefit of manufacturing execution systems (MES) developed by the IT industry. FCS’s in-depth understanding of production process features and greater focus on providing injection molding workshop solutions enable it to extract and reuse data in ways that facilitate deep, wide-ranging partnerships with MES

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manufacturers involved in production process flows. This in turn enables managers to foresee the occurrence of defective products at the mold opening stage and identify real production bottlenecks in a timely manner, so that the incidence of abnormal or defective products can be eliminated and utilization rates for materials, labor and equipment can be increased, thereby reducing unnecessary costs and waste. If the customer needs high-mix, low-volume production, FCS can write the relevant engineering issues into the system, eliminating the need for engineers to waste time on calculations and making the process so simple that virtually any staff member can perform the task of accepting orders.


Innovative Business Models Add Value and Enable a Wide Range of Applications A s p l a s t i c s a re u s e d t o c re a t e products with ever more amazing forms, equipment makers must keep up with market trends and add value to their machines in ways that help customers to reduce defective product rates and increase efficiency. If the end customer does not have the capabilities to integrate upstream, midstream and downstream materials with equipment and other advanced technical resources, FCS can also serve as a platform to facilitate the introduction of MuCell, long fiber, Industry 4.0 and other advanced manufacturing process technologies. FCS works with customers to test molds, optimize process parameters, and ensure that large-scale production is stable and efficient, even to the extent of performing proofing for customers to reduce rejects; FCS also informs customers of the ideal mold monitoring/ control range, so that the customer can avoid the expense and hassle of developing their own big data analysis team.

This also saves FCS the cost of procuring materials and testing molds itself, as well as enabling the company to obtain innovative production process knowhow that enables it to create complete solutions, as well as develop a wider range of modular features that add flexibility and value to systems, particularly in terms of the range of configurations and options available. Mr Wang believes that “What customers really want is not just equipment, but rather the capability to coordinate production processes and stable, largescale production, so that the customer only needs to be responsible for receiving orders and production management.” FCS’s new multi-cavity flow balance monitoring and control technology prevents environmental factors such as molds, raw materials and batch size from interfering with production processes and unbalancing the flow of fluids within the mold cavities. By making it possible to monitor changes in flow data and pressure curves, feed data back to the machine controllers, and use algorithms to calculate and fine-tune adjustments to control these changes, the technology creates the best possible balance and maintains stable product yield rates.

Mr Wang ’s recommendation to manufacturers is not to aim too high when first introducing Industry 4.0; instead, manufacturers should aim to first reduce the number of people re q u i re d , b e f o re m o v i n g t o w a rd s unmanned operation. The first tangible benefit to customers is the direct reduction in labor costs, but in order to succeed, it is also important to train a team that can make proper use of the technology and maintain the stability of production. Mr Wang stresses that, “Industry 4.0 is also a revolution in terms of thinking, as it requires a completely different approach from traditional production management models, and you can’t simply apply old philosophies to manage new equipment.” Today, FCS not only sells equipment and systems, but also has the capability to establish teams of 6 to 10 personnel within factories to focus on data analysis and process optimization. The company also offers customers’ technical services, including Industry 4.0 consulting, team training, and regular diagnostic analysis of production process capabilities, and can even provide basic skills education and training for customers.

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Ding Shen Brings Smart Systems to the Shoe Manufacturing Industry / Ding-Shen Mechanical Co,LTD / No.23-7, Ln. 130, Shenzhou Rd., Shengang Dist., Taichung City 429, Taiwan / +886-4-2528-9970 / taiwan@dingshen.com.tw / www.dingshen.com.tw

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Shoe manufacturing is a complex, labor-intensive business involving a huge range of materials, sizes and styles. While automation is common, production can involve as many as 300 types of machine, so the industry needs companies capable of integrating these hugely complex systems. Ding Shen (Ding Shen Machiner y Co., Ltd.), founded in 1984, was built on catering

to this demand. As company President Ching-Chung Hou explained, Taiwan is one of the world’s top shoemaking regions and makes shoes for virtually all the major brands, and Ding Shen is a key part of the system planning and integration processes for the manufacturers that serve these brands. The company ’s reach also extends overseas, with its services helping to create automated production lines in a wide range of industries. Ding Shen initially focused on conveyor belts for a wide variety of machines. In the case of the shoe manufacturing industry, the designers had to be familiar with the bewildering array of specialist machines, parts, shoe lasts, plastic injection equipment and molds that the conveyor belts need to work with. Ding Shen has many years’ experience of R&D and working closely with customers in the field. In recent years, the company has invested in smart machinery and helped customers to build intelligent manufacturing systems. Mr Hou explained that the dozens of different machines involved in shoe manufacturing need to communicate and share information, so Ding Shen has designed specialized smart shoemaking

equipment with integrated SCADA platforms that can read information from RFIDs and QR codes on shoe lasts, take readings from online sensors, and record workstation information such as manufacturing times and operator information, in order to create complete, traceable production histories. The complexity of shoe production processes makes it difficult to use standardized systems in the same way as other manufacturing sectors. Due to the length of the production lines, the variety of materials, and the sheer number of workstations involved, the industry has long been plagued by high error rates, and these issues have only been exacerbated by recent consumer market shifts to “high-mix, low-volume” (HMLV ) production, with traditional automated systems struggling to achieve sufficient yield and production efficiency. Ding Shen’s smart machine tools use production histories to track factory data and enable managers to monitor every step of the production process, reducing error rates and making capacity estimates more precise. While it takes 30-40% less time to produce shoes using automated systems than with the handmade techniques

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Ching-Chung Hou President of Ding Shen

time ( JIT) model; production can also be moved between different lines in short order, giving the system greater flexibility.

of the past, these time savings are only maximiz ed when producing large batches of the same design. As Mr Hou explained, existing forms of automation are no longer able to cope as the market moves towards HMLV production, so the switch to intelligent manufacturing

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has become essential. The architecture of Ding Shen’s smart technologies links manufacturing, warehousing and ERP systems, so that production can be scheduled based on order priority, and materials and components can be delivered to workstations on a just-in-

The development of intelligent systems would be impossible without the involvement of experts from a variety for fields. For this reason, Ding Shen works with research organizations such as the Institute for Information Industry (III), Industrial Technology Research Institute (ITRI), Precision Machinery Research & Development Center (PMC), and Metal Industries Research and Development Centre (MIRDC), and has accumulated a great deal of in-house R&D experience. The result is that Ding Shen’s smart shoemanufacturing equipment can be put into use as soon as it is delivered. The company has also created blueprints to help customers smoothly manage the Industry 4.0 transition and build strong foundations for long-term competitiveness.


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FEMCO Helps the Steel Industry Move into the Industry 4.0 Age / Far East Machinery Co., Ltd. / No.26, Chung-Shan Rd., Huo Le Village, Ming-Hsung, Chiayi City, Taiwan / +886-5-213-3166 / global@femco.com.tw / www.femco.com.tw

Yulong Zhuang Chairman of FEMCO

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Guohui Zhang Honorary Chairman of FEMCO Group


Far East Machiner y (FEMCO), one of only a handful of Taiwan-based steel product specialists, was founded over 70 years ago. The company recently introduced smart machinery into its factories, and has integrated its IT and OT systems to enable intelligent monitoring and control of machinery.

FEMCO currently has over 80% of the Taiwanese market for steel pipes over 16 inches and 60% of the sub-16-inch market, helping its workforce of nearly one thousand people to achieve annual revenues in excess of 2.5 billion Taiwan dollars (NTD $2.5 billion).

As Yulong Zhuang, President of FEMCO, explained, the FEMCO Group is made up of five main businesses that span industries including machine tools, industrial system integration, steel, engineering, and golf clubs.

As the machinery industry remains relatively traditional, most manufacturers still use partially-automated, “Industry 2.0” equipment. Spotting an opportunity, from 2014, FEMCO began to build partnerships with academic and research institutions and invest in intelligent manufacturing sector.

Steel is FEMCO’s core business, and the company is globally renowned for its independently developed ranges of steel pipes, steel sheet piles and U-shaped plate stiffeners, which are widely used in domestic and overseas civil engineering projects including roads, bridges and ports, and in the petrochemical industry.

Mr Zhuang explained that, as one of Taiwan’s flagship machine manufacturers, FEMCO is renowned for the quality of its products. While the company’s order levels remain stable, Taiwan’s declining birth rate is starting to make it harder to recruit employees, while traditional manufacturing

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in the number of experienced operators available. Mr Zhuang noted that FEMCO is starting to reap the rewards of its R&D investments, and as its smart machinery upgrades continue to prove successful, the company expects orders to more than double in 2019. In addition to upgrading its own production facilities, FEMCO is expanding into other industries with the goal of helping Taiwanese SMEs with limited resources to come together, speed up their digital transitions, and increase their competitiveness. FEMCO is also helping other manufacturers to introduce intelligent production lines, but Mr Zhuang is not concerned about the potential impact of other manufacturers’ upgrades on FEMCO’s bottom line; as he explained, Industry 4.0 will have far-reaching effects on the entire manufacturing industry, so the industry must work together to maximize its competitive advantages. L o o k i n g f o r w a r d , F EM C O w i l l continue to expand its presence in the smart machinery sector, strengthen partnerships with academic and research institutions, and work to develop products that benefit customers, as well as strengthening FEMCO’s business.

processes mean that equipment must be constantly monitored to avoid costly stoppages, as well as making it difficult to accurately predict output. FEMCO’s machine tool division partnered with professors at National Cheng Kung University (NCKU) to deal with these issues, resulting in the introduction of fully-automated virtual metrology systems that enable production processes to be upgraded from Industry 3.0 to Industry 4.0 standards. FEMCO’s intelligent technology works by deploying sensors within

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machines to gather information on vibrations and current levels generated during machining, and the information is analyzed in real time via a computer network to predict future machining results. Managers can then use the accumulated data to gain more precise control over the quantity and quality of the products, as well as to eliminate equipment failures. FEMCO also added visualized maintenance systems that enable operators to per form maintenance themselves and record the relevant data for future use, helping to offset the impact of the gradual decline


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CHUMPOWER Targets Key Sectors with Expanded Intelligent Machine Range / CHUMPOWER MACHINERY CORP. / No.688-1, Sec. 3, Zhongshan Rd., Wuri Dist., Taichung City 414, Taiwan / +886-4-2338-8289 / contact@chumpower.com / www.chumpower.com

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CHUMPOWER MACHINERY CORP. was founded 38 years ago and is chiefly known for its PET blow moulding machines, although it is also a leader in precision drill chuck technology. General Manager Bush Hsieh explained that the global shift to Industry 4.0 and the introduction of PC, ICT and networking technologies have massively expanded the possibilities for

Bush Hsieh General Manager of CHUMPOWER

the machine manufacturing industry, while machine makers are adding AIoT, IIot, device communications and intelligent features to every kind of production equipment; and as a leading manufacturer of PET blow moulding machines and precision drill chucks, CHUMPOWER is ahead of these trends. As demand for a variety of everyday goods increases, the use of PET plastic bottles continues to grow. Beverages and water are remain the largest application for PET bottles, but they are also extensively used to medicines, cosmetic, oils and other liquids package. CHUMPOWER’s PET blow moulding machines have thrived in a competitive market and enable customers to meet a wide variety of requirements. The company strives to continually improve its specialist technologies for every application, and while there are synergies and intersections between the basic technologies for different sectors, each has its own unique features, so every type of product has to be made as powerful as possible. Demand for cosmetic product bottles are also soaring, and CHUMPOWER’s expertise in machinery for the production of custom bottles leaves it well placed to capitalize

on this growth. The company’s success in such sectors further demonstrates the industry’s recognition of the company’s quality and standards. D r ill chuc ks, tool holders and spindle accessories are also mainstays of CHUMPOWER’s machine industry product range. The company acquired a variety of drill chuck technologies in its early years, and has gradually expanded their application into the machine tool and medical sectors. However, the company is currently working to refocus its products and technologies away from the manual machine tool sector and on to high-precision, highadded-value sectors, in order to provide manufacturers in the relevant industries with accessories and products that offer greater precision, stability and quality. As manufacturing industries have embraced Industr y 4.0 over recent years, CHUMPOWER has moved into intelligent products and created its own ICT department. While drill chuck accessories are mostly based o n m e c h a n i c a l t e c h n o l o g y, P E T blow moulding machine require the integration of electromechanical and electronic technologies, so that the equipment can deliver the required

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precision and intelligence, as well as differentiating itself in the market – a key competitive advantage for CHUMPOWER. CHUMPOWER’s ICT integration has enabled it to achieve spectacular success in its transition to intelligent products. The LSS8 linear PET blow moulding machine, won the Plastic Blow Molding Machine Second Prize at the Taipei International Plastics & Rubber Industry Show (TaipeiPLAS), and is the fastest such machine currently available. The company has also won “Intelligent machine awards” for its collaborations with Taiwan’s National Cheng Kung University (NCKU) on technologies including the Advanced Manufacturing Cloud of Things (AMCoT), Automatic Virtual Metrology (AVM), Intelligent Predictive Maintenance (IPM), and CH UMPOWER independentl y developed BottleViewer intelligent blow molding system. W ith regard to the company ’s strateg y for intelligent machiner y products, Bush Hsieh explained that CHUMPOWER’s core philosophy for both design and production is about helping customers to increase profit margins. Its intelligent machine products are therefore also designed from this perspective, partly because such an approach is now essential to maintain

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competitiveness. The new intelligent features enable machinery to produce exceptionally consistent products, while also reducing production times and increasing equipment lifespans. Mr Hsieh concludes by noting that,

while intelligent technology allows equipment to generate greater value, this advantage can only be achieved if the quality of the products is solid to begin with CHUMPOWER’s technology is already among the best in the business, but the company plans to further


intensify its R&D efforts and actively develop new ICT technologies that will deliver machine products with even greater quality and intelligence.

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FKI Focuses on Customizing Intelligent Industrial Machinery for Diverse Needs / Fong Kee International Machinery CO., LTD. / No. 168, Cheng Pei First Rd., Yongkang Dist., Tainan City 710, Taiwan / +886-6-2532157#123 / sales@fki.com / www.fki.com

Taiwan has been promoting its intelligent machinery industry for a number of years, including the machine tool industry in the “Golden Valley� region of central Taiwan, and the plastic and rubber machine industry cluster in the south, which is flourishing as a result of its proximity to the thriving petrochemical industry and convenient access to ports.

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The biggest difference between industrial machinery and machine tools for metal cutting/shaping is that the former is more closely connected to end consumer markets and involves a huge range of applications, making it difficult to generalize about specific development p a t h s f o r i n t e l l i g e n t m a c h i n e r y. Customization is therefore vital to modern manufacturers, as the example

of Fong Kee International Machinery Co., Ltd. (FKI) demonstrates. FKI, a plastic extrusion machinery maker based in the southern Taiwan, it has been and currently produces products including blow molding machines, film blowing machines, laminating machines, plate/board extrusion machines and co-extrusion blown film machine. 75-80% of the company ’s products


are customized, while blow molding machines are the mainstay of the firm’s business, accounting for 50% of revenue. Charles T.J Wei, General Manager and Vice President of FKI, explains that, while the extrusion machine and injection molding machine sectors are both part of the plastic molding machine industry, their ecosystems are very different. Extrusion machines use a continuous process and are primarily used to produce everyday items such as plastic bags, drums and pipes; while injection molding machines allow for greater flexibility, but must be customdesigned for specific requirements. For this reason, when FKI moved into the intelligent machinery sector, the first order of business was to enable the customization of individual machines, and then adapt the machines to market needs by gradually adding intelligent functions. “As extrusion machines have a wider range of applications than injection molding machines, the R&D costs are naturally higher, and skimping on R&D is even less of an option for a major manufacturer such as FKI. In order to survive, we need to think from the point of view of our customers and include at least one or two unique features or functions that deliver added value compared to products from small manufacturers with no R&D capabilities.” FKI has invested a great deal of time and effort in operating systems for intelligent machinery over the last years, and has built up an expert R&D team capable of continuing the development of features such as intelligent prediction and maintenance, with a new generation of machines launched every two years.

Responding to Intelligent Manufacturing Demand with Fully-electric Servo Models Earlier extrusion machinery generally consisted of relatively small and energyinefficient machines designed to produce large plastic products. Fully-

electric plastic molding machines were also limited by the lack of computer control and suitable servo systems; this meant that the costs of producing larger items such as 200L plastic drums were prohibitive, so manufacturers generally used hydraulic extrusion machines for such purposes. However, as with other industries, energy saving has become a major issue for the plastic molding industry over the last few years. This, along with the need to avoid oil leakage and pollution, has gradually made energysaving servo systems the mainstream choice, with the prices of such systems also falling by more than 30% over the last decade. FKI officially launched iBlow, its first generation of fullyelectric blow molding machines, at the 2016 Taipei International Plastics & Rubber Industry Show (Taipei PLAS), where it went on to win the annual “Aesthetics Award – All Categories” and the “Best of Show Award – Plastic Blow Molding Machine Category” in the show’s R&D and Innovative Product Competition. The new fully-electric models achieved energy savings of 52% and speed increases of 20-25% compared to traditional hydraulic machines, allowing customers in regions with high energy prices to recover costs in just two years – a saving that has enticed many customers to replace their old equipment. FKI has also added communications ports to its control systems to meet the needs of the Industry 4.0 era. The new control systems can connect

directly to standard interfaces such as Manufacturing Execution System (MES) or OLE for Process Control (OPC) to enable centralized monitoring and control of all production data and production management, including production quantity targets, product technologies, y ield statistics and operating hours, as well as facilities for data collection and analysis that are more than adequate to meet the basic requirements of intelligent factories. Customers can also use a smartphone or tablet for monitoring, control and troubleshooting, as well as measuring and analyzing the cost of processing raw materials.

Charles T.J Wei General Manager and Vice President of FKI

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into the customer’s ERP systems to enable customization, as well as making the flow of information within the customer’s factory smoother, helping to achieve the goal of lean production. One of the control systems used is Siemens PLC, which can track the end user’s machine operation behavior, a function that is of great benefit to FKI’s R&D and design capabilities.

Online Customer Service Platforms that Integrate Sales, Service and R&D While iBlow, FKI’s first generation of intelligent machines, was able to connect with customers online, sensors were required if the equipment m a n u f a c t u re r w a n t e d t o p ro v i d e FKI received a ver y positive reaction from customers at subsequent international plastic and rubber industry shows, affirming its decision to develop such models. The feedback received also encouraged the company to increase the level of mold clamping force and develop a full range of new models. With the advanced R&D program, we launched eblow, the company’s second generation of fully-electric blow molding machines, which feature significantly increased mold clamping forces of 250300 kN, as well as the ability to produce 15-30L stacked drums.

The new automated prevention and diagnosis features include energy consumption display and push notific ations, maintenance/repair advance warnings via push notifications, and troubleshooting notifications and explanations, enabling the customer to see component lifespan warnings and reduce maintenance downtime. FKI is also planning to add monitoring/control logs and GPS functions, enabling its systems to play the role of an advanced controller or a rapid response control system on the customer’s production line.

High-end Controllers Make FKI’s Intelligent Machines More Competitive

FKI has been developing automated machinery for many years and has put high-end controllers at the heart of its products by building its own platform based on control systems from B&R, with the Austrian brand even sending engineers to work at FKI’s factory and help with the machine programming and superior built-in communications functions necessary to achieve goals such as monitoring, control and advance diagnostics. The resulting products also use the same Smart Machine Box (SMB) module functions that the world’s top electronic control brands use, so that FKI machinery can actively work with customer factories if required. The SCADA control systems developed by the company can be embedded

In addition to basic Industry 4.0 features such as connections for instant data collection and remote monitoring/ control, FKI has also incorporated IIoT (Industrial Internet of Things) concepts into its products. The company h a s a d d e d S CA DA ( S u p e r v i s o r y Control and Data Acquisition) to its platforms and software to enable six key features that allow customers to further analyze data results and determine optimal production schedule: trend display, maintenance/repair warnings, production scheduling, alarm management, report form functions, and equipment connectivity.

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advance diagnostic services, and not every customer had either the ability to integrate such systems or a financial situation where doing so made sense in terms of production costs. Even more importantly, this had to be added to the aftersales service and maintenance mechanism, so that operators could p re d i c t m a c h i n e a n d c o m p o n e n t lifespans and notify customers to schedule maintenance, in order to reduce the cost of aftersales service and labor. In Charles T.J Wei’s words, “The key issue for Industry 4.0 is still how to make it easier for customers to operate equipment and reduce accidental downtime losses, as that’s the only way we can keep getting orders and enable the business to grow!”. The

company also offers different service levels based on the configuration that each customer invests in, and then provides the appropriate solutions. On one hand this gives major manufacturers with the relevant capabilities the option of analyzing and interpreting the data generated themselves; on the other hand, if a company needs advance diagnosis or maintenance but lacks the necessary skills, it can simply share the details online and receive remote video instruction for any necessary disassembly and maintenance operations, saving a great deal of time, not to mention the considerable travel costs of onsite service. Char les T.J Wei conc ludes our interview by emphasizing that “you only

really have a product if the customer is willing to get their money out and place an order”, and noting that the extrusion molding market is still dominated by traditional machines and growth in the intelligent machine market is unlikely to exceed 15% over the next decade. As over 50% of FKI’s existing models have intelligent functions, the company will focus particularly on the more profitable high-end segments of the US, Japan and China markets, but also hopes to bring these features and functions to its entire range within the next five years, as the market continues to evolve and become more specialized and specificationoriented.

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CHMER’s Intelligent Solutions Help Customers Solve Production Problems / Ching Hung Machinery & Electric Industrial Co., Ltd. / No.3 Jing Ke 1st Rd. Nantun Dist, Taichung City 408, Taiwan / +886-4-2350-9188 / overseas@mail.chmer.com / www.chmer.com

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CHMER (Ching-Hung Machinery & E l e c t r i c I n d u s t r i a l C o. , L t d . ) started out in 1975 as an electrical discharge machining (EDM) product manufacturer in 1975. Over the next four decades, the company expanded into technologies including die-sinking EDM, wire-cut EDM and fast hole drilling EDM, and has consistently focused on the non-traditional

machining sector. Unlike traditional cutting and milling processes that involve direct contact with tools, nontraditional machining uses thermal energy or chemicals to remove material, making it better suited to the machining of super-hard alloys that are problematic to cut or mill with conventional machine tools. This type of machining technology has mainly been used to create molds, but in recent years has seen increasing use in the rapidly growing aerospace, energy and medical industries. As the Industry 4.0 concept has driven rapid adoption of intelligent manufacturing methods in recent years, CHMER has developed a strategic vision for intelligent manufacturing based on the creation of an entire ecosystem. As General Manager Chen-Hong Wang explains, the first step for an equipment manufacturer like CHMER is to supply intelligent m a c h i n e r y, t h e s e c o n d s t e p i s t o integrate intelligent production into the company’s own manufacturing processes, and the third step is to help customers create intelligent production lines.

determine lifespans and maintenance schedules for every piece of equipment. This means that parts can be serviced, repaired or replaced before a machine fails, avoiding unexpected downtime and resulting production line losses; the system also allows users to s i mu l t a n e o u s l y m a n a g e mu l t i p l e machines and control entire production lines. The third stage involves building artificial intelligence (AI) into machines to help manufacturers adapt to future labor shortages caused by declining

Chen-Hong Wang General Manager of CHMER

The Three Stages of Intelligent Machinery Mr Wang explained that CHMER’s intelligent machine functions consist of three stages. The first stage is realtime monitoring and control of equipment statuses. This involves capturing operational data with builtin sensors and transmitting it to management interfaces using a variety of communication methods. This means that manufacturers are free to use their own management systems, but can also take advantage of platforms such as smartphones and tablets to instantly access data and parameters covering every aspect of the relevant machines. The second stage is predictive d i a g n o s i s . C H M E R ’s i n - h o u s e management system, which was developed in-house, lets users analyze data accumulated from real-time monitor ing/control and use it to

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technology of their own, their lack of system integration capabilities m e a n s t h a t C H M ER c a n s u p p l y them with both intelligent machines and a complete package of intelligent production hardware and software services, helping the customer to build intelligent systems that meet their needs. The third group is comprised of small machining firms, many of which are family businesses that run only a handful of machines. Such companies have no need to build entire systems, and simply need operational data and predictive maintenance functions for individual pieces of equipment. Mr Wang believes that it is vital to achieve lean production before moving into intelligent manufacturing, as it is only possible to deliver the associated e f fi c i e n c y b e n e fi t s a n d i n t e g r a t e intelligent machines into intelligent production systems if the existing production processes are strategically sound and well thought out in terms of both hardware and software.

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birth rates. Once such machines have the ability to think and learn, work can be divided more effectively between man and machine, with machines judging and hand ling fixed, yet extremely complex machining processes, freeing employees to focus on high-value tasks.

intelligent machinery, as well as allowing it to rapidly design products tailored to specific customer requirements. The fact that the company has already launched commercial intelligent machine products demonstrates the advantages of this approach.

CHMER has invested heavily in intelligent machine R&D for a number of years. In 1994, the company created Gentec Technologies with a focus on developing CNC controllers, but the subsidiary’s fifteen-strong R&D team now specializes in developing controllers for intelligent machinery. As Mr Wang explained, while most equipment manufacturers develop intelligent machine products through collaborations with external partners, CHMER opted to create its own R&D team. This gives the company control over both hardware and software, enabling it to progress more quickly and efficiently in terms of the commercialization of

M r Wa n g e x p l a i n s t h a t manufacturing customers for intelligent machinery fall into three key groups. The first operates on an ultra-large scale with hundreds or even thousands of CNC machines, and develops technologies with specialist system integration firms. This means that CHMER only needs to supply equipment with information capture capabilities and ensure that it works with the customer ’s own intelligent production systems.

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T h e s e c o n d g ro u p c o n s i s t s o f medium-sized manufacturers that have 10-20 machines. W hile such firms generally have some machining

CHMER’s philosophy is that design work for intelligent machines and intelligent production systems should start out by looking carefully at what customers want. As every manufacturer’s needs are different, intelligent machines are only valuable to the customer if they solve problems. Mr Wang believes this is one of CHMER’s main strengths, as the understanding of both hardware and software technologies made possible by the Gentec subsidiary allows CHMER to design intelligent functions tailored to individual customer requirements. Moreover, unlike most equipment makers, CHMER places equal emphasis on talent development for both IT and OT, so that its team can successfully integrate IT and OT systems. The company intends to maintain this strategy in the future and will continue to help customers put their individual visions of intelligent production into practice.


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Victor Taichung Focuses on ICT Integration for Intelligent Machine Tools / Victor Taichung Machinery Works Co., Ltd. / No. 2088, Sec. 4, Taiwan Boulevard, Xitan Dist, Taichung City 40764, Taiwan / +886-4-2359-2101 / info@mail.or.com.tw / www.or.com.tw

Chun-Sheng Lu R&D Assistant Manager of Victor Taichung

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Victor Taichung, one of Taiwan’s biggest machine tool manufacturers, has specialized in machining centers, lathes and plastic injection molding machines since it was founded in 1954, and its products are now sold in dozens of countries. As Assistant Manager of R&D Chun-Sheng Lu commented, while Industry 4.0 has recently become a hot topic in global manufacturing,

Victor Taichung actually launched its first precision machine technologies a number of years ago, while Taiwan’s strong foundations in the information and communications technology (ICT) industry enabled the company to create practical, workable, intelligent machinery that helps customer quickly realize their intelligent manufacturing vision. Victor Taichung’s powerful vertical integration capabilities differentiate it from other precision machinery makers. It is the only Taiwan-based company whose capabilities include casting, sheet metal work, machining and assembly, and the firm has extensive expertise in every step of its vertical process flows for precision machining, as well as high rates of in-house manufacturing. Victor Taichung’s capabilities in the intelligent manufacturing sector are even more impressive, and the company has participated in a number of monitoring and diagnostics R&D programs launched by the government as part of its new intelligent machinery policies. The industr ywide shift towards intelligent products is driving greater collaboration between researchers working on intelligent machines and ICT, while Taiwan’s presence in the machine tool industry is such that it is now the seventh largest producer, the fourth largest exporter, and the ninth largest consumer of such products. In recent years, the country’s machine tool industry has gradually switched focus to developing products that offer greater performance and added value, such as five-axis machining centers, multi-axis multipurpose lathes, and automated systems. Manufacturers are also leveraging Taiwan’s status as a major ICT hub to bring ICT capabilities to the machine tool sector, and the further integration of automation, IoT, big data and other technologies will only increase the global competitiveness of major players such as Taichung Victor, as well as keeping the Taiwanese industry as a whole in a strong position as it moves forward into the Industry 4.0 era.

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Victor Taichung’s involvement with ICT dates back to its introduction of monitoring and diagnostic features more than a decade ago, when the company began building monitoring and control systems for managing machines and production lines. The company went on to create a cloud-based digital factory platform to help customers implement real-time monitoring and control, utilization rate management, and cutting tool lifespan management. Victor Taichung further expanded its ICT Department in late 2017 with

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the addition of an Intelligent Software Development Department; the new department is focused on developing intelligent machines and systems, and strengthening the company’s presence in those sectors. The company began building a new intelligent factor y with NTD$3.5 billion of investment in 2014, and is set to add a further four intelligent machining production lines, as well as intelligent warehouse, transpor t and assembl y facilities, with the goal of bringing intelligent capabilities to the majority of its product line.

The Taiwanese government published intelligent machinery policies that aim to facilitate greater collaboration between industry, government and academia, and has created national working groups dedicated to this purpose. Victor Taichung is collaborating extensively with the government in this regard, and is building on its earlier strategy by activel y investing in R&D for new technologies that are not yet commerciall y mature. Companies can no longer afford to go it alone in the Industry 4.0 age, so the national working groups aim to use integration to minimize unnecessary competition between manufacturers, and maximize the real-world value of resources and technologies. In the coming years, Victor Taichung will focus on expediting its transition to intelligent products, and will work closely with the government and other Taiwanese companies to bring their shared vision for intelligent machine tools to fruition.


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Top Technology and a Global Presence Give Hiwin an Edge in Smart Machinery / Hiwin Technologies Corp. / No. 7, Jingke Rd., Taichung Precision Machinery Park, Taichung City 40852, Taiwan / +886-4-2359-4510 / business@hiwin.tw / www.hiwin.tw

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Ball screws and linear transport components are vital components of high-precision machinery, so mastering the associated technologies is an essential part of turning the smart machinery transition into a reality. Hiwin Technologies Corp. (Hiwin) has consistently focused on R&D and manufacturing for these components,

Yung-Tsai, Chuo Chairman of Hiwin

and is currently the world’s third largest supplier in the ball screw and linear transport sectors, as well as a leading supplier of industrial robotic arms. The Hiwin brand is sold in 52 countries and regions. As Hiwin’s Chairman Yung-Tsai Chuo explained, Hiwin is the numbertwo supplier in the global market for ball screws, linear transmission components and single-axis robotic arms, and the number-one supplier in the European market. Mr Chuo explained that ball s c re w s a n d l i n e a r g u i d e r a i l s a re critical components for the accurate movement of machine tools and robotic arms. While these sectors were once dominated by Japanese manufacturers, today, Hiwin is more than a match for its competitors in terms of both technology and quality. This success was partly facilitated by demand for these key components from Taiwan’s large machinery industry, and the machine tool sector in particular, while the level of value for money that Hiwin offers has also made it an affordable, high-quality choice for machine tool makers. H iw in spe n d s 4 -6 % o f an n u al revenue on R&D. The company began working with research institutions in Taiwan to develop smart machinery a

number of years ago, culminating in the launch of the world’s first smart ball screws in 2018. This product features embedded sensors designed by the company’s in-house R&D team. The sensors report a variety of operational information to the user, as well as using algorithms to predict the product ’s lifespan, enabling managers to avoid downtime caused by unexpected failures. Hiwin’s smart ball screw has already entered production, and the company is also developing smart guide rails. As part of its academic and research partnership program, Hiwin joined forces with other major Taiwanese machine tool manufacturers to create the Machine Tool Institute at the N a t i o n a l C h i n -Y i U n i v e r s i t y o f Technology (NCUT) in Taichung. The Institute has become a popular choice for aspiring Taiwanese engineers, and its fully-subscribed classes provide a

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vital source of talent for the future of Taiwanese industry. Hiwin also runs a number of academic competitions, such as the Hiwin Thesis Award and the Hiwin Robotic Arm Operation Award, which offer generous prizes to help find talented engineers and strengthen collaboration between industry and academia. The smart machiner y sector is a key battleground for machiner y manufacturers around the world, but Hiwin is able to call upon a wide range of resources from across the Hiwin Group to improve competitiveness. For example, the machinery division worked with Hiwin Mikrosystem Corp. to develop the torque motors needed for the fourth and fifth axes of the company’s five-axis CNC machines. This collaboration made Hiwin one of just three Asian companies able to supply the relevant products, as well as the only one able to mass-produce C-axis and A/C-axis rotary tables. These products are currently used by a number of major Japanese and American machiner y manufacturers. Hiwin’s global presence also gives it a significant advantage in the smart machinery sector, as offices around the world not only provide customers with local service, but also give Hiwin access

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to technical skills from many different countries. Machinery manufacturing is no longer only about selling individual machines and components; today ’s manufacturers need to think in terms of whole systems, and it is therefore essential to bring together resources and strengths from across the industry. As Yung-Tsai Chuo explained, Hiwin’s extensive in-group resources leave it ideally placed to work in this way, and the company will continue to invest in the smart industry transition going forward.


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TTGroup: Focused on Smart Machinery for the Automotive and PCB Industries / Tongtai Machine & Tool Co., Ltd. / No.3, Luke 3rd RD.,Luzhu Dist.,Kaohsiung City 82151, Taiwan / +886-7-976-1588 / tongtai@tongtai.com.tw / www.tongtai.com.tw

As the Industr y 4.0 revolution gathers pace, T TGroup ( Tongtai Machine & Tool Co., Ltd.), one of the few major machine tool manufacturers based in Southern Taiwan, has taken a different approach from its competitors in the machine tool industry cluster of Central Taiwan.

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According to figures from TTGroup, the group achieved revenues of almost NT$100 million in 2017, with machine tools accounting for 86% of the total, followed by electronics equipment with 14%. Over 50 of products are used in automotive industry applications, with the electronics industry accounting for up to 20%, and the aerospace industry

a further 5%. The company recently rebranded itself as TTGroup to help it communicate more effectively in global markets; the new branding symbolizes the consolidation of in-group resources as part of a program to vertically and horizontally integrate technolog y, experience and intelligence, with the ultimate goal of delivering greater


benefit to customers and improving operational efficiency. Jui-Hsiung Yen, General Manager of TTGroup, explained that hardware prices will continue to fall as the manufacturing industry moves for ward into the Industr y 4.0 era, making it increasingly less feasible for manufacturing companies to take the “easy money” routes of squeezing profit margins and accepting assembly orders; indeed, this path is proving increasingly problematic for even the major Japanese robot makers and systems integrators. As TTGroup has been involved with custom and specialized machiner y since the early days, it already has a s t ro n g t r a c k re c o rd i n s y s t e m s integration. Today, the company is able to provide comprehensive hardwaresof tware integration solutions for smart manufacturing, and has extensive experience of ever y aspect of the industry from presale negotiations to delivery and acceptance inspections, making the entire process simple and painless for customers.

Integrating Electronics and Inhouse Machine Tool Interfaces TTGroup began investing in PCB processing equipment for the electronics industry more than 20 years ago, and soon found that the relatively open nature of the core controller devices used in the industry made it possible to add greater functionality to its PCB drilling machines – functionality that was often requested directly by customers. Examples include internet connectivity to allow the coordination of machine management between factories in different countries, the ability for customers to download calibration data, and remote video maintenance features for equipment located in Japan and Russia, all of which have given the company a competitive edge over its major competitor in Italy. T TGroup star ted its in-house development program for controller interfaces 8 years ago, and the resulting

p ro d u c t s a re a l re a d y b e i n g u s e d to provide greater connectivity to customers in the machine tool industry. Mr. Yen notes that as the range of applications for intelligent machinery continues to expand, rather than simply adding more sensors capture data signals, manufacturers need to first evaluate whether such features are consistent with their customer’s objectives, in order to avoid increasing the risk of machine downtime.

Jui-Hsiung Yen General Manager of TTGroup

Local Production Fills Local Demand and Reduces the Impact of Trade Barriers Following its acquisition of Austria’s Anger Machining and France’s PCISCEMM over the last two years, T TGroup has consolidated its procurement and R&D programs, and benefitted from synergies between its subsidiaries’ product lines, enabling it to effectively reduce costs for ever ything from individual machines to system integration. The group has also been able to combine its sales channels, helping it to win additional orders from major automotive component makers, support regional distributors in increasing service capacity, and make the most of TTGroup’s strengths in terms of customization. The greater reach of the combined group has also enabled it to gain quicker insights into end consumer markets, particularly in terms of machining demands for the new components and structures used

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in the electric vehicle (EV ) industry, many of which involve materials that are difficult to machine; this enables the group to have solutions ready when customers need them. TTGroup has made the emerging markets of Southeast Asia a focus

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for growth, capitalizing on India’s prioritization of domestic manufacturing to move into the supply chains of Indian automotive giants. The new Indian policies are driving rapid growth in machine tool demand, with TTGroup ideally placed to leverage its expertise in planning entire production lines and

factories, as well as to supply highefficiency machines. The group used to sell through distributors, but is now working directly with local OEM firms to test the waters in terms of the low-volume vertical machining center market.


manufacturers over the last two or three decades, with the result that they now have greater production capacity than Taiwan, and by no means lag behind Taiwan in terms of automation. “Local manufacturers don't necessarily need to take the Industry 4.0 route. It’s more important to them to have advance warning and avoid defects”. In late 2017, TTGroup delivered an automatic aluminum wheelrim production line to a European carmaker’s Indonesian operation. Taiwanese manufacturers need to fully utilize their experience of applying technologies and establish deep partnerships with local customers, so that they can rapidly resolve any issues that may arise during production.

Mr. Yen explains that “factor y production line equipment markets in the emerging S outheast Asian economies are by no means limited to low-end models”. Southeast Asian manufacturers have gained a great deal of experience from working with Japanese home appliance and automotive

In order to meet the requirements o f c a r, m o t o r c y c l e a n d s c o o t e r manufacturers in Thailand, TTGroup established the Tongtai T-TAC (Tongtai Technical Application Center) in Bangkok. Tongtai T-TAC offers local customers services including machining solutions, trials, testing/verification, and technical consulting. Besides providing a comfortable environment in which customers can discuss their needs, the Center serves as a training and education hub, where the company gives advice on improvements. If a problem cannot be solved locally, the issue is rapidly referred to the head office in Taiwan. As Mr Yen explained, “These are all medium to long-term investments, and while German and Japanese machine tool manufacturers established such facilitates at an earlier stage, it is only

possible to build trust by communicating and working together with customers over the long term, and it is also vital to get customer information and solve problems as quickly as possible.” In 2018, the company also established a T-TAC Center at its subsidiary in Wuhan, China. TTGroup recently announced a partnership with Taiwanese scooter manufacturing giant Kymco (Gwang Yang Motor Co., Ltd.). The Ministry of Economic Affairs’ (MOEA) Smart Machine Tool Industry Pilot Program’s Smart Manufacturing Development Scheme for Key Scooter Components will last 2.5 years and involves R&D spending of NT$456 million; the partnership will build two production lines that can be used directly for the intelligent production of scooter engines, improving the production standards, operational efficiency and i n t e r n a t i o n a l c o m p e t i t i ve n e s s o f Taiwan’s scooter industry. The scheme includes smart production line planning, smart management systems, supply chain integration services, software development, value-added data applications, and production process optimization. The collaboration builds on the success of TTGroup’s 2018 project to help Kymco renovate and automate obsolete equipment on one of its production lines; demonstration production lines for engine casings and wheel axles are also scheduled for completion in 2019.

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:KHUHWR¿QGXV International Events

EMO Hannover

ITMA Spain

IMTS

International Manufacturing Technology Show

TECMA

Machine Tool and Peripheral Chapter Trade

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International Textile and Garment Technology Exhibition


iMTduo

Taipei Intelligent Machinery & Manufacturing Technology Show

TMTS

METALLOOBRABOTKA

Taiwan International Machine Tool Show

Taipei Automation

Taipei International Industrial Automation Exhibition

TIMTOS

Taipei International Machine Tool Show

JIMTOF Mta Vietnam

Japan International Machine Tool Fair

International Precision Engineering, Machine Tools and Metalworking Exhibition & Conference

METALEX

International Machine Tool and Metalworking Technologies Trade Exhibition and Conference

Manufacturing Indonesia

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TAITRA Overseas Offices EUROPE Bulgaria

Taiwan Trade Center, Sofia T: 359-2-4899736 E: sofia@taitra.org.tw

France

Taiwan Trade Center, Paris T: 33-1-56895300 E: paris@taitra.org.tw

Germany

❶ Taiwan Trade Center, Düesseldorf T: 49-211-78180 E: dsdf@taitra.org.tw

❷ Taiwan Trade Center, München T: 49-89-5126710 E: munich@taitra.org.tw

Italy

Taiwan Trade Center, Milano T: 39-02-20241008 E: milan@taitra.org.tw

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Hungary

Russian Federation

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T: 7-495-2342988 E: moscow@taitra.org.tw

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NORTH AMERICA Canada

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❶ Taiwan Trade Center, Miami

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T: 1-312-8197350 E-mail: chicago@taitra.org.tw

❹ Taiwan Trade Center, New York T: 1-212-9041677 E: newyork@taitra.org.tw

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Taiwan Trade Centre, London


AFRICA Algeria

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Egypt

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Kenya

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Nigeria

Taiwan Trade Centre, Lagos T: 234-806-2875420 E: lagos@taitra.org.tw

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Taiwan Trade Center, Johannesburg T: 27-11-2682006 E: johannesburg@taitra.org.tw

Sri Lanka Colombo

T: 94-112-525522 E:

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Bangladesh

Taiwan Trade Center, Dhaka T: 880-2-8412290 E: dhaka@taitra.org.tw

China

❶ Taiwan Trade Center, Beijing T: 86-10-65055801 E: beijing@taitra.org.tw

❷ Taiwan Trade Center, Shanghai T: 86-21-63877250 E: shanghai@taitra.org.tw

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Hong Kong

MID-EAST

Taipei Trade Centre Hong Kong T: 852-28243211 E: hongkong@taitra.org.tw

Iran

India

T: 98-21-88794243 E: tehran@taitra.org.tw

T: 91-44-30063616 E: chennai@taitra.org.tw

Taiwan Trade Center, Tehran

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Taiwan Trade Center, Kuwait T: 965-2226-1971 E: kuwait@taitra.org.tw

United Arab Emirates Taiwan Trade Centre, Dubai

❶ Taipei World Trade Center, Chennai

❷ Taiwan Trade Center, Mumbai T: 91-22-22163074 E: mumbai@taitra.org.tw

❸ Taipei World Trade Center, Kolkata T: 91-33-40042796 E: kolkata@taitra.org.tw

❹ Taipei World Trade Center, New Delhi

T: 971-4-3967814 E: dubai@taitra.org.tw

T: 91-11-40824300 E:

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Indonesia

T: 7-727-2777848 E:

T: 62-21-5741102 E: jakarta@taitra.org.tw

Almaty

Taiwan Trade Center, Jakarta

Japan

❶ Taiwan Trade Center Tokyo Office T: 81-3-3514-4700 E: tokyo@taitra.org.tw

❷ Taiwan Trade Center Osaka Office T: 81-6-66149700 E: osaka@taitra.org.tw

❸ Taiwan Trade Center Fukuoka Office T: 81-92-4727461 E: fukuoka@taitra.org.tw

Kazakhstan

Taiwan Trade Center, Almaty T: 7-727-2777848 E: almaty@taitra.org.tw

Korea

Taiwan Trade Center, Seoul T: 82-2-37898722 E: seoul@taitra.org.tw

Malaysia

Taiwan Trade Center, Kuala Lumpur T: 60-3-20312388 E: KL@taitra.org.tw

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Taiwan Trade Center, Yangon T: 95-1-8603461 E: yangon@taitra.org.tw

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Taiwan Trade Center, Singapore

OCEANIA

T: 65-62350369 E: singapore@taitra.org.tw

Taiwan Trade Center, Sydney

Singapore

Thailand

Taiwan Trade Center, Bangkok T: 66-2-6514470 E: bangkok@taitra.co.th

Vietnam

Taiwan Trade Center, Ho Chi Minh City T: 84-28-39390837 E: hcmcity@taitra.org.tw

Kazakhstan Almaty

T: 7-727-2777848 E:

Myanmar Yangon

T: 95-1-8603461 E:

Australia

T: 61-2-92794811 E:


MOEA Overseas Offices Mexico Dominican Republic

Canada

Israel

Economic Division, Taipei Economic and Cultural Office in Canada

Economic Division, Taipei Economic and Cultural Office in Tel-Aviv

T: 1-613-231-5025 E: canada@moea.gov.tw

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T: 972-3-6074789~91 E: israel@moea.gov.tw

Colombia

Jordan

OOOOOOOOOOOOO T: 1-415-362-7680 E: sf@moea.gov.tw

United States

❶ Economic Division, Taipei Economic and Cultural Representative Office in the United States T: 1-202-686-6400 E: usa@moea.gov.tw

❷ Economic Division, Taipei Economic and Cultural Office in Los Angeles

Guatemala

Oficina del Consejero Económico de la Embajada de la República de China en Guatemala T: 502-23390708 E: guatemala@moea.gov.tw

Honduras

Oficina del Consejero Económico, Embajada de la República de China

Chile

Economic Division, Commercial Office of the Republic of China (Taiwan), Amman,Jordan

Economic Division, Taipei Economic and Cultural Office in Chile T: 56-2-23629772 E: chile@moea.gov.tw

T: 962-6-554-4426 E: jordan@ Peru

Saudi Arabia

Argentina

División Económica, Oficina Comercial y Cultural de Taipei en la República Argentina T: 54-11-52182600 E: argentina@speedy.com.ar

Economic Division, Taipei Economic and Cultural Representative Office in the Kingdom of Saudi Arabia Paraguay

T: 966-11-4881900 E: saudiarabia@moea.gov.tw

T: 1-213-380-3644 E: losangeles@moea.gov.tw

T: 504-2239-4723~5 E: honduras@hotmail.com

❸ Economic Division, Taipei Economic and Cultural Office in Chicago

Nicaragua

Peru

T: 505-22771333 E: nicaragua@moea.gov.tw

T: 51-1-4378323 E: peru@moea.gov.tw

Mexico

Colombia

T: 52-55-52510922 El: mexico@moea.gov.tw

T: 57-1-6351138 E: colombia@moea.gov.tw

Paraguay

Brasil

Divisao Economica, Escritorio Economico e Cultural de Taipei no Brasil

Economic Counsellor Office, Embassy of Republic of China (Taiwan) in the Kingdom of Eswatini

T: 595-21-225117 E: paraguay@moea.gov.tw

T: 55-61-33640221#224 E: brasil@uol.com.br

T: 002-268-2404-2379 E: swazilan@moea.gov.tw

T: 1-312-616-0120 E: chicago@moea.gov.tw

❹ Economic Division, Taipei Economic and Cultural Office in Houston T: 1-713-961-9794 E: houston@moea.gov.tw

❺ Economic Division, Taipei Economic and Cultural Office in Atlanta T: 1-404-892-5095#841 E: atlanta@moea.gov.tw

❼ Investment and Trade Office, Taipei Economic and Cultural Representative Office in the United States T: 1-212-317-7397 E: newyork@moea.gov.tw

Oficina del Consejero Económico, Embajada de la República de China

División Económica, Oficina Económica y Cultural de Taipei en Mexico

Oficina del Consejero Económico, Embajada de la República de China

División Económica de La Oficina Económica y Cutlural de Taipei

División Económica, Oficina Comercial de Taipei en Colombia

Nigeria

Economic Division, the Trade Mission of the ROC (Taiwan),Lagos,Federal Republic of Nigeria T: 234-81-6051-5813 E: ngecon@moea.gov.tw

South Africa

Economic Division, Taipei Liaison Office in the Republic of South Africa T: 27-11-4428880 E: southafrica@moea.gov.tw

Kingdom of Eswatini

South Africa


Sweden Hungary Finland Czech Denmark

Japan

Russia

Netherlands

❶ Economic Division, Taipei Economic and Cultural Representative Office in Japan T: 81-3-3280-7880 E: economy@moea.gov.tw

Poland

Switzerland

❷ Economic Division, Taipei Economic and Cultural Office in Osaka T: 81-6-6227-8623 E: osa@moea.gov.tw

Korea

Turkey

Economic Division, Taipei Mission in Korea

Austria

T: 82-2-732-9871~2 E: korea@moea.gov.tw

Thailand

Economic Division Taipei Economic and Cultural Office in Thailand T: 66-2-6700-200#360 E: thailand@moea.gov.tw

India

Taipei Economic and Cultural Center in India, Economic Division T: 91-11-4607-7777 E: india@moea.gov.tw

Myanmar T

T: 002-95-1-527-249 E: tecoecon.mm@gmail.com

Malaysia

Economic Division, Taipei Economic and Cultural Office in Malaysia T: 60-3-2162-0021 E: malaysia@moea.gov.tw

Indonesia

Economic Division, Taipei Economic and Trade Office Indonesia T: 62-21-515-3939 E: indonesia@moea.gov.tw

Philippines

Economic Division, Taipei Economic & Cultural Office in the Philippines T: 63-2-887-6688 E: philippines@moea.gov.tw

Singapore

Economic Division, Taipei Representative Office in Singapore T: 65-6500-0100 E: Singapore@moea.gov.tw

Greece

Hong Kong Vietnam

Far East Trade Service Inc., Hong Kong Branch Office

Germany

Netherlands

Turkey

T: 49-30-20361300 E: germany@moea.gov.tw

T: 31-70-3469552 E: netherlands@moea.gov.tw

T: 90-312-4469604 E: turkey@moea.gov.tw

T: 61-2-6120-2032 E: australia@moea.gov.tw

❷ Economic Division, Frankfurt/M Office, Taipei Representative Office in the Federal Republic of Germany

Denmark

Russia

Vietnam

T: 49-69-745722 E: frankfurt@moea.gov.tw

T: 852-2525-1647 E: hongkong@moea.gov.tw

Australia

Economic Division, Taipei Economic and Cultural Office in Australia

❶ Economic Division, Taipei Economic and Cultural Office in Hanoi, Vietnam T: 84-4-3833-5510~05#8124 E: vietnam@moea.gov.tw

❷ Commercial Division, Taipei Economic and Cultural Office in Ho Chi Minh City, Vietnam T: 84-8-3834-9196 E: hochiminh@moea.gov.tw

New Zealand

❶ Economic Division, Taipei Representative Office in the Federal Republic of Germany

United Kingdom

Economic Division, Taipei Representative Office in the United Kingdom T: 44-20-78391866 E: london@ecotro.org.uk

Belgium

Economic Division, Taipei Representative Office in the EU and Belgium

Economic Division, Taipei Economic & Cultural Office in New Zealand

T: 32-2-287-2800 E: belgium@moea.gov.tw

T: 64-4-4736-474 E: tecowec@taipei.org.nz

France

Bureau de Représentation de Taipei en France T: 33-01-5689-8100 E: france@moea.gov.tw

Italy

Office Rappresentanza Di Taipei in Italy ( UKTT ) T: 39-06-98262800 E: italy@moea.gov.tw

Switzerland

Délégation Culturelle et économique de Taipei T: 41-31-3522715 E: switzerland@moea.gov.tw

Economic Division, Taipei Representative Office in the Netherlands

Economic Division, Taipei Representative Office in Denmark T: 45-33123505 E: denmark@moea.gov.tw

Greece

Economic Division, Taipei Representative Office in Greece T: 30-210-6776750 E: greece@moea.gov.tw

Spain

División Económica, Oficina Económica y Cultural de Taipei en España T: 34-91-5701986 E: esspain@moea.gov.tw

Hungary

Economic Division, Taipei Representative Office in Hungary T: 36-1-266-5154 E: hungary@moea.gov.tw

Poland

Economic Division, Taipei Economic and Cultural Office T: 48-22-2130072 E: ecodiv@moea.gov.tw

Economic Division, Taipei Economic and Cultural Mission in Ankara

Economic Division, Representative Office in Moscow for the Taipei-Moscow Economic and Cultural Coordination Commission T: 7-495-9563786#11,#13,#16 E: russia@moea.gov.tw

Czech

Economic Division, Taipei Economic and Cultural Office in the Czech Republic T: 420-233322415 E: czech@moea.gov.tw

Austria

Economic Division, Taipei Economic and Cultural Office in Austria T: 43-1-513-193311 E: austria@moea.gov.tw

Slovakia Republic

Economic Division, Taipei Representative Office in Bratislava, Slovakia Republic T: 421-2-5825-3228 E: slovakia@moea.gov.tw

Sweden

Economic Division, Taipei mission in Sweden T: 46-8-348-737 E: sweden@moea.gov.tw


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