Page 12 - SmartMachinery

Transformation of R&D results through
2
supply chain collaboration

Taiwan is the world's seventh largest producer and fifth largest exporter of
machine tools. Taiwan has complete industrial clusters and supply chains, and
has all of the equipment or systems for machine tools, robotic arms/robots, smart
factories, and industrial IoT. Taiwan's advantages in its machinery industry is also
exemplified in the rapid response provided by machinery companies for assisting
the establishment of the "national face mask team" which effectively controlled
the spread of the COVID-19 epidemic. Furthermore, Taiwan's machinery industry
has detailed division of labor with the flexibility to meet customers' requirements.
The abovementioned industrial foundation will benefit foreign companies in
establishing R&D or production sites in Taiwan, rapidly transforming R&D results
into products.

Exploration of the continuously
3
growing smart machinery market

Industry 4.0 has become a global trend. The trade war between the United
States and China has also compelled companies to readjust production capacity
plans and the supply chains that were previously concentrated in a handful
of production sites have gradually become more regional and dispersed. This
trend is expected to encourage manufacturers in all areas to increase vertical
integration, automation, and demand for smart machinery applications such as
robotics. The COVID-19 epidemic has also increased the demand for service
robots in the cleaning and healthcare sectors. Foreign companies can seize
business opportunities of Taiwan's smart machinery industry through investment
in Taiwan, and further expand into the future regional/global market.

10