The Five Industries for
Revitalizing Taiwan's Economy
Dr. Sam C. Shen
Industry Development Bureau(IDB)
Ministry of Economic Affairs
Oct. 21st, 2016
The 14th Taiwan-Poland
Joint Business Council Meeting
1
Contents
Future Industrial Policies and Promotion
Strategies
Development Strategies and Technological
Innovations
Industry Upgrading and Transformation
Conclusions
2
Taiwan has over 80% ICT service
penetration rate & Internet usage rate
Taiwan's ICT hardware market
share ranks World No. 1
Source: Directorate General of Budget, Executive Yuan,
Dept. of Statistics, MOI, NCC, compiled by MIC, Oct. 2016
* PPP= Purchasing Power Parity
Land Area - 36,193KM2
Population - 23.50 million
Household- 8.44 million
Per capita income
-USD 23,040 (GNP)
-USD 39,600 (PPP*)
Taiwan: The major procurement center for
global ICT buyers and solution partners
3
Taiwan: The winners of ITS World Congress Hall of Fame
Industry Award for two consecutive years(2015 and 2016)!
More than ICT product manufacturing…
ITS: Intelligent Transport Systems
Smart Railway Services System
Electronic Toll Collection(ETC)
4
Future Industrial Policies and
Promotion Strategies
5
3 Key Areas, 5 Innovative Industries
Foresight the world
critical Issues
Seeking best solutions with
innovative technologies
Innovation-driven
Competitiveness
Asian ‧Silicon Valley
Five Innovative
Industries
Three KeyAreas
The government is bound to drive economic growth with innovation,
smarten up Taiwan's industry with transformation strategies and build new
economic development models
Future Industry:
Smarter Taiwan
IoT and Big Data applications
Smart production
Life Industry:
Quality Improvement
New
agriculture
industry
Tourism,
leisure
industry
Health care
industry
Oceania
industry
Green Industry:Non-nuclear Nation
Smart Grid
Renewable
energy
Petrochemical
industry
transformation
Taoyuan will
host the
Valley
Smart
Machinery
Taichung will be Taiwan's machinery center
Green Energy
Tainan will become Taiwan's green energy center
Biotech &
Medical Care
Nangang (Taipei), Northern Hsinchu and Tainan will be major hubs
National Defense
3 cities' main roles:• Taipei:
cybersecurity• Taichung:
aerospace• Kaohsiung:
shipbuilding
6
Connecting to the Future, Global and Local
to Help the Industry Transforming
Connecting the Future is to seek next
generation development trends for the industry
and initiate a foresight and innovation
program based on Taiwan's underlying
conditions and comparative advantages.
Connecting the Global is to cross-reference
Taiwan with advanced countries such as the
United States, Germany, Switzerland, and
Japan based on planned strategic industries.
Connecting the Local is to connect all
innovation R&D bases to make cross-regional
innovation and integration a reality; Taiwan's
local industries can provide the best before
going global
連結
未來
連結
全球
連結
在地
7
Connecting Local
Connecting to local industries for the benefits of clustering
Connecting Global
Connecting with advanced countries
Connecting the Future
Seeking next-generation
development trends for
the industry
Biotech & Medical Care
Asian ‧ Silicon Valley; IOT
Smart Machinery
Green Energy
Aerospace, shipbuilding
The Promotion Strategies
8
Development Strategies and
Technological Innovations
9
Development Strategies of Green Energy Industry
With renewable energy R&D, Taiwan focuses on mature industries (Solar energy, biomass)
and those with high potential (offshore wind, ocean and geothermal energy)
With the presence of ICT technologies, developing smart energy management system and
enhancing energy efficiency has become one of key focal areas of green technology
Main
Products/
Apps
Major
Technical
Needs
Green Energy Industry
Energy
Generation(Renewable Energy)
Energy Storage(Batteries)
Energy Saving
ICT
• Smart meter
• Automated demand response and
control technology
• Cloud energy management platform
• Smart energy management system
• Smart system integration
Renewable
energy
•Solar photovoltaic•Biomass •Ocean energy•Offshore wind energy•Geothermal energy
Battery
•High performance
lithium-sulfur
batteries
•Fuel cell
technologies
Source: MIC, June 2016
10
Technical Needs for Asian.Silicon Valley
Health Care
• Video transmission system
• Clinical decision system
• Remote/mobile health care
system
ICT
• Sensing
Components• Network Comm. • Big Data Analytics • Cloud Computing
Future Auto
• ADAS
• Personal
information and
service system
i-Robot
• Recognition computing
system
• Human-computer
interaction
To make innovation-driven economic development a reality. Sensing technologies,
networking communications, big data analytics are seen as foundation to foster all
kinds of integrated systems and services based on different scenarios
Smart Logistics
• Warehouse mgt.
systems
• Fleet management
system
Main
Products/
Apps
Main
Technical
Needs
Asian.Silicon Valley Program
Smart
LogisticsFuture
Auto
Health
Carei-Robot
Smart
City
Source: MIC, June 2016
11
Technical Needs of Biotech & Medi-Care Industry
With a large National health insurance research database, Big Data analytics can
be conducted to develop customization medical services and pharmaceuticals
Biotech and Medical Care Industry
Pharmaceutical Medical Equipment Biotech
ICT
• Big Data analytics
• Medical imaging,
wearables
(biosensing), medical
laser
• Medical
communications,
information security
Biotechnology
• Radio drugs, target drugs,
protein drugs, collagen
scaffold, botanical
medicine
• Molecular diagnosis;
immunoassays
• Tissue regenerating
Machinery
• Precision
machinery
(minimal
invasive surgery
medical
equipment )
Materials
• Medical
Functional
Fiber
• Medical
Composition
Source: MIC, June 2016
Main
Products/
Apps
Main
Technical
Needs
12
Technical Needs of Smart Machinery Industry
CPS (Cyber Physical System) covers sensing, communications, computing,
controlling and driving technologies to make smart machinery a reality, with
the support of data analysis technology
Smart Machinery Industry
National Defense(Aerospace,
shipbuilding)
Intelligence Service Robot
ICT Equipment(eg.
Semiconductor)
ICT
• Big Data analytics, AI
• Sensing technology, machine
vision
• Industrial communications,
information security
• Digital design, software simulation
Machinery
• High efficiency motor, speed
reducer
• Controlling and driving
technologies
• Electricity engineering
integration
• Dedicated mfg. system
Materials
• High value metal
materials
Medical Equipment
Source: MIC, June 2016
Main
Products/A
pps
Main
Technical
Needs
13
Technological Needs of
the National Defense Industry
National defense application technologies are superior and interoperable
with some industrial and consumption applications listed above
National Defense Industry
Aerospace(Drone)
Shipbuilding(Submarine)
Information
Security
ICT
• Info.: information security protection and monitoring, encrypted software
•Comm. : Satellite communications, UHF hopping wireless technology, drone controller, torpedo sonar technology
•Electronics: phased-array radar,search/tracking radars
•Optoelectronics: advanced laser, Infrared detection, optical periscope
Machine
• Turbo
engine,
rotary
engine
• Flow field
simulation
Material
• High value
metallurgical
materials
• High value
composite
materials
• Fine carbon
materials
• Stealth
materials
Energy
• Environment
protection
energy
• Electricity
storage
system
Source: MIC, June 2016
Main
Products/A
pps
Main
Technical
Needs
14
Industry Upgrading and
Transformation
15
• Increasing shipment share of
IoT semi-turnkey and sub-
system solutions to fast
respond to needs of the
industry with high variety, small
volume with fast customization
and software/hardware
integration capabilities.
Faster Production
Technology
Differentiator
•Coupled with hardware mfg.
strength, system integration and
advanced data analysis
capabilities are consolidated to
empower intelligent products
with smarter services at a
relatively fast speed.
Forging alliance and
cooperation with multinational
companies to boost the level
of localization and R&D of
their products
IOT Opening Up New Era of Economic Growth
Product Localization
IOT: Internet of Things
16
Health Care, Manufacturing, Energy, Information Security
are the current areas of focus in Taiwan
Future Industry: to create
smarter Taiwan
IOT and Big Data apps
i-production
Green Industry: Non-
nuclear nation
Green grid
Renewable energy
Petrochem transformation
Life Industry: quality
enhancement
New agricultural
industry
Tourism and leisure
industry
Health care
industry
Ocean industry
Taiwan's Key Areas of Focus
Aging population; low birth rates Rise of emerging
economies
High frequencies of Information security
accidents
Cross-regional, Technology Integration
Natural Resources Efficiency Enhancement
Natural disasters; manmade disasters
Environmental Production & Agile Mfg.
Global Key Trends
Health Care Smart Mfg. Green Energy Data Security
Health care, smart manufacturing, energy management, renewable energy, and
information security are areas that Taiwan government has determined to strive
against challenges associated with aging population, low birth rates, and high
environment protection.
Source: MIC, June 2016
17
Reinforced ICT Strength to Propel
Multi-disciplinary Cooperation
Taiwan ICT, the driving force behind these five innovative industries, should be further
developed to meet the growing demand from abovementioned applications
Enhancing multidisciplinary cooperation and developing more user demand-based
products/services are beneficial to the development of turnkey industrial solutions
Smart Machinery
• Big Data analytics, AI
• Sensing technology, machine
vision
• Industrial communications,
information security
• Digital design, software simulation
National Defense
• Info.: information security
protection and monitoring,
encrypted software
• Comm. : Satellite communications,
UHF hopping wireless technology,
drone controller, torpedo sonar
technology
• Electronics: phased-array radar,
search/tracking radars
• Optoelectronics: advanced laser,
Infrared detection, optical periscope
Biotechnology and
Medical Care
• Big Data analytics
• Medical imaging, wearables
(biosensing), medical laser
• Medical communications,
information security
Asian Silicon Valley
• Smart Logistics: warehouse
management system, fleet
management system
• Future Car: ADAS
• Health Care: remote health care
system, clinical decision system
• Intelligent Robot: Cognitive and
Computing Robots; HMI (Human-
Machine Interactions)
Green Energy
• Smart meter
• Automated demand
response and control
technology
• Cloud energy management
platform
• Smart energy management
system
• Smart system integration
Taiwan ICTSensor, communications,
cloud computing, Big Data
analytics, information
security
Source: MIC, June 2016
18
Build Strength on Strength
Industrial Networking
Solutions-Switch, router storage….Programmable
controller
-Energy module,
memories, CPU…
Medical Apparatus-Ultrasound, NMR, CT
Mobile Medical Care-Portable e-medical
records
-Portable ultrasound
componentsTelemedicine-Smart connected ECG
sensors
-Smart connected video
diagnostic components
Energy Storage-Energy management system
-MCU
-Converter/Current regulator
Energy Generation-PV Inverter
-ADC/DAC
-Power semiconductor
Internet of Vehicles (IOV)-MCU/sensing IC
-High power unit
-Connected
technologies
-Analog IC
IOT-High-end application
processor/MCU
-High-speed
transmission IC
-Next generation
memory
-IOT IC
Smart City-Environment sensing IC-Wired/wirelessnetworking IC
Machine vision system
-DSP, Camera Module…
Industrial Robots-Controller- Sensing and
communication modules
-IPC…
Integrated, energy saving smart system- Home converted motor
controller
- Smart meter and smart grid
- Smart home equipment
Home Health Care-Body temp. /blood
pressure/blood sugar
sensors and controller
ICs
Source: MIC, June 2016
Asian .
Silicon ValleySmart Machinery
Medical Care Green Energy
National Defense
Sensing System-Temp. pressure, timer,
speedometer, optical
Defense System-controlling, positioning
and video processing
unitsAerospace System- Aviation MCU and positioning
unit…
Electronic SystemSignal processing unit…
Comm. System-Safety communications; high spectrum power transmission system
Semi-
conductor
19
Conclusions
20
Taiwan is focusing on five innovative industries across three areas to help Taiwan get connected to the future, global and local.
Professional
Talent Pool
Financial FundingLaw and Regulation
Innovation
Field Test
Conclusions
21
Innovation
Environment
Technology
Differentiator
Industry
Revitalization
Increase
Employment
Regional
Balance
Connecting the future, global and local
22
Thank You感謝聆聽