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