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IDA Welds Taiwan's Metal Industry into Digital Age

2024/09/19 | By Andrew Hsu

To accelerate the digital transformation of Taiwan's industries, the Industrial Development Administration (IDA) of the Ministry of Economic Affairs (MOEA) is actively promoting a comprehensive range of support resources. This year, IDA organized 17 plumbing and surface treatment manufacturers to establish a unified data format, successfully integrating production orders within the supply chain. This initiative significantly enhances supply chain resilience and competitiveness, fostering an ecosystem of shared prosperity for the metals industry.

Taiwan's metal industry benefits from a clearly defined division of labor across its supply chain, supported by a well-established upstream, midstream, and downstream processing system along with top-notch production capabilities. In an increasingly competitive global market, the transformation of individual enterprises alone is insufficient; collaboration within industry clusters is essential for adapting to market shifts. In response, IDA has not only guided the mechanical and electrical metal sectors through their digital transformation journey on an individual basis but has also spearheaded cross-industry collaboration among upstream and downstream enterprises in Changhua's plumbing and surface treatment clusters. By adopting a standardized digital data format, these companies now share a common "language," enabling real-time transmission of production information across the supply chain. This streamlining shortens product cycles, bolsters supply chain resilience, and promotes mutual growth within the industrial sector.

The IDA and the Industrial Technology Research Institute (ITRI) recently hosted the “113th Metal Industry Communal Ecosystem Achievement Presentation.” The event attracted nearly 200 representatives from government, academia, research institutions, and metal-related industries, underscoring the collective focus on elevating the sector. The presentation highlighted the tangible benefits of digital transformation, demonstrating how it not only strengthens supply chain resilience but also sharpens Taiwan’s competitive edge in the international market. By sharing these success stories, IDA hopes to inspire more practitioners in the metal industry to embrace transformation. The government’s one-stop resource service aims to help businesses quickly achieve dual objectives: digital transformation and green initiatives, ultimately positioning Taiwan's metal electromechanical industry as a key player in the global green production supply chain.

Lu Wen-Tsan, Section Director at IDA, noted that the agency encourages large enterprises to drive digital transformation in smaller companies, using a "lead the small with the big" strategy. He emphasized that the success of the plumbing industry cluster should inspire more metal companies to pursue digital transformation. Going forward, IDA plans to further support small and medium-sized enterprises (SMEs) by cultivating talent capable of applying AI to optimize production processes. By equipping SMEs with the ability to analyze and manage production data using AI tools, the goal is to enhance the digital competencies of the entire sector and contribute to the ongoing modernization and sustainability of Taiwan's metal industry.