cens logo

Taiwan Cabinet to Spend NT$36 Bn. on Productivity 4.0 Project

Aug 13, 2015 | By Ken Liu

Taiwan's Cabinet plans budget about NT$36 billion for the "Productivity 4.0" project. Taiwan's Cabinet plans budget about NT$36 billion for the "Productivity 4.0" project.
The Taiwan Cabinet or its executive ministry plans to spend roughly NT$36 billion (US$1.16 billion) over the next nine years on its “Productivity 4.0” project beginning this year, with the aim of boosting the island's total industrial revenue and helping 50,000 local manufacturers transform themselves to meet 4.0 standards.

The project aims to boost per-capita productivity of the island's manufacturing industry to NT$10 million (US$322,580) from the current NT$6.11 million, per-capita productivity of the island's commercial industry by 40 percent to NT$2.3 million (US$74,193), and per-capita productivity of the agricultural industry by 40 percent to NT$2 million (US$64,516).

Also, the project aims to elevate energy-related productivity by a quarter and attract around NT$250 billion (US$8.06 billion) of investment from the private sector.

“Productivity 4.0” project, an automation plan that emulates the "Industrie 4.0" version of Germany, involves building smart factories that use digital technologies including the Internet, big data and robots to carry out mass production of diversified products.

Although Taiwan's “Productivity 4.0” project is modeled after the “Industrie 4.0”, the former covers manufacturing, agricultural and service industries to include two more industries than the German's.

In the initial stage, the Taiwan project's manufacturing industry category includes the eight sectors of electronics & information technology, metal & transportation, mechanical equipment, foods, and textile. The service industry category comprises retail and logistics.

The Ministry of Economic Affairs (MOEA) officials justify including the retail and logistics sectors by stating that the former alone accounts for around 27 percent of the gross domestic product (GDP) generated by the island's service industries, while retail operations are inseparable from logistics.

According to M.J. Wu, Director General of the Industrial Development Bureau (IDB) of the MOEA, who is in charge of mapping out the project, due to limited governmental resources, the “Productivity 4.0” project will first finance manufacturers that are seen as traditional and staple as well as small and medium-sized enterprises that are already equipped with basic information-technology (IT) and automation systems for production, leaving relatively bigger enterprises to fend for themselves or to depend on independent funding, adding that big enterprises will also benefit from such project when the 4.0 ecosystem will have been completed.

Wu points out that currently Taiwan's 4.0 landscape calls for system-integrated manufacturers equipped with international competitiveness, crucial technologies such as sensor chips and algorithm technologies, rational business model, and total solutions, which inadvertently implies that the project can only work with relatively advanced, IT-savvy enterprises, who may not need governmental help as much as the smaller, less-well equipped counterparts.

He stresses that the “Productivity 4.0” project is by no means designed to replace manual labor with robots, instead to help them boost productivity. For instance, Siemens' factory in Amberg has raised output by seven folds after deploying the “Industrie 4.0” automation project without cutting jobs.

Originally, the Cabinet planned to implement the project in 2016. However, the weak macro economy, with Taiwan's exports having dipped continually in recent months, has prompted its decision to push forward the implementation date to this year. The project will run through 2024, one year earlier than mainland Chinese version of Industry 4.0.

China will spend at least an estimated RMB 8 trillion (US$1.3 trillion) over the next few years to modernize its industries including information-communications technology, computer numerical control (CNC) machine tool, new energy and aerospace equipment.

Senior Cabinet officials point out that although the executive ministry had planned the budget of roughly NT$36 billion, it may raise the fund after an intra-government meeting held on Aug. 10.

Compared with the mainland's Industry 4.0 program, Taiwan's will place importance on building self-sufficient manufacturing capability of key components crucial to turnkey smart factory, such as the controller, sensor and transducer used on robots.


Industry Reports

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


The US president Donald Trump
(photo courtesy of Agence France-Presse)

S. Korea most affected by U.S.-China trade spat: report

Dec 10, 2019

South Korea may have been hit the hardest among major economies by the protracted trade dispute between the United States and China due to its high dependence on exports to the countries, a report said Tuesday.The U.S. and China are the world's largest importers of South Korean products with shipments to China accounting for more than one-quarter of South Korea's overall exports last year, accord...


Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina </h2>

Trump reimpose tariffs on imports of steel and aluminium from Brazil and Argentina

Dec 05, 2019

Donald Trump will reimpose tariffs on imports of steel and aluminium from Brazil and Argentina after accusing the countries of a “massive devaluation” of their currencies that hurt US farmers. The move — which was announced by Mr Trump on Twitter on Monday — sharply escalates trade tensions with the two struggling Latin American economies as they build closer ties with China.The announcement ...



Industry In-Focus

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


This is the exterior of LC Fuel Tank's new plant which are being constructed in Xiluo Township. (photo courtesy of LC Fuel Tank)

Inevitable Rise of EV Spurs Fuel Tank Maker into Classic Car Industries

LC Fuel Tank Targets EU's Classic Car Market

Sep 05, 2019

As a top professional fuel systems manufacturer in Taiwan, and a global player in the automotive aftermarket industry, the fact that car makers are investing more resources into the electric vehicle (EV) than conventional vehicles powered by engine around the world is a challenging situation that LC Fuel Tank Manufacture Co needs to deal with. There’s no fuel tank in EV, only batteries. Each y...

LC FUEL TANK MANUFACTURE CO.


Taiwan's First Hand Tools Research and Testing Center Opens in Taichung on May 31(photo taken by Sung Chien-sheng)

Taiwan's First Hand Tools Research and Testing Center Opens in Taichung

Jul 23, 2019

In response to upgrading Taiwan’s hand tools industry and localizing services to the industry chains, China Steel Corporation (CSC), Taiwan Hand Tool Manufacturers' Association (THTMA) , Metal Industries R&D Center (MIRDC), and Corporate Synergy Development Center (CSD) have jointly established the research and testing center for hand tools in Taichung Industrial Park at the opening ceremony on M...



Supplier News

Vacuum Carbon Fiber Aero kits-super is extremely light with high hardness and high quality。

TWL-CARBON Specializes in Carbon Fiber Components of High-End Sport Cars

Nov 29, 2019

■Lo Su-hua Founded in 2001, TWL started its career as auto parts and aftermarket accessories trading company while entering the field of OEM of carbon fiber auto parts in 2012. However, with many years of manufacturing experience, TWL found a problem that has existed so long in the carbon fiber auto parts industry–the prices in the carbon fiber auto parts’ material are hugely different and...

Twlcarbon CO. LTD.


Pneumatic tools Airboss invented attracted buyers attention in exhibitions (photo courtesy Airboss)

Airboss air tools co., ltd., the shortest pneumatic tools attracted attention

Nov 19, 2019

■Lo Su-hua Concentrated on R&D, after-service and production, the Taiwan-based Airboss Air Tool Co., Ltd., a world-caliber supplier of pneumatic tools, which specialized in manufacturing compacted, light-weight, user-friendly pneumatic tools, high safety. The products are made with magnesium alloy and many specialties as lightweight, high precision, high rigidity. They are not only eco-fri...

AIRBOSS AIR TOOL CO., LTD.


Hsin Yi Chang Industry Co., Ltd showcases their quality vehicle visors, which are designated products by global big names. (photo courtesy of Hsin Yi Chang)

Global Vehicle Visor Player Hsin Yi Chang Seeks to Woo New Clients

Nov 19, 2019

■Tseng Lung-nan Equipped with a top-down supply chain, Hsin Yi Chang Industry Co., Ltd. is a company that has over 38 years of experience in vehicle visors and various precise acrylic molding. The firm markets its brand under “HIC” in Taiwan and many countries worldwide. HIC has been rolling out new vehicle visors, compatible with over 2,000 car models and types. Hsin Yi Chang General Manag...

HSIN YI CHANG INDUSTRY CO., LTD.



Insiders' Views

Caption: Pictured from front row, third right, Changhua County Government Economic Affairs Department Director Liu Yu-ping, County Magistrate Wang Huei-mei, Secretary Chen Bo-tsun pose in front of the exhibition booth. (Photo provided by CHCIA)

Changhua County Government Shores up Biz-Matching to Global Buyers

Nov 18, 2019

■Yang Feng-Chun In a bid to assist manufacturers in Changhua County to expand their market reach overseas against severe competition in the globalized market, Changhua County Government has been an active player in pushing for a makeover and innovation of its local small and medium-sized enterprises. This is done in hopes of establishing stronger connection with international markets. An ex...


Paul Master offers high-quality chassis and engines parts for passenger cars, trucks, and industrial trucks. (Photo courtesy of Paul Master)

Paul Master Builds Reputation with Auto Chassis and Engine Parts

Nov 18, 2019

Founded in 1980, Paul Master Auto Parts Co. is headquartered in Taiwan, a professional manufacturer of chassis and engines parts for passenger cars, trucks, and industrial trucks including forklifts. General Manager Terry Liang said the company has its own professional design department, which provides customized products and specifications for global buyers, including automobile steering and...

PAUL MASTER AUTO PARTS CO.


Nan Hoang Traffic Instrument Co., Ltd.</h2><p class='subtitle'>Taiwan First brakes Technology Co., Ltd. </p>

Nan Hoang Traffic Instrument Co., Ltd.

Taiwan First brakes Technology Co., Ltd.

Sep 04, 2019

Nan Hoang Traffic Instrument Co., Ltd is one of the major manufacturers of automobile friction materials in Taiwan and globally. Chairman Austin Cheng has implemented the double-arrow strategy this year - own brand of “YangPo” is adopted to focus on global channels while the “NHC brand focuses on improving market shares in global markets, such as Europe, America, Asia, Australia, and the Middle E...



Exhibition Highlights

CENS and EDN held a joint booth at the fair to promote Taiwan-made auto parts.

Automechanika Shanghai 2019 Consolidates Status as Asia's Top Exhibition for Automotive OE and Aftermarket

Dec 10, 2019

Automechanika Shanghai 2019 is well on its way to continue its succession of record-breaking shows. Boasting even more industry participation than ever before, the fair sees 6,590 exhibitors from 46 countries and regions around the world, a five percent increase from the previous edition. The show introduces a host of new themed zones and areas in keeping with industry trends, as well as expands ...


Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition </h2>

Full throttle ahead as Automechanika Shanghai 2019 opens for its 15th edition

Dec 02, 2019

As industry players approach the end of the year, Automechanika Shanghai 2019 participants look ahead at the latest products, services and technologies of the future. The show opens tomorrow until 6 December at the National Exhibition and Convention Center, (Shanghai). Being recognised as one of the most influential automotive trade fairs in the industry, it continues to act as a central hub for ...


59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products</h2>

59,000+ buyers visit twin lighting fairs and Eco Expo Asia Survey: lighting market steady; potential seen in smart products

Nov 12, 2019

Organised by the Hong Kong Trade Development Council (HKTDC), the 21st Hong Kong International Lighting Fair (Autumn Edition), the fourth Hong Kong International Outdoor and Tech Light Expo and the 14th Eco Expo Asia concluded with more than 59,000 buyers from 135 countries and regions visiting the three fairs. HKTDC Deputy Executive Director Benjamin Chau said: “Despite the recent public inc...