TAMI Urges Semiconductor Supply Chain to Boost Customization Strategies

As Taiwan's machine tool industry continues to face recurrent downturn, Taiwan Association of Machinery Industry (TAMI) Chairman Ta-li Chung said the association has, in recent years, actively encouraged member companies to move into the semiconductor sector by strengthening customization, enabling them to enter the semiconductor supply chain. The association has joined the Taiwan AI and Robotics Alliance, advancing efforts to establish an autonomous ecosystem for critical components.

Chairman Chung emphasized that the government should adopt a national strategic perspective and prioritize formulating relevant policies to support domestic development of key components across semiconductor equipment, AI robotics, and defense industries. This, he said, is "a priority above all priorities."

Taking intelligent robotics as an example, Chairman Chung noted that the completeness of the supply chain has a direct impact on manufacturing costs. China's approach, he said, has involved large-scale government subsidies where no expense was spared. As a result, the current pricing of products made in China has discouraged Taiwanese companies that are considering or have already begun investing in the sector, prompting end users to turn directly to Chinese suppliers.

Chairman Chung further explained that artificial intelligence is ultimately materialized through robots, the hardware embodiment of AI. Hardware systems are built on critical components, and regardless of whether the application involves industrial robots, service robots, humanoid robots, or robotic dogs, these key components must be developed through customization.

While Taiwanese manufacturers possess the technical capability to develop critical robotic components, Chairman Chung acknowledged that the high cost of customization, combined with insufficient market demand, complicates sustained profitability.