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              INDUSTRY TRENDS



              Net-z
              Net-zero pledges are crucial ero pledges are crucial


              for improving the machinery or improving the machinery
              f


              industry’s resilience and y’s resilience and
              industr


              sustainability bility
              sustaina


























                   ith countries pledging to achieve net-zero emissions,   Using the local machine tool industry as an example,
              Windustries such as manufacturers must step up to   Dr. Yao pointed out that it was once ranked 7th in terms of
              implement greener solutions to production. The machinery   industry value worldwide, while in export value, it ranked
              industry in Taiwan has been on the cusp of significant   fourth, following Germany, Japan, and Italy. Dr. Yao credits
              changes in the past decade, as Industry 4.0 and smart   Taiwan’s unique industry hub model for the machine tool
              manufacturing were increasingly introduced into this   success story, similar to the “urban production” concept that
              sector. In a discussion with Taiwan Machinery Industry   is more popular abroad. He believes that the advantages of
                                                                  the industry hub model can off er net-zero emission eff ects
              Trends, we spoke to Dr. Da-Jeng Yao, General Director   today.
              of the Mechanical and Mechatronics Systems Research
              Laboratories at the Industrial Technology Research Institute   Under ITRI’s R&D counseling, the Institute has helped
              (ITRI). Dr. Yao shares his insights for Taiwan’s machinery   guide the machinery suppliers’ transition to greener
              suppliers on the pros and cons of keeping up with net-  energy usage and improved power effi  ciency through four
              zero guidelines, and how suppliers can carry out the   areas: energy supply, power consumption, low-carbon
              process to improve the machinery industry’s resilience and   manufacturing, and sustainable environment. Dr. Yao also
              sustainability.                                     said that ITRI has rolled out net-zero emission transition
                                                                  consulting services for industries by connecting the industry,
              Taiwan Machinery’s Advantages                       academic, and government sectors to work together.
                                                                  He cited Fong Kee International Machinery’s efforts
                 Taiwan’s machinery sector was ranked as Taiwan’s   in electrifying all of its equipment to replace traditional
              third largest, trillion dollar-valued export industry behind   hydraulic motors and introducing smart manufacturing
              semiconductors and display panels, having accumulated an   technologies to address issues like energy waste and
              industry value of approximately NTD $1.3 trillion in 2021.   pollution. Electrifying machinery can help suppliers save
              The domestic machinery sector boasts a comprehensive   20% to 40% for its energy used.
              industry hub by functioning under a high-mix, low-volume
              manufacturing system. The core advantage of this model in   Where Can Taiwan Go from Here?
              Taiwan includes achieving fast lead times, low costs, and
              supplier fl exibility towards various demands.         Taiwan’s machinery suppliers can no longer rely on a
                                                                  cost-reduction strategy, as the external cost of energy and





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