Facing the 5G Smart Manufacturing Wave, Taiwan Faces Three Major Challenges
Trend

Facing the 5G Smart Manufacturing Wave, Taiwan Faces Three Major Challenges

Driven by the German government's national policy, Industry 4.0 has become the most high-profile manufacturing issue in the world. Therefore, countries have successively launched corresponding smart manufacturing policies. With the help of 5G, the world is facing an uncompleted and perfect 5G environment to respond to smart manufacturing Yes, and Taiwan still has many opportunities and challenges in 5G smart manufacturing. Taiwan ’s 5G commercialization is imminent, and it is still expected that the government, telecommunications operators, and automation industry will work together to accelerate the full implementation of 5G.
Published: May 22, 2020
Facing the 5G Smart Manufacturing Wave, Taiwan Faces Three Major Challenges
It is estimated that the global 5G smart manufacturing market will reach 42 billion US dollars in 2026

With the help of 5G (5th Generation Mobile Networks or 5th Generation Wireless Systems), in the short term, it can provide a single application service with higher specifications, such as real-time monitoring of millisecond response capabilities; for long-term development, under the 5G architecture, it is easier to integrate the scattered data in the past A single overall system is estimated to be only US $ 252 million in the global 5G smart manufacturing application service market in 2023. With the maturity of 5G communication technology, it will drive demand and supply to rise. The market can reach about 42 billion US dollars. The MIC believes that projects including equipment monitoring, AR / VR, AGV / AMR, digital avatars, artificial intelligence, and network security that combine 5G and smart manufacturing will be prioritized within the next six years.

Four major 5G potential applications in Taiwan

To understand the needs of Taiwan's industry for 5G smart manufacturing, the MIC has conducted in-depth interviews with Taiwanese manufacturers, including: petrochemical industry, steel industry, machinery industry, optical industry, semiconductor industry, automobile manufacturing industry, locomotive manufacturing industry, electronics manufacturing industry , Smart manufacturing system integrators, etc., and summarized the Taiwan industry's 5G smart manufacturing related applications, the most interesting items are unmanned inspection, AR / VR, equipment monitoring, security monitoring, etc.

In terms of unmanned inspections, drones have become an emerging inspection tool in recent years. UAVs have many advantages such as maneuvering flexibility, cost reduction, and freedom from terrain restrictions. They have gradually become daily inspections in the industry, especially petrochemical The industry's parks are vast, and pipelines must be routinely inspected. At present, most of them are repetitively inspected daily by manpower. In the future, if 5G and unmanned vehicles are combined, pipelines will be made through sensing methods such as cameras, infrared, and microwave Unattended inspections such as patrol inspections and power inspections, in addition to reducing human burden, can also reduce accidents caused by human negligence. In terms of AR / VR, it is generally agreed that in the manufacturing industry, to meet the needs of mobile power and bandwidth, AR / VR does require 5G. However, the industry also considers that even if there is a demand, the relevant content is still required. To be developed, such as maintenance operation procedures, education and training, etc.

Taiwan system integrators occupy an important position in the world, and customers all over the world, but the contract between customers and system integrators stipulates that they need to go to the site for maintenance and troubleshooting within a time limit (hours or days). System integrators believe that if Through the application of AR / VR, it can quickly help customers remove obstacles, or remotely understand why the obstacles are in real time, which is helpful for the efficiency of repair and maintenance, which is a win-win situation for customers and industry.

Compared with maintenance, AR / VR education and training is the second requirement, and the demand for AR / VR education and training is higher for those with high production costs. The reason is that those with low production costs tend to let recruits practice and train on the ground. Feel, or play the video directly for education and training. On the contrary, those with high production costs have high pressure on the cost of scrapping caused by education and training, so they are willing to use digital education and training instead of on-site training.

In the equipment monitoring part, whether it is machine maintenance or production optimization, because it involves core production, it has always been a topic of concern to enterprises. The equipment monitoring application has been in use for many years, but it is mostly used to collect historical data and then estimate the machine or production situation, and then implement countermeasures. However, high-value products, such as aviation parts, have high production costs. It also needs to be able to monitor through 5G at all times. If a large number of connected production equipment is involved, the fancy feature of 5G is low latency and large connections.

In the security monitoring part, the trend of smart manufacturing not only drives the transformation of the manufacturing industry, but also brings changes in industrial safety requirements. Various sensors (such as environmental detectors) plus wireless communication can send the measured information to management at any time. On the client side, employees can wear the device to send the information to the cloud. If a worker accidentally happens, 5G's low-latency feature can rescue and even avoid injury in the first place.

Three challenges in 5G practice

Challenge 1: Manufacturing is being upgraded, and the lack of 5G preparation is a bottleneck for development. The primary challenge currently facing 5G smart manufacturing is that most companies have a low level of smart manufacturing, and most Taiwanese SMEs have already faced great challenges in the three stages of equipment networking, digitalization, and smartness. 5G has technologies, solutions, and business models. Unknown, companies choose to step by step rather than step by step.

Challenge 2: The main production equipment relies heavily on wired communication, and wireless applications are mostly peripheral needs. According to the application of the factory, the core main production equipment is mostly deployed by wire, and the wireless applications are mostly for the factory's production of peripheral or factory affairs applications. For example, the unmanned van borrows industrial Wi-Fi to repair, and the wearable device uses Zigbee to monitor personnel safety. By RFID or LPWAN for material tracking, generally Wi-Fi is deployed for office administration. To ensure the stability of the production line in the operation of the factory, most companies dare not to rush to replace the existing core production equipment deployed by Ethernet. It is expected that 5G will first use the peripheral applications of the factory as the main entry point, and then gradually expand the core production equipment However, although most of the surrounding factory applications use wireless transmission, but because it is not a core production equipment, companies lack the incentive for equipment to be replaced.

Challenge 3: The environment is not yet mature, and the demand side is not easy to assess. The global 5G R16 standard is undecided, and R16 will further study to enhance URLLC to correspond to Industrial Internet of Things (IIoT) applications. Therefore, at this stage, 5G solution providers are waiting for the confirmation of the R16 version before they can launch solutions. The second is that 5G technology is not yet mature, and manufacturing is about reliable and stable production procedures. Even though 3GPP will announce R16 at the beginning of this year, I am afraid that enterprise users will wait another 2-3 years for standards and technical verification periods to confirm equipment, the solution is stable and perfect. The 3GPP R16 specification is expected to be completed in early 2020. This version supports more URLLC applications and further enhances the challenge of URLLC for IIoT. The supply side will gradually launch 5G equipment and 5G solutions. With the equipment and environment gradually completed, it will help the overall development of global 5G smart manufacturing.

Published by May 22, 2020 Source :chinatimes

Further reading

You might also be interested in ...

Headline
Trend
Innovation in the Medical Consumables Industry Amidst Global Trends
The global healthcare industry is currently undergoing a pivotal paradigm shift. Every macroeconomic trend—from demographic changes, the geopolitical reshaping of supply chains, and the convergence of biotechnology and digitalization, to the urgent demand for environmental sustainability—profoundly impacts the dynamics and trajectory of the medical device market. Against this backdrop, the medical consumables industry must not merely adapt; it must proactively lead innovation and become a key driver in building resilient healthcare defenses.
Headline
Trend
From Components to Systems: Unveiling the Core Drivers of Robotics Industry Trends
Artificial intelligence and automation technologies are advancing at a rapid pace, driving large‑scale deployments of robots across manufacturing, healthcare, logistics, and service sectors. This momentum is propelling overall industry upgrades and operational efficiency leaps. Amid this wave, mastering the manufacture of high‑precision, high‑reliability core components has become the decisive factor in market competitiveness.
Headline
Trend
The Purifying Force Between Industries: The Evolution and Trends of Cutting Fluid Recycling Systems
Over the past decade, cutting fluid recycling and regeneration technologies have evolved from auxiliary support services into essential core equipment and processes within manufacturing. Recycling and reusing cutting fluids reduce raw material and water waste, making production processes more aligned with circular economy principles. According to market forecasts, the global cutting fluid market size will reach USD 3.78 billion in 2024 and is expected to grow to USD 5.64 billion by 2033, with a compound annual growth rate (CAGR) of approximately 4.3%. Among this, the market for regeneration equipment and treatment services is expanding particularly rapidly, reaching about USD 1.31 billion in 2024 and projected to double to USD 2.61 billion by 2033, with a CAGR as high as 7.8%.
Headline
Trend
Future Trends and Key Technological Breakthroughs in Plastic Recycling Equipment
As global environmental awareness continues to grow, the plastic recycling industry is presented with new development opportunities. However, the sector still faces multiple challenges, including improving recycling rates, efficiently sorting various types of plastics, and reducing operational costs.Plastic recycling involves sorting, cleaning, and processing waste plastics into reusable materials, helping reduce pollution and promote resource reuse.
Headline
Trend
The Shift to Onshoring: How Taiwan’s Supply Chain Strength Is Drawing Global Investment
Recently, increasing geopolitical tensions and global supply chain disruptions resulting from the pandemic have caused multinational corporations to rethink the structure of their supply chains. To mitigate risks and improve resilience, a growing number of manufacturers are shifting their operations from offshoring to onshoring and nearshoring. Thanks to its robust manufacturing ecosystem, strategic location, and technological expertise, Taiwan has emerged as a key destination for advanced manufacturing and high-value component production. Backed by a highly skilled workforce, resilient infrastructure, and advanced manufacturing capabilities, Taiwan is deeply integrated into global technology supply chains and offers stable, tech-driven production networks. These strengths position Taiwan as an ideal onshoring partner and are drawing renewed global investment.
Headline
Trend
Custom Mold and Die Services in Southeast Asia: Taiwan’s Competitive Edge
Custom tooling is the foundation of precision manufacturing, enabling the production of everything from smartphone casings and automotive parts to packaging components and medical devices. In this fast-growing market, Taiwan had remained a trusted leader, delivering advanced tooling solutions that meet the speed, complexity, and quality demands of modern industry.
Headline
Trend
Taiwan's E-Bike Export Surge: Key Markets and Trends Driving Growth
Taiwan's e-bike industry has experienced significant fluctuations in recent years. After reaching a peak in 2022, exports faced a downturn in 2024, with a 47% decline in e-bike exports compared to the previous year. Despite these challenges, the industry is showing signs of recovery and adaptation, positioning itself for future growth. Taiwan has rapidly emerged as a global leader in this booming sector. Once primarily recognized for traditional bicycle manufacturing, Taiwan has transformed into a high-tech hub for premium electric mobility solutions.
Headline
Trend
Taiwan's Strategic Role in Global Data Storage and Memory Supply Chains
With its robust semiconductor industry, advanced manufacturing capabilities, and strategic investments, Taiwan contributes significantly to the production and innovation of memory technologies essential for various applications, from consumer electronics to data centers.
Headline
Trend
Taiwan’s Medical Device Manufacturing: The Medical Devices Act and Its Global Significance
In recent years, Taiwan has emerged as a significant player in the global medical device industry—an ascent shaped not only by its advanced manufacturing capabilities but also by bold regulatory transformation. At the heart of this transformation is the Medical Devices Act, a landmark piece of legislation that redefined how medical technologies are developed, approved, and marketed within Taiwan. Driven by the need to align with international standards and respond to the growing complexity of modern medical technologies, the Act has introduced a risk-based regulatory framework, streamlined approval processes, and facilitated global market access. These reforms have strengthened Taiwan’s position as a competitive and trusted source of medical devices for global healthcare markets. Taiwan's medical device industry is now undergoing rapid growth, propelled by this regulatory clarity, continued investment in high-tech innovation, and rising global demand for safe, effective, and export-ready medical solutions. For manufacturers and investors looking to access the international medical device market, Taiwan offers a strategically evolving landscape that is both business-friendly and globally connected.
Headline
Trend
Taiwan’s Strategic Role in the Global Solar and Battery Market: Opportunities and Innovations
Taiwan’s solar generation reached 12.9 billion kWh in 2023, providing almost 48% of Taiwan’s total renewable energy generation. The focus of the government on energy security and sustainability aligns with the expansion of solar energy infrastructure. The growing electricity demand is pushing the need for additional solar photovoltaic (PV) installations, particularly in industrial and commercial sectors, which are significant consumers of electricity in Taiwan. Moreover, the energy requirements of the industrial sector are driving the adoption of large-scale solar PV projects. In parallel, Taiwan's battery market is expected to reach USD 0.77 billion by 2025 and grow at a CAGR of 14.3% to USD 1.49 billion by 2030. The government plans to accumulate 590 MW of battery-based energy storage by 2025, with significant contributions from both public and private sectors.
Headline
Trend
Powering the Future: New Energy Vehicles, Sustainable Manufacturing, and Challenges
In the quest for a sustainable and eco-friendly future, the automotive industry is witnessing a profound transformation with the emergence of New Energy Vehicles. New Energy Vehicles, commonly known as NEVs, encompass a wide range of vehicles powered by alternative energy sources or a combination of traditional and renewable energy technologies. The implementation of sustainable manufacturing practices and collaboration among stakeholders presents challenges for NEV development as well as great potential for market growth.
Headline
Trend
Charging Ahead: Recharging Infrastructure in the Electric Vehicle Industry
As the electric vehicle (EV) revolution gains momentum worldwide, one of the critical pillars supporting this transition is the development of a robust recharging infrastructure network. This network plays a pivotal role in the widespread adoption of electric vehicles, ensuring convenience, accessibility, and sustainability for EV owners. Factors contributing to the acceptance of EVs and their associated recharging infrastructure include environmental awareness, advancements in battery technology, vehicle design, the expanding range of available EV models, and the implementation of government incentives to promote these new technologies.
Agree