Taoyuan is an important export city in the ICT supply chain of Northern Taiwan, with excellent industrial manufacturing capabilities, and an annual industrial output of more than NT$4 trillion, including more than 12,000 companies in different industries.
Taoyuan's strategic location near international ports and its role as an Asia-Pacific transportation hub significantly impact the global computer and high-end server manufacturing supply chain. In response to the AI era, the Taoyuan City Government has launched the Intelligent Manufacturing Service Center to support enterprise transformation and competitiveness. Additionally, it has formed the Information Power Alliance in collaboration with industry and academia, offering forums and courses that drive innovation, foster diversified applications, and enhance information security.
Supply Chain Advantages of Taoyuan's Technology Industry
The rise of artificial intelligence (AI) and its applications has transformed operations across numerous industries. In the face of global competition, Taoyuan stands out as Taiwan's only international airport offering express customs clearance, complemented by its proximity to major ports like the Port of Taipei. This strategic location provides seamless access to both shipping and maritime transportation. Additionally, Taoyuan boasts a well-developed railroad and highway network that connects key technology hubs such as Hsinchu, Nangang, and Neihu, creating Taiwan's most comprehensive support ecosystem. These advantages make Taoyuan an ideal location for multinational enterprises to establish operations and R&D centers.
Taoyuan hosts numerous industrial zones under the jurisdiction of the Ministry of Economic Affairs, making it a critical driver of Taiwan's economy. According to the 2023 factory corrections and operations survey, the city achieved the nation's highest industrial output value at NT$4.8 trillion, supported by 37 industrial zones, including a free trade port, a science park, and an aerotropolis. This extensive infrastructure underpins a thriving manufacturing sector, which is home to approximately 200 of Taiwan's top 500 manufacturers. Key industries include electronics, components, machinery equipment, and chemical materials. Taoyuan also supports emerging sectors like artificial intelligence, electric vehicle components, biotechnology and medical services, aviation, and logistics.
The city's diversified industrial clusters offer significant supply chain advantages for AI-related industries such as semiconductors, ICT, and electronics. These clusters not only streamline operations but also enhance collaboration among enterprises. With its robust ecosystem and complementary industrial capabilities, Taoyuan has become an attractive destination for global leaders like Amazon, Microsoft, ASML, Google, Synopsys, Dell, and Hewlett-Packard, many of which are setting up R&D and marketing teams in the region. By fostering a unique blend of traditional and high-tech industries, Taoyuan solidifies its status as a hub for innovation and economic growth in Taiwan.
The foundation of industrial development lies in talent, and as global industries become increasingly competitive, there is broad consensus on the importance of cultivating and attracting technical expertise. Among Taiwan's six major cities, Taoyuan stands out as the only one with a growing population. Home to esteemed academic and research institutions such as the National Sun Yat-sen Institute of Science and Technology, the National Institute of Atomic Energy Science and Technology, and 17 universities and colleges (including branch campuses), Taoyuan offers a supportive environment for talent development. Each year, the city nurtures over 25,000 skilled professionals across various fields, enabling industries to effectively recruit, retain, and replenish their workforce.
Intelligent Manufacturing Helps Accelerate the Development of AI Industry in Taoyuan
The applications of AI technology continue to diversify, but with the global push for net-zero carbon emissions gaining momentum, countries are increasingly adopting carbon reduction strategies. In response to this trend in international trade, Taiwan's government and enterprises have taken proactive steps to reduce emissions. Taoyuan, in particular, is actively formulating carbon reduction strategies and advancing its net-zero transformation initiatives. However, the science and technology sector, characterized by its high energy consumption, faces significant challenges in achieving these carbon reduction goals.
Taoyuan's industrial landscape is primarily centered on manufacturing, with transformation efforts focusing on three key areas: process improvement, energy conversion, and the circular economy. Recognizing the needs of small and medium-sized enterprises (SMEs), the Taoyuan government has implemented the Smart Taoyuan Project over the past two years, offering tailored guidance to support industry transitions.
A significant initiative under this project is the establishment of the Smart Manufacturing Service Center, which helps businesses replace outdated, energy-intensive equipment such as cooling, heating, and air-conditioning systems, lighting, chilled-water mainframes, and air-pressure systems. By integrating smart manufacturing technologies like data analytics and automation, the center aims to optimize production processes and enhance energy efficiency. Looking ahead, the Smart Industry Academy will soon launch to provide in-depth training courses, empowering industries to embrace transformation and develop innovative solutions for diverse applications.
