2023 Industry Trends

1. ©ITRI. 工業技術研究院著作
Industry Trends
Looking
into
Resource Patch for all workshops
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©ITRI. 工業技術研究院著作
Participants
Lecturers
Sessions
Days
16
5,000↑
2,880
66
8
Thanks to Department of Industrial
Technology (DoIT), MOEA
for support and guidance:
Acknowledgements to the following
organizations
7
23
3
1,120
683
2012 2022
Minutes
• Taiwan Electrical and Electronic
Manufacturers‘ Association (TEEMA)
• Taiwan Power and Energy Engineering
Association
• Taiwan Printed Circuit Association
• Allied Association for Science Park Industries
• Chinese Professional Management Association
• Photonics Industry & Technology Development
Association (PIDA)
• ITRI Alumni
• ELECLEAN Co., Ltd.
• dp Smart technology Co., Ltd
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©ITRI. 工業技術研究院著作
Looking into 2023: Four global trends;
opportunities arising from crises
Source: ITRI/ISTI Research
Policy-driven investments in
semiconductors
Transformation of the internal
combustion engine (ICE) vehicle
supply chain, propelled by
electric vehicles (EV)
Localization and domino effects
of decarbonization
Trend 1:
Digital
transformation
Trend 2:
Supply chain
reshuffling
Trend 3:
Investment in
semiconductors
Trend 4:
Net zero
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Three strategic measures for net zero: Maximum
green energy, low carbon, and electrification
Maximum green
energy
1
• Green energy is a key tool to achieve SDGs. Solar
and wind remain the main power. The U.S. and
European countries seek to revive the industry
with policy measures.
• The storage industry is rapidly developing.
However, companies are moving international
due to limited domestic demand.
• Global development in hydrogen drives the
convergence of green energy, green hydrogen
CO2 and the creation of a green industry
ecosystem.
Low carbonization
2
• Smart charging points will become a basic
infrastructure. This will gradually increase the
adoption of demand response for electric
vehicles.
• Bidirectional charging technology has moved
further for commercialization, allowing EVs to
serve as a resource for distributed power by
balancing the demand and supply in the grid.
New business models are emerging as a result.
Electrification
3
• Gradual rollout of supporting policies and
measures is expected to achieve net zero with
smartness and electrification. The adoption is
likely to grow over the mid/long term with
further development of technologies and
enhancement of cost competitiveness.
• Electrification of heating, i.e., the use of heat
pumps and electric boilers, can meet low-
temperature heating needs. The meeting of
other needs for mid-to-high temperatures in the
long run depends on the development of
electrical thermal technologies.
CO2
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
Advanced manufacturing processes, auto chips and net zero
accelerates the growth in annual production value of the
Taiwan semiconductor industry
Gaining traction in the auto electronics market
• MediaTek, Realtek, TSMC, UMC
and ASE Group, etc. have made
inroads into the OEM supply
chain in verticals by offering
products in 5G, automotive
Ethernet, advanced
manufacturing process, high
power solutions and automotive
testing/packaging.
• Net zero is an important issue in
sustainability for the industry.
• Certification and commitment
to carbon reduction for the
sustainable development of the
semiconductor industry.
Continued advancement of
manufacturing processes and
higher production value
• 2022 production value reached NT$4.7 trillion,
up 15.6% (compared with the global average of
4.0%).
• 3nm to ramp up in Q4 2022; 2nm to ramp up in
2025.
Hit the NT$5 trillion
production value in 2023,
ahead of expectations
Source: ITRI/ISTI Research
Voluntary publication of sustainability
reports to disclose ESG data and
sustainable development
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©ITRI. 工業技術研究院著作
Resilience and transformation of the
components industry amid headwinds in 2022
The year 2022 posed the biggest challenge of the past five years:
shrinking demand, high inventory, production disruption, the
U.S.-China competition. Difficult to maintain the production value
of NT$2.4 trillion amid a slew of adverse factors.
Strengthens in production management translated to
technological competitiveness and indispensability. Taiwan’s
components industry ensures global leadership with resilience
and transformation against the odds.
Maintenance of
NT$ 2.4
Trillion
mark
Passive
components
2,464
-5.9%
Battery
components
1,830
5.7%
Sensing
components
2,047
-6.9%
Printed circuit
boards
9,274
13.4%
Displays
8,085
-22.3%
LED
components
670
-18.3%
High specs /
high unit prices
Customer
segmentation
Units: NT$100m,
annual growth
3C PLUS
Production
path to net
zero
Digitalization,
smartness
and
modularization
CHINA+1
production
diversification
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
New plastic circular economy depends on supply
chain partnerships
Manufacturing
Reusable and recyclable materials
New value for pyrolysis oil
Manufacture
Products
Recycle
Plastic
Pyrolysis
Polymerization
Petrochems
Comprehensive
recycling technologies
Consumers
Reusable and recyclable products,
Environment incentives for price
differences
Recyclers
Centralization of complicated
processing of recycled materials
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
產品製造
Drivers of renewable carbons and green
chemical technologies
Renewable carbons Development drivers Green chemical technologies
Waste plastics and
rubbers
Waste biomass
CO2 emissions
• Limitations on use of single-use plastics
• Regulation and commitment on
recycled content target
• Ocean protection regulations
• Carbon neutrality regulation and
commitment
• Pyrolysis recycling
• Chemical degradation recycling
• Physical recycling (mechanical grinding
or solvation)
• Rising prices of fossil raw materials
• Biomass procurement policy
• Carbon tax
• Carbon neutrality regulation and
commitment
• Biorefinery
• Conversion of industrial biomass into
chemicals and plastics
• Reuse of agricultural residues
• Carbon tax
• Carbon utilization incentives
• Carbon neutrality regulation and
commitment
• Carbon capture
• Carbon utilization
• Design and change of materials to enhance the reuse of end-products is aligned with resource sustainability and
development of green chemicals.
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
Biotech market in 2022 and trends in 2023
Precision health
• Precision medicare, digital health and
regenerative medicine are among the
technologies to achieve precision health
• The global market size for these three key
technologies totaled US$266.1bn in 2021,
accounting for 10% of the total meditech
market, and will reach US$465.4bn in
2025 at a CAGR of 15.0% for 2021-2025.
Medical devices
• The global medical equipment market totaled
US$454.3bn in 2021 and is expected to reach
US$474.4bn in 2022 and US$535.2bn in 2024, at a
CAGR of 5.6%.
• As the pandemic subsides, the medical equipment
market growth will again be driven by the underlying
demand. R&D initiatives will focus on high-end
precision products, homecare and digital solutions
for medical treatment and disease.
Cell therapy
• An important biotechnology. The launch of CAR-T
(chimeric antigen receptor T) cell therapy has cured
many cancer patients. Gradual development of the
regulatory environment and supply chain will
accelerate the industry growth.
• The commercialization, scale production and
expansion of treatments in fields other than cancer
are a global pursuit.
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
Establishment of
a resilient supply
chain in Taiwan
Digital health tech looks after the future of
healthcare
Biotech resilience
Cross-disciplinary
innovation
Home Community
Institution Hospital
Genes Environment
Lifestyle
Value added service
Software + hardware
Holistic Health care
All-age health
Precision
treatment
Creation of value
with biotech
data
New use cases of
smart medicare
Bio Data
Data integration
Bio+ICT
Site validation
Source: ITRI/ISTI Research
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11. ISTI
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©ITRI. 工業技術研究院著作
Global auto market affected by chip shortage and COVID-
19 lingering impact. However, business opportunities for
vehicle electrification and intelligence continue to grow.
ICEs and EVs
• The number of cars sold
globally is expected to drop
3.7% in 2022 to 79 million.
2022
79
3.7%
Automotive electronics
• The global auto electronics
market exceeded US$270bn in
2021, back to the pre-pandemic
level, and is expected to reach
US$400bn in 2027.
2021
400
Auto components
• New car sales were affected in
Japan, Europe and the U.S. due
to chip shortages. The number
of pre-owned cars and the
number of vehicles in operation
increased. Enhanced
preparedness in sourcing of
components contributed to the
growth of exports. The 2022
production value is expected to
reach NT$210.22bn, up 3.6%
from 2021.
2022
210.22
3.6%
• In contrast, the global EV
market is expected to grow by
over 30% in 2022, to above 15
million units.
2022
15
30%
• The production value of
Taiwan’s auto electronics is
expected to break the
NT$350bn mark in 2022, driven
by electrification, connected
and autonomous cars.
2022
350
ICE and electric
motorcycles
• The global trend for net zero is
steering the motorcycle
industry towards electrification.
The global motorcycle market is
expected to reach 57.18 million
units in 2022, with the share of
electric vehicles increasing to
5.2%. Leading players in Taiwan
and overseas are developing
their ecosystems, in order to
accelerate commercialization.
2022
57.18
5.2%
270
US$, bn
2027
million
US$, bn
NT$, bn
million NT$, bn
million
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
2023 trends in the advanced electronic materials
industry
• The characteristics and benefits of
advanced electronic materials are
highly relevant to the manufacturing
cost of end products.
• Taiwan’s electronic materials industry
is a late starter. Most key materials are
imported. Geopolitical developments
during the past two years have resulted
in the reshuffling of supply chains.
• This seminar aims to explore how to
grasp early opportunities for the
electronic materials industry against the
backdrop of changing global dynamics.
• The issues of concern are compound
semiconductors, micro display
materials and technologies,
semiconductors for high-end
applications and key packaging
materials.
Manufacturing process
Business
opportunity
Technology
AR/MR
devices
VR
devices
Source: ITRI/ISTI Research
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13. ISTI
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©ITRI. 工業技術研究院著作
Trends in the communications industry in 2023
6G
5G
WIN strategy for Taiwan ICT technologies to stay mainstream
internationally and ahead of the game domestically
Wireless
Intelligence
Net zero
Development and opportunity of 5G open
architecture and private networks
These are key 5G developments going
forward
Ground equipment for low-earth orbit
satellites moves from stationary to mobile
New space-age tech for satellite communications,
driven by mobile demand
6G ultra high-speed transmission; Terahertz
(THz) technology development and use cases
Geopolitics and technological sovereignty dictate
6G standards and global co-competition. Advanced
high-frequency components are critical.
ICT security trends and the supply
chain of the communications industry
Product and supply chain cybersecurity is essential
to the resilience of the communications industry
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
Digital transformation, green
transformation, supply chain restructuring
Digital and green transformations for resilience
of industry ecosystems
Source: ITRI/ISTI Research
Dual transformation:
digital manufacturing + green manufacturing
Next generation
ICT technology
Digital
transformation
Data
Stay on top of
customers’ needs and
energy consumption
data
Management
Enhance customer
relationship management
and energy consumption
efficiency
Sustainability
Ensure the use of digital
technology beneficial to
environmental
sustainability
Innovation
Develop innovative
digital solutions to drive
sustainable growth for
corporates
Green
transformation
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15. ISTI
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©ITRI. 工業技術研究院著作
Four global trends; opportunities arising from
crises
Trend 1:
Digital
transformation
Trend 2:
Supply chain
reshuffling
Trend 3:
Investment in
semiconductors
Trend 4:
Net zero
• U.S. industry policy and
resilient supply chain
• Energy and EV development
amid the trend for net zero
• U.S. tech R&D and innovation
– identification of
opportunities for Taiwan
• Winter is coming:
Transformation in Europe and
seeking opportunities amid
crises
• New politics: industry policies
and resilience readiness
• U.K., France, Germany and Italy:
digital innovation and energy
transformation
• Global and E.U.: restructuring of
openness and cooperation and
acceleration of innovation
• Policy-driven investments in semiconductors
• Transformation of the internal combustion engine
(ICE) vehicle supply chain, propelled by electric
vehicles (EV)
• Localization and domino effect of decarbonization
• Net zero drives carbon reduction in emerging Asia
• Record high investment in emerging Asia due to
supply chain reshuffling
• Thailand and Vietnam as the focal point of EVs
Source: ITRI/ISTI Research
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©ITRI. 工業技術研究院著作
Global deployment of forward-looking and innovative
strategy towards a digital and green future
Source: ITRI/ISTI Research
Korean Digital New Deal 2.0 to create new
industries with hyperlinks for global
business opportunities in the metaverse Korea
Singapore
Japan
The Netherlands
Forward-looking, cross-disciplinary
integration for industry
competitiveness and social
Acceleration of digital + green
transformation, to integrate and innovate
the ecosystem and to strengthen national
resilience and sustainability
Energy and digital transformation, to
achieve climate neutrality in 2050
and deepen digital inclusion
1. National guidance and the world’s first metaverse industry strategy for
development of talents and companies
2. Support for strategic alliances of metaverse related corporates and
organizations and development of a robust industry ecosystem
3. Integration of public and private resources for a world-class metaverse
platform and encouragement of site validations
1. Reforms of macroeconomic and technological roadmap, to integrate
momentum from different domains and liaise with global networks of
cooperation
2. Dialogue among industries, academia and government agencies, to
formulate targets in key technologies and development goals
3. Prioritized investment in AI, photonics, cutting-edge materials to meet
the next generation’s requirements
1. Expansion of investments in innovative technologies, to reduce the
EU’s reliance on imported energy, technologies or products
2. Encouragement of corporate use of low-carbon technologies,
diversification of low-carbon energy for energy transformation
3. Deepening of digital inclusion to drive the digital economy and
enhance people’s standard of living
1. Continued digital transformation to enhance supply chain resilience
and move towards green industry
2. Advocacy of Green Plan 2030 and energy transformation, to accelerate
national sustainable development
3. A vibrant ecosystem of public-private partnerships and innovation, to
explore resilient solutions for industries and the country
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Cross-disciplinary innovations in digitalization,
sustainability and value propositions
Source: ITRI/ISTI Research
Cross-disciplinary
creation of value chains
SDGs -
Dimensions of
sustainability
Climate
actions
Climate change
strategy, water
resources and
green energy
Digital
transformation
Digital tools
Low-carbon
manufacturing
Energy conservation,
smart ESG, net zero,
carbon reduction
Source design
Low-carbon
innovative materials
and product recycling
mechanisms
Smart homes
Digital health,
remote
collaboration,
entertainment and
learning
Smart
domains
Industry integration
solutions for retailers,
financials, medicare
and industrials
Resilient cities
Smart grids, smart
logistics, resilient
supply chains
AI
Edge computing,
machine learning,
robotics, content
creation
Blockchain
Digital certificates,
consensus, smart
contracts, NFTs
Cloud services
Open data platforms,
data marketplaces,
cloud natives,
cybersecurity
Digital enablement, open platform creation, and source product design
Digi +
Sustainability Sustainability
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©ITRI. 工業技術研究院著作
Wheels of sustainability jointly created by the
government and the private sector
Source: ITRI/ISTI Research
Circular
economy Emerging
technology
R&D and
innovation
Cross-domain
cooperation
Infrastructure
upgrade
Cultural
Sophistication
Use of materials technology and change
of manufacturing processes to create
new business models and new value
chains, for greater supply chain
resilience and competitiveness
Education and competence development to
ensure employment during the
transformation for sustainability. Law
amendments and government guidance to
drive awareness, changes and social justice
Development and utilization of new
technologies in infrastructure such as energy,
water, transportation and
telecommunications, to create immediate
benefits in low carbon and sustainability
Energy efficiency enhancement, the circular
economy, low-carbon buildings and
transportation to be achieved with emerging
technologies or digitalization
Sustainable development encompasses economic,
environmental and social aspects. This involves full
participation by the government, corporates,
academia, educational institutions, and social
organizations from different domains and functions.
Tax measures, subsidies or investment
incentives to encourage R&D and
innovation in emerging technologies
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IEKView
2022 Special Issue
Thank you for your
attention
IEK Research Team:
Meng-Chieh Wang; Zack Hsieh; Ya-chi Huang; Terry Fan; Sayumi Chung
Hui-Hsiu Huang; Chi-Shin Yang; Nancy Liu; Paul Jiang; Yunnie Chang
Chung-Ming Tung; Yuan-Sung Chang; Jui-Chung Hsiao; Hung-Yi Chang
Chen-Cheng Fan; Chih-Chung Liu; Oakley Chen; Chun-Hui Chiu; Michelle Chen
Erh-Fang Lee; Amelia Hsu; Tsz-Yin Chang; Edward Liu; Lu-Lin Hsieh
Jui-Sheng Hsiao; Daisy Shen; Yu-Chien Tseng; Angela Chang; Robert Chang
Jing-Han Chen; Akuei Hsu; Jack Yang; Amy Lu; Chun-Ju Chen; Peace Ku; Johnny Huang
Wen-Chi Chang; Yu-Cheng Chen; Chia-Meng Chen; Wei-Chen Zhou; Saki Ho
Christine Chou; Annie Shih; Cynthia Chi; Lilian Lee; Chun-Ching Chang; Alex Lin
Jia-Chi Yeh; Tze-Min Lin; Yen-Shih Lin; Maurice Chou; Yu-Yi Chen; Chia-Ju Chen; Alan Tsao
Stephen Su
General Director
Industry, Science and Technology International Strategy Center (ISTI)
+886-3-5912548
stephen_su@itri.org.tw
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