A recent survey conducted by the Market Intelligence & Consulting Institute (MIC) on the adoption of AI in Taiwan's electronics and information manufacturing industry reveals that 28% of manufacturers have already implemented AI, while 46% are in the planning phase. Overall, large enterprises are ahead in AI deployment, but small and medium-sized enterprises (SMEs) are quickly catching up, with AI budgets set to grow at a compound annual growth rate (CAGR) of 26% from 2024 to 2026. This reflects a strong commitment to AI adoption. Among industry segments, printed circuit boards (PCBs), optoelectronic materials, and component manufacturers are leading in AI adoption, while other electronic components, computers, and peripheral equipment sectors are lagging behind.

Current AI Adoption in Taiwan's Manufacturing Industry

Note 1: AI development levels range from Lv0 (No Demand) to Lv4 (Expansion Stage), with "Companies Adopting AI" encompassing Lv2 to Lv4.
Note 2: The survey was conducted in November 2024 by MIC, with 316 valid responses from C-level executives, production technology, R&D, and IT departments in the manufacturing industry.
Source: MIC, March 2025

According to MIC Industry Analyst Chia-Fu Chang, manufacturers view AI as a key tool for improving operational performance and reducing costs. The industry's primary focus remains on key performance indicators (KPIs) such as yield rate, production capacity, time-to-market, and cost efficiency, with AI playing a crucial role in achieving these targets.

MIC further examined manufacturers' satisfaction with AI-driven solutions. The top three benefits observed after AI implementation include revenue growth, alleviating labor shortages, and cost reduction. However, several other performance metrics are still being monitored for effectiveness. Notably, "enhanced issue predictability" received the lowest satisfaction rating. Analyst Chang attributes this gap in AI forecasting accuracy to two main factors: external uncertainties such as geopolitical shifts, market fluctuations, and unforeseen events, as well as companies' varying levels of data readiness.

As Taiwan's manufacturing sector accelerates AI adoption, enterprises must continue strengthening their data infrastructure to fully realize AI's predictive and operational potential.

About Market Intelligence & Consulting Institute (MIC):

Established in 1987, the Market Intelligence & Consulting Institute (MIC) is a division of III (Institute for Information Industry), a leading government think tank and one of Taiwan's foremost IT research institutes. With over three decades of experience, MIC specializes in industry and market research, delivering data-driven insights and strategic recommendations to assist businesses in making informed decisions.

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