The Market Intelligence & Consulting Institute (MIC) conducted a survey on AI adoption in Taiwan's electronics and information manufacturing sector. According to the findings, 28% of manufacturers have already implemented AI, while 46% are in the planning stage. Overall, large enterprises are ahead in AI adoption compared to small and medium-sized enterprises (SMEs). However, SMEs are rapidly catching up, with their AI budgets expected to grow at a 26% CAGR from 2024 to 2026, reflecting an active approach to AI adoption.
In analyzing the progress of AI implementation, MIC highlights that the fastest development occurs in the IT departments of non-manufacturing units, where 60% of companies have already implemented AI. This suggests that IT departments are often the driving force behind transformation within organizations. The second-fastest progress is seen in manufacturing units, specifically in "manufacturing production" and "product quality inspection" departments.
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
Among the top AI applications being adopted, quality inspection applications are the most popular, with two of the top three applications directly related to this area. Half of the top ten AI applications are related to manufacturing production. The ten most common AI applications are as follows: "defect detection," "defect image labeling," "production process improvement," "product development reporting," "root cause analysis for defects," "production scheduling and planning," "design defect detection," "industrial safety accident analysis," "process parameter optimization," and "production issue root cause analysis."
Looking ahead, MIC projects the greatest demand for AI in the "manufacturing production" department, followed by "product R&D" and "product quality inspection." These three departments are expected to increasingly diverge from other departments in terms of their level of intelligence and automation.
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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