Taiwan’s 2025 Industrial AI Survey reveals only 38% manufacturer adoption, while Qualcomm’s new ITRI collaboration aims to deploy AIoT systems in 50 factories amid U.S.-China tech decoupling pressures.
Qualcomm’s June 25 partnership with Taiwan’s Industrial Technology Research Institute (ITRI) to implement AI-powered quality control systems exposes the island’s paradoxical position as both semiconductor titan and AI latecomer.
Smart Manufacturing Push Meets Low Adoption Rates
Qualcomm’s real-time defect detection system, developed with ITRI engineers, promises 30% efficiency gains in Taiwan’s PCB factories. This June 25 initiative comes as the National Development Council reports only 38% AI adoption among manufacturers – below Vietnam’s 41% and Thailand’s 44%.
Geopolitical Pressures Reshape Supply Chains
The U.S. Commerce Department’s June 27 expansion of AI chip equipment restrictions has indirectly impacted TSMC’s legacy node clients. Meanwhile, Germany’s $840M April semiconductor imports from Taiwan – up 22% monthly (Digitimes) – signal shifting European alliances.
Chip Dominance vs AI Services Deficit
While Samsung’s HBM4 production plans (announced June 23) highlight Taiwan’s packaging expertise, local AI startups have secured just $156M in 2024 versus South Korea’s $892M (CB Insights). AMEC CEO Charles Lin’s recent Chinese citizenship switch (TechNode) exemplifies talent flow tensions.
Historical Context: Taiwan’s Tech Adaptation Patterns
In 2016, Taiwan transformed its machine tool industry through Germany-inspired Industry 4.0 partnerships, achieving 19% export growth within two years. This precedent suggests SME clusters could develop niche AI solutions for legacy sectors like bicycle manufacturing.
Semiconductor Trade Under Scrutiny
The current $72B chip export volume mirrors 2021 levels, but with 18% higher EU-bound shipments. Previous U.S. export control expansions in October 2022 saw Taiwan’s semiconductor equipment sales drop 7% before recovering through Southeast Asian markets.
