The Bureau of Industrial Parks (BIP), Ministry of Economic Affairs (MOEA) announced on April 22 that its Tainan Branch has actively supported industrial upgrading through smart technologies. Through dedicated guidance, Chia Yi Steel Co., Ltd., located in the Minxiong Industrial Park, successfully implemented an AI-powered management system. By integrating digital supply chain connectivity and intelligent melting process analytics, the company increased its product yield rate from 85% to 95%, improved Overall Equipment Effectiveness (OEE) from 55% to 77%, and reduced electricity consumption by approximately 1.04 million kWh. These improvements translated into production cost savings of approximately NT$52 million, demonstrating the tangible benefits of smart manufacturing and net-zero transformation for traditional industries.
BIP has been actively promoting the "Industrial Park Smart Technology Value-Added Innovation and Cross-Domain Development Program," assisting enterprises within industrial parks in adopting digital tools and smart applications. Through technical support provided by the Metal Industries Research&Development Centre (MIRDC), Chia Yi Steel Co., Ltd. successfully prepared and secured a subsidy of NT$16 million under the MOEA's "Smart Machinery-Digital Supply Chain Integration and AI Applications for Industrial Clusters" Program administered by the Industrial Development Administration (IDA). Through AI implementation and information integration with supply chain partners, the project has accelerated the transformation of the entire supply chain toward smart manufacturing.
According to BIP, Chia Yi Steel Co., Ltd.'s successful transformation demonstrates that traditional industries can significantly enhance productivity, reduce energy consumption and operating costs, and strengthen international competitiveness through the effective adoption of AI-enabled technologies. Amid rapidly changing global markets and increasing customer demands for flexible production, stable quality, and efficient delivery schedules, AI applications have become a critical enabler for overcoming production bottlenecks and enhancing operational resilience.

The company's transformation centered on building a next-generation smart production line. By introducing an AI management system-often regarded as the "digital brain" of a factory-Chia Yi Steel improved manufacturing processes that previously relied heavily on human experience and judgment. Through real-time data monitoring, intelligent melting analysis, and predictive process control, the company further enhanced operational stability and product quality. In addition, Chia Yi Steel established a comprehensive production and operational big-data platform, enabling management personnel to make data-driven decisions regarding workforce allocation, inventory management, and production scheduling. This has laid the foundation for predictive maintenance and early quality anomaly detection, significantly reducing the risk of product defects.
This year, Chia Yi Steel Co., Ltd. was invited to participate in the Net Zero City Expo, where it showcased its AI-driven smart manufacturing achievements and collaborated with five upstream and downstream supply chain partners to promote a new model of green net-zero supply chain development. Looking ahead, BIP will continue to facilitate the adoption of smart technologies within industrial parks through cross-sector collaboration and technical guidance, helping more traditional industries seize AI transformation opportunities and enhance their global competitiveness.


Spokesman: Mr. Liu Chi-Chuan (Deputy Director General, BIP)
Contact Number: 886-7-3613349, 0911363680
Email: [email protected]

Contact Person: Kuo, Chung-Wen Deputy Director of Tainan Branch, BIP)
Contact Number: 886-6-3842980 ext.6312
Email: [email protected]