| dc.description.abstract | Taiwan is the second-largest supplier of TFT-LCD panels in the world, with a production value of over NT$1 trillion. It is an important industry in Taiwan. However, in recent years, Chinese panel manufacturers have been expanding and investing in growing production capacity due to government grants. This has caused long-term market supply and demand imbalances, which have presented severe challenges for Taiwanese TFT-LCD panel manufacturers. Without the ability to increase production capacity, Taiwanese panel manufacturers must focus on improving their manufacturing technology and strengthening manufacturing ability to compete with other competitors.
In this case study, the company is a large Taiwanese panel manufacturer. In a highly competitive environment, the company has shifted its business strategy from scale competition to value competition by investing in high-quality production capacity and production efficiency. Since 2014, the company actively integrated internal and external information and combined it with the theory of Germany′s Industry 4.0, implementing smart manufacturing processes and work modes in factory. They used automation, industrial internet of things (IIoT), artificial intelligence (AI), the Internet of Things (IoT), digitization, and other technologies to enhance productivity and overall yield, and strengthen its competitiveness.
This study explores the impact of investing in smart manufacturing on production productivity and efficiency in the panel industry, based on literature review and using the company′s financial data to calculate productivity. After the company began to introduce smart manufacturing processes, between 2015 and 2021, the quality and yield of its products have improved, and its productivity has grown by about 49%. Furthermore, compared with its industry peers, the company′s investment in smart manufacturing has made it more competitive in terms of labor productivity, capital productivity, and total productivity. | en_US |