Welcome to another episode of Taiwanology. Join us as we explore the intricate world of Taiwan's industrial computing sector. This episode is hosted by Kwangyin Liu, featuring our expert guest, Chaney Ho, co-founder of Advantech and a pioneer in Taiwan's tech industry.

In this episode, we delve into the remarkable journey of Advantech, from its humble beginnings to becoming a global leader in industrial computing. We discuss the technological innovations, market dynamics, and strategic decisions that have propelled Taiwan to the forefront of the industry.

Tune in to uncover the secrets behind Taiwan's success in industrial computing and discover what the future holds for this tech powerhouse!

【Breakdown】

• 05:30 - How Advantech started and why was the navy its first customer?
• 13:20 - How industrial computers determine our daily lives?
• 23:16 - What is "edge computing" and what does it have to do with industrial computing?
• 29:10 - Why Taiwanese companies provide over 70% of the world's industrial computers

Here's a snippet of the highlights from this episode. Want to dive deeper and explore the full content? Click the link now to listen!

【Taiwanology Ep.27】Why Taiwan provides most of the world's industrial computers

How Advantech started from a small kitchen lab to a global powerhouse?

Advantech's story is one of humble beginnings and remarkable growth. Co-founded in 1983 by Chaney Ho, KC Liu, and YM Huang, Advantech started as a small venture operating out of a rented kitchen. Chaney Ho recalls, "We were just three young engineers from HP with a vision to revolutionize automated testing. We had no idea we would become the world's leading provider of industrial computers."

Their journey began in the early 1980s when Taiwan's manufacturing sector was on the rise, and there was a critical need for automatic test equipment. "We saw an opportunity," Chaney explains. "HP had the precision machines, and we had the expertise to develop programming for instrumentation and testing." Their first significant client was the Taiwan Navy, for whom they built a missile testing system. "That project was a turning point," says Chaney. "It established our reputation for reliability and precision."

As Advantech grew, they expanded their technological capabilities and product offerings. Their focus on innovation led to the development of more sophisticated automated testing systems and a wider range of industrial computers. These advancements allowed them to cater to various sectors, including automotive, energy, and healthcare. Advantech's commitment to quality and reliability became their hallmark, setting them apart from competitors.

From a small kitchen lab to a global powerhouse, Advantech's journey underscores the importance of vision, innovation, and strategic growth. The company's ability to adapt to changing market demands, and technological advancements has been a crucial factor in their success.

The industrial computers keep your daily life running

Chaney Ho vividly describes how industrial computers have become integral to our daily lives. "These robust and durable machines operate in environments where reliability is crucial," he says. Unlike commercial computers, industrial computers are designed to withstand extreme conditions such as high humidity, temperature variations, and vibrations. These robust and durable machines are essential in environments where reliability is paramount.

Consider the role of industrial computers in public transportation. At bus stops, real-time arrival information is provided by computers that communicate wirelessly with buses. This technology enhances the efficiency and reliability of public transportation systems, reducing wait times and improving passenger satisfaction. Similarly, in MRT systems, industrial computers manage everything from ticketing to train operations, ensuring smooth and safe transit for millions of commuters daily.

In the healthcare sector, industrial computers are indispensable. They manage patient registration, medical records, and control diagnostic equipment like MRI machines. These computers must operate flawlessly under strict conditions, ensuring that healthcare professionals have reliable access to critical data and that diagnostic equipment functions correctly, Chaney remarked. The reliability of industrial computers directly impacts patient care and operational efficiency in hospitals.

Retail environments also benefit from industrial computers. For example, the control systems in conveyor belt sushi restaurants rely on these computers to manage orders and ensure timely delivery of food. This integration of technology enhances customer experience and operational efficiency.

Advantech's industrial computers, designed for longevity and reliability, are ubiquitous in these and many other applications. Their ability to operate under harsh conditions and provide consistent performance makes them indispensable in modern life. From public transportation to healthcare and retail, industrial computers are quietly revolutionizing the way we live and work, ensuring that critical systems function smoothly and efficiently.

The Future of Industrial Computing: AI and Edge Computing 

The transition from traditional industrial PCs to AI-driven systems marks a significant evolution in industrial computing, opening new frontiers for efficiency and innovation. Advantech's embrace of AI and Edge Computing has revolutionized predictive maintenance and operational efficiency, providing smarter and more responsive systems, Chaney explains.

AI-enhanced systems now perform tasks that were once reliant on human intervention. For instance, in production lines, AI-driven inspection systems can analyze printed circuit boards (PCBs) with greater precision than human inspectors. By training AI systems to recognize defects, manufacturers achieve higher quality control, reducing the need for manual inspections and minimizing errors. This advancement not only saves time and labor costs but also enhances overall productivity and product reliability.

One of the transformative applications of AI in industrial computing is predictive maintenance. By continuously monitoring equipment health, AI systems can predict potential failures before they occur. This proactive approach allows for timely interventions, minimizing downtime and preventing costly disruptions in operations. For example, AI algorithms can analyze data from sensors embedded in machinery to detect signs of wear and tear, enabling maintenance teams to address issues before they lead to equipment failure.

Advantech's AIoT (Artificial Intelligence of Things) strategy represents the future of industrial computing. By combining the power of AI with the connectivity of IoT, Advantech creates systems that can adapt to changing conditions and optimize performance in real-time. The integration of NVIDIA's Jetson AI platforms enhances the capabilities of these systems, making them more powerful and versatile.

The evolution towards AI-driven industrial computing is not just about improving existing processes but also about enabling new possibilities. From smart factories to intelligent transportation systems, AI and Edge Computing are transforming industries, making them more efficient, responsive, and resilient. Advantech's pioneering efforts in this field are setting the stage for a new era of industrial innovation.

Taiwan's dominance in Industrial Computing 

Taiwan's dominance in the industrial computer industry, commanding a 70% global market share, is a result of strategic advantages and visionary leadership. The country's robust engineering education system has produced a highly skilled workforce capable of driving innovation and technological advancements. This emphasis on quality education and technical training has been instrumental in maintaining Taiwan's competitive edge.

Taiwan's compact geography facilitates rapid prototyping and manufacturing. "Taiwan is a very compact place. You can easily collect all necessary components within two hours' drive," Chaney says. The close proximity of component suppliers and manufacturers allows companies to quickly iterate on designs and bring new products to market. This agility is crucial in the fast-paced world of industrial computing, where technological advancements and market demands evolve rapidly.

Strategic manufacturing decisions also play a pivotal role. "We have manufacturing bases in Taiwan and China," Chaney explains. Companies like Advantech have established manufacturing bases both in Taiwan and China, leveraging cost efficiencies while maintaining high standards of quality. This approach ensures that They can meet global demand while staying competitive in terms of pricing and innovation.

Taiwan's success in the industrial computer industry is also attributed to its strong connections with key global technology providers. Collaborations with leading companies like Intel, NVIDIA, and Microsoft have ensured that Taiwanese industrial computers remain at the cutting edge of technology. These partnerships have allowed Taiwanese companies to integrate the latest advancements into their products, enhancing their appeal and functionality.

However, the geopolitical landscape presents challenges that Taiwanese companies must navigate carefully. The potential for conflict between Taiwan and China necessitates a diversified manufacturing strategy. Advantech, for example, has established new manufacturing sites in Japan and is exploring contract manufacturing in Malaysia. This strategic diversification ensures continuity of supply and reinforces Taiwan's resilience in the face of geopolitical uncertainties.

Taiwan's ability to adapt and thrive in the global industrial computing market is a testament to its innovative spirit and strategic foresight. As the industry continues to evolve, Taiwan's commitment to excellence, rapid prototyping, and strategic partnerships will be crucial in maintaining its leadership position.

For a deeper exploration of Taiwan's dominance in industrial computing and to uncover the fascinating stories and strategies behind this success, tune into our podcast where we delve into the intricate world of technological innovation, market dynamics, and geopolitical challenges that shape Taiwan's role in the global tech landscape.

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