Department of Industrial Technology (DoIT) Promotes AI-Driven Upgrades in Machine Tools; ITRI Bolsters Industry Entry into Bombardier’s Aerospace Supply Chain and High-End Markets

The "Tech Innovation Pavilion" of the Department of Industrial Technology (DoIT), Ministry of Economic Affairs (MOEA), officially debuted at the 2026 Taiwan International Machine Tool Show (TMTS) from March 25 to March 28. In response to shifting global geopolitics and supply chain restructuring, the MOEA has integrated the R&D capabilities of research institutes to focus on the intelligent transformation of the machine tool industry. At this event, ITRI showcased 12 pivotal AI-driven technologies for high-end machine tools. These innovations have been successfully implemented by prominent listed companies and end-user facilities, including industry leaders such as KL-Manufacturing, Apex Tool, Kao Fong Machinery (KAFO), Chin Fong Machine, and Phison Electronics.

Among the highlights, the "Intelligent Inspection for Machine Tool Assembly Quality" utilizes AI to perform automated quality determinations within five minutes, significantly enhancing product stability and driving a 20% increase in orders for vertical machining centers in the U.S. market. Additionally, the "Edge AI Preventive Maintenance and Multi-Sensing Solution" has helped high-end servo presses increase their added value by 20%, successfully penetrating the supply chain of major commercial aerospace manufacturers. This demonstrates the tangible achievements of Taiwan’s machine tool industry in entering international high-end markets.

At the 2026 TMTS (Taiwan International Machine Tool Show), the Tech Innovation Pavilion of the Department of Industrial Technology (DoIT), MOEA, showcases 12 pivotal high-end machine tool technologies. Front row (from left): Chuan-fu Wu, General Manager of Apex Tool; Chu-sheng Hu, Vice President of ITRI; Zong-hsun Tsou, Deputy Director General of DoIT, MOEA; Chien-hsun Li, Acting General Manager of PMC; and Chen-feng Lo, CEO of T-Global Technology.

Tsou Zong-hsun, Deputy Director General of DoIT, stated that the global machine tool industry is at a critical turning point due to geopolitics and supply chain realignment. Taiwanese manufacturers must accelerate the adoption of AI to strengthen product precision, quality, and system integration. DoIT has designated "AI-Driven Manufacturing Upgrades" as a primary direction for specialized R&D subsidies, helping the industry shift from price competition to value competition. This strategy further enables entry into high-end application markets such as aerospace, semiconductors, and automotive, reinforcing Taiwan's pivotal role in the global manufacturing supply chain.

To accelerate industrial upgrades, DoIT has invested nearly NT$10 billion in specialized R&D resources over the past four years to promote the development of innovative AI software-hardware integration. In 2025, these efforts contributed to a production value exceeding NT$2.4 billion. Furthermore, through the "AI Application Leap Program," the exquisite craftsmanship of master technicians is being digitized into replicable and transferable core competencies. This helps the industry address labor shortages and talent gaps while allowing domestic equipment to reach parity in precision and intelligence with manufacturing powerhouses like Germany and Japan.

ITRI co-exhibited with the  Precision Machinery Research & Development Center(PMC). PMC showcased the "High-Speed Direct-Drive Powered Turret," which doubles rotational speeds and improves overall processing efficiency by approximately 30%. It maintains thermal stability during long-term high-speed operation, ensuring superior surface quality. Optimized cooling channels also enable sustained high-speed cutting for small-diameter machining.

Key highlights of ITRI’s intelligent machine tool technologies include:

1. Intelligent Inspection for Machine Tool Assembly Quality: AI Analysis for Rapid Quality Upgrades

Precision and performance stability are critical metrics for machine tools. While precision can be verified via pre-shipment measurements, rapid testing for long-term stability has historically been lacking. The MOEA now provides AI-automated assembly quality determination technology, which completes pass/fail assessments within five minutes. This technology has assisted Kao Fong Machinery (KAFO) in its main product lines, extending warranties from one year to three years and prompting its U.S. distributor, INNOVA, to increase orders for vertical machines by 20%, generating over NT$50 million in production value.

ITRI has developed the "Intelligent Inspection for Machine Tool Assembly Quality," which enables automated AI determination within five minutes. This technology effectively enhances pre-shipment stability and has driven a 20% growth in orders for vertical machines in the U.S. market.

2. Generative AI (GAI) Solutions for Production Lines: Virtual Master Technicians Accelerate Prototyping

To address talent shortages, ITRI developed the "GAI Production Line Implementation Solution." AI learns the processing logic and experience of veteran masters to simulate prototyping, saving approximately 40% in sampling costs. Engineers can interact with the AI in real-time for recommendations, reducing equipment downtime by about 20%. This has been deployed at KL-Manufacturing (Taiwan's largest commercial vehicle parts processor) and led Apex Tool (a global leader in industrial wrenches) to invest NT$100 million in building an AI-intelligent production line, with an estimated output increase of NT$260 million.

ITRI’s "GAI Production Line Implementation Solution" enables AI to learn the processing logic and experience of veteran master technicians. By using AI to simulate prototyping in advance, the solution can reduce overall prototyping costs by approximately 40%.

3. "Pre-emptive Diagnosis" via AI: Strengthening Resilience in Machine Tools, Semiconductors, and Wind Power

Unplanned downtime leads to production halts, scrapped products, and high maintenance costs. ITRI combined 30 years of vibration monitoring expertise with AI algorithms to create automated health monitoring and diagnostic software. With a prediction accuracy of over 90% and a false alarm rate below 10%, it enables "painless maintenance." This technology has extended the lifespan of semiconductor vacuum pumps by 50% and drilling tools by 30%. Notably, this technology has been finalized for the 2026 Edison Awards (often called the "Oscars of Innovation").

ITRI’s "Equipment Prognostics and Health Management (PHM) System" provides fully automated software for equipment health monitoring, prediction, and diagnosis. It achieves a prediction accuracy of over 90% and a false alarm rate of less than 10%, facilitating "pre-emptive prediction and painless maintenance."

4. Multi-Sensing AI Diagnostic Technology: Real-time Precision Optimization for Presses

To meet the stringent precision requirements of the aerospace and automotive sectors, ITRI and Phison Electronics collaborated on the "Edge AI Preventive Maintenance and Multi-Sensing Solution." By capturing heterogeneous sensor signals, the system identifies assembly gaps and motor abnormalities at the edge using aiDAPTIV+ technology. The anomaly detection rate exceeds 95%. The system also provides real-time feedback for stamping processes, keeping molding curve errors below 2% and precision within 10 microns. This has been applied to high-end servo presses by Chin Fong Machine, helping them enter the production lines of global commercial aerospace giant Bombardier.

In technical collaboration with Phison Electronics, ITRI developed the "Edge AI Preventive Maintenance and Multi-Sensing Solution," which strengthens and doubles the real-time precision optimization of the stamping process.