In response to the global aviation supply chain integration and the intense competition, the domestic aviation industry has committed to technical level elevation (Tier N-1), and has developed high-value system components which require new suppliers to construct a complete supply chain system, thereby increasing the competitiveness of the Taiwanese aviation industry.
The current aviation industry in Taiwan includes about 150 companies, most of which are small and medium-sized enterprises. At the end of 2016, the gross output value of the entire aviation industry exceeded NT$100 billion for the first time. The aviation industry in southern Taiwan possesses the capability of producing aircraft body structure and engine components, and its current value accounts for about 50% of the gross output value of national aviation-related manufacturing. Thus, it is a crucial foundation that supports the development of aerospace industry in Taiwan.
The Traditional Industry Southern Corps has continued to work with the aviation companies and the academia to strengthen the quality of the aviation industry in southern Taiwan. With the support from Kaohsiung City Government’s Economic Development Bureau and Southern Taiwan Science Park Bureau, the Academia-Industry Alliance of the Aviation Industry in Southern Taiwan was established. Through such alliance, the aviation industry, academia, and research in southern Taiwan can be integrated for further partnership and specialty training, thereby improving the competitiveness of aviation industry in southern Taiwan. The Corps aims to develop high-value system components, establish supply chains, and vitalize the industry. It also intends to facilitate the upgrade and transformation of the metal processing industry as an engine to elevate the value of the entire industry.
The national defense industry is critical for both national security and economic development. The Ministry of Economic Affairs has formulated the development strategies and subsequent promotion work for the policy to manufacture advanced trainer planes domestically. The Ministry of Economic Affairs will leverage the research and development resources from relevant governmental agencies to help National Chung-Shan Institute of Science and Technology, Aerospace Industrial Development Corporation, and airline companies to develop key technologies and establish production supply chains for the advanced trainers project. Therefore, a complete supply chain system involving design, manufacturing, assembly, and testing will be constructed for domestic aircraft production, which will in turn stimulate the development of Taiwan's aerospace industry.