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Taiwanese Firms Cheng Tai and Syntec Ally for AI, Robotics, and EV Markets

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Taiwan's Cheng Tai Group and Syntec Technology have signed a strategic cooperation memorandum to focus on AI, robotics, and electric vehicles.
  • The partnership aims to target markets in ASEAN, India, and China, with Cheng Tai projecting revenue of NT$20 billion.
  • Both companies will deepen collaboration in machine tools, automation, and smart manufacturing, leveraging Syntec's expertise in controllers and automation.

Taiwanese industrial giants Cheng Tai Group and Syntec Technology have forged a strategic alliance, signing a memorandum of understanding to jointly pursue opportunities in artificial intelligence (AI), robotics, and electric vehicles. The collaboration, inked in Taichung, signals a significant push by both firms to enhance their offerings in the smart manufacturing sector.

Taiwan's machine tool market faces a situation of 'lid above, plate below,' with competition from high-priced Japanese products and general Chinese models. We must transform.

— Yang De-huaCheng Tai Group Chairman Yang De-hua explained the strategic imperative for the alliance, highlighting the competitive pressures in the machine tool industry.

The partnership is primarily focused on penetrating key international markets, specifically targeting the ASEAN nations, India, and the Greater China region. Cheng Tai Group, a prominent player in the machine tool industry, anticipates this venture could significantly boost its revenue, projecting a target of NT$20 billion. This move comes as the Taiwanese machine tool sector faces intense competition from high-end Japanese products and lower-cost Chinese alternatives, necessitating a strategic shift towards higher-value, integrated solutions.

We need to build two legs to stand on. Machine tool manufacturers must transition from supplying single machines to providing integrated solutions.

— Yang De-huaYang De-hua elaborated on the need for diversification and comprehensive solutions, positioning Syntec as a key partner.

Cheng Tai and Syntec aim to combine their strengths in machine tools, automation, and robotics to deliver intelligent manufacturing solutions. Syntec, recognized for its advanced controllers and automation technology, is seen as a crucial partner in this endeavor. The companies plan to offer integrated solutions that are easier to implement and provide a strong return on investment, moving beyond single-machine sales to comprehensive system provision.

We can meet customer needs and provide one-stop solutions. Customers require entire factories and production lines to be interconnected.

— Cai You-kengSyntec Chairman Cai You-keng emphasized the company's ability to deliver integrated and standardized solutions.

Both firms are also looking to expand their global footprint. Syntec is planning to establish a factory in Kuala Lumpur, Malaysia, by 2027 and is investing NT$200 million to build a plant in Bengaluru, India, expected to be completed by the end of this year. Proximity of operations in key markets like China, Malaysia, and India is intended to enhance customer confidence and provide localized support, further solidifying their competitive edge.

It's a bit tough to fight one-on-one, but we can fight two-on-one or three-on-one.

— Cai You-kengCai You-keng described the collaborative advantage of the partnership in promoting their products, especially in overseas markets.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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