Current Status and Development Vision

Rail transport offers advantages such as energy efficiency and low pollution, aligning with the global trend toward low-carbon and green transportation. According to 2025 statistics, the projected demand for core electromechanical systems in domestic railway construction (including feasibility studies and comprehensive planning) - covering High-Speed Rail, Taiwan Railways (TRA), and Mass Rapid Transit (MRT, including Light Rail Transit or LRT) - is approximately NT$300 billion. To simultaneously enhance industrial output during railway construction, the government should encourage domestic enterprises to strengthen proprietary technologies and enter the market. However, railway system technology spans multiple hardware and software domains, including rolling stock, signaling, communication, power supply, and trackwork, making technical integration highly complex and market competition extremely intense.

To assist domestic manufacturers in capturing both domestic and international market opportunities, it is essential to advance the independent development of key technologies for rolling stock and signaling systems. Development priorities for domestic products should be proposed from the perspectives of construction agencies implementing core electromechanical systems and operating agencies procuring maintenance spares. Testing and validation capabilities and standards must also be established. Through targeted R&D and construction projects, technical foundations and talent cultivation can be strengthened. Concurrently, using LRT construction as a basis, procurement demands should be gradually consolidated to expand the market, establishing standardized and consistent system specifications. Supporting measures such as demonstration projects, communication platforms, and standard procurement clauses will showcase the effectiveness of domestic production under the Railway System Procurement Operation Guidelines. Local governments will be encouraged to implement these measures, fostering a favorable environment for domestic industry development.

On the software side, advanced technologies such as the Internet of Things (IoT), Big Data, Cloud Computing, and Artificial Intelligence (AI) will be integrated to enhance real-time monitoring and information feedback applications in passenger services, train control, maintenance, and safety. Therefore, there is an urgent need to promote a Smart Railway development framework and strategy, including building a Smart Railway IoT platform. By establishing framework specifications and interface standards for edge, network, and cloud layers, railway and ICT enterprises can be connected, driving the development of the Smart Railway industry. The Ministry of Transportation and Communications (MOTC) has established the Railway Technology Industry Alliance (R-TEAM), bringing together manufacturers from various railway subsystems and ICT fields. R-TEAM integrates insights and practical experience from policy, technology, market, and export perspectives to formulate a railway industry development strategy and blueprint, creating an industrial supply chain. The initial goal is to participate in domestic pioneering LRT system construction. In the medium term, the focus will shift to subsystem development, targeting a 50% domestic content ratio for core electromechanical and trackwork systems, while gradually mastering railway rolling stock design, manufacturing, and integration capabilities to pursue overseas market opportunities.

Development Strategies

Promote Domestic Rolling Stock Manufacturing and Localization of Electromechanical Systems to Advance Railway Technology and Related Industries

Prioritized localization development items for various railway systems will be selected. Currently, R&D is underway for electromechanical subsystems, including rolling stock systems (pantographs, train doors, bogies, railway vehicle design and integration, and Train Control and Monitoring Systems) and signaling systems (LRT signaling, switch machines, and axle counters). For the TRA system, the focus is on developing regional commuter railways, aiming to enhance the performance of rolling stock, signaling/communications, power, and trackwork. R&D subsidy mechanisms and resources will be provided to encourage industry-academia-research teams to participate in R&D. Simultaneously, a comprehensive railway product testing and validation system and national standards will be established, aligned with international standards. Dedicated railway research and testing/validation institutions will be set up to support academic institutions in cultivating railway professionals.

Increase Opportunities and Willingness for Domestic Manufacturers to Participate in Railway Construction and Maintenance Markets

Implement the Railway System Procurement Operation Guidelines and supporting measures to enhance domestic manufacturers' participation in construction projects, and expand the demand for localized maintenance spares. Continuously releasing business opportunities will maintain manufacturer participation, accumulate subsystem development capacity, and cultivate Taiwanese railway electromechanical system integrators (EPC contractors) with system integration capabilities, thereby driving supply chain formation and competing in both domestic and overseas markets.

Developing Smart 4.0 Railways and Associated Industries

Formulate the Smart Railway system architecture and specifications, promoting the integration of Railway Domain Knowledge with Smart 4.0 technologies. Gradually introduce mobile and network communications, IoT, Cloud Computing, Big Data, and AI into railway systems. The strategy also includes securing dedicated railway bandwidth and establishing a communication platform and incentive measures to support Smart Railway industry development.