As the global economy regains momentum, 2025 is shaping up to be a game-changing year for AI. The rapid evolution of AI technology is not only transforming how we live and work, but also propelling the semiconductor industry into an entirely new era. Taiwan, a cornerstone of the global semiconductor supply chain, stands at the forefront of this revolution. With cutting-edge process technologies, world-class foundry capabilities, a robust industrial ecosystem, and efficient supply chain management, Taiwan delivers high-performance, low-power chip solutions that are tailor-made for the complex demands of AI and the Internet of Things (IoT). These strengths are fueling a wave of innovation across sectors, as companies actively invest in R&D and innovative applications to grasp market opportunities.
With the support of the Industrial Development Administration, MoEA, the Institute for Information Industry (III) has long championed innovation in IoT, and its Taiwan IC-based smart modules are a prime example of that commitment. Built around locally produced MCUs, these modules seamlessly combine wireless communication, sensing technologies, and edge computing power. Each module is tailored for different applications—modular, scalable, and future-ready. So far, the III has rolled out more than 10 smart modules, helping AIoT concepts leap from lab to factory floor. By leveraging Taiwan’s manufacturing muscle, the III is helping industries accelerate product commercialization, drive intelligent upgrades, and sharpen their competitive edge on the global stage.
From ICs to Edge AI: HUB 8735 Ultra
As AI and IoT merge, the demand for modules that combine image recognition with edge computing has skyrocketed. In response to such market demands, the III has launched its latest smart module—HUB 8735 Ultra. Built around Realtek’s Renesas Ameba RTL8735 chip with a built-in NPU AI engine, the module delivers high-speed, precise image processing and powerful AI model acceleration. It supports dual-band Wi-Fi (802.11 a/b/g/n) and Bluetooth, enabling reliable, low-power wireless connectivity. From smart homes to industrial IoT systems and next-gen factories, HUB 8735 Ultra is a compact yet powerful solution designed for real-world edge AI applications. In addition, HUB 8735 Ultra supports a range of pre-trained AI models that run directly on the device, making it an ideal tool for hands-on AI education as well as rapid integration into product designs, helping developers accelerate edge AI deployment. Its core module, designed and manufactured solely by Taiwan-based companies, has been certified by NCC, FCC, and other international wireless safety standards. To further support AI innovation, HUB 8735 Ultra incorporates Taiwan-developed image sensing IC solutions tailored for emerging meta-application needs. It comes with four versatile lens module accessories: JX-F37P standard and short focal-length lenses from Silicon Optronics (SOI), and PS5268 standard and wide-angle lenses from PixArt Imaging. These options are designed to enhance development flexibility and usability—further boosting the global competitiveness of Taiwan’s IC ecosystem.?
(Source: Institute for Information Industry (III))
(Source: Institute for Information Industry (III))
As part of its efforts to promote Taiwan’s AIoT innovations, the III has established a set of smart IC module standards to streamline the entire development-to-deployment pipeline—from demand discovery and technology development to real-world application. This comprehensive framework ensures that cutting-edge solutions can be efficiently introduced into key sectors, driving smart transformation and industrial upgrading across the board. In the sections that follow, we will highlight two real-world case studies showcasing how HUB 8735 Ultra is actively supporting smart transformation across different industries.
1. HUB 8735 Ultra as the AI Gatekeeper of Water Quality
(Source: Institute for Information Industry (III))
Heavy metal wastewater treatment remains a major environmental challenge for local governments. Traditionally, industries have relied on a combination of sensors and manual inspections to monitor water quality. However, this approach is both labor-intensive and costly—sensors require monthly cleaning and recalibration to ensure accuracy, and constant exposure to harsh environments leads to frequent replacements. What is more, the tedious, error-prone process of manually transcribing sensor data several times a day also leads to a system strained by inefficiencies, management burdens, and compromised real-time responsiveness.
To address these limitations, Prophet has developed a next-generation smart wastewater monitoring solution powered by HUB 8735 Ultra. This new system replaces frequent manual inspections with automated, remote image-based monitoring. Building on the module’s edge AI capabilities, Prophet created an image recognition model that analyzes visible indicators—such as color, turbidity, and surface bubbles—to evaluate water quality in real time. These visual cues are then automatically matched against regulatory discharge standards.
Compared with the traditional method, the smart system can provide instant, objective and quantifiable judgments, effectively improving overall management efficiency and risk warning capabilities. Now, the wastewater treatment sites only need to be inspected once every four hours, reducing inspection hours by 75%. During the rest of the time, water quality changes and abnormal notifications can be easily monitored through the remote platform.
(Source: Institute for Information Industry (III))
Originally known for its sand source identification technology used in river dust control, Prophet pivoted its expertise to wastewater monitoring after a high-profile fish die-off incident sparked public concern over industrial pollution. Demonstrating keen environmental awareness and agile innovation, the team quickly adapted its AI tools to help prevent such crises in the future. Despite operating in a space dominated by AI giants, this nimble team chose to focus on pressing local environmental challenges. By applying lab-developed technologies to real-world problems, and through cross-domain collaboration, Prophet is pioneering a new model of environmental management—one that is intelligent, real-time, and precise all at the same time.
2. Powering the Smart Factory Revolution with HUB 8735 Ultra
Manufacturing has long been an important component of Taiwan’s economy. Among its many sectors, the power distribution panel industry alone includes around 200 manufacturers and generates an output value of NT$15 billion. Yet, the production process, especially tasks like fabricating conductive copper busbars, remains highly labor-intensive and thus time-consuming. Since 2023, smart automation solutions have begun reshaping this landscape, introducing smarter and safer production practices.
One standout example is Ding Cheng Enterprise, a company specializing in the production of power distribution panels, transformers, and power boxes. Faced with persistent labor shortages, low efficiency, inconsistent quality, and a rise in workplace injuries, the company struggled to scale—even with a full order book. The turning point came when management recognized a simple truth: “Machines don’t get tired, but people do.” That mindset became the catalyst for transformation. In fact, Ding Cheng wishes to not only improve efficiency and quality, but also take meaningful steps to ensure the safety and well-being of all its employees.
(Source: Institute for Information Industry (III))
HUB 8735 Ultra integrates Taiwan IC-based wireless communication, AI-powered image recognition, and robotic arm control to automate key machine operations—such as detecting the status of extraction trays and monitoring material discharge. This combination has enabled Ding Cheng to create a compact “mini information room,” allowing real-time production monitoring, automated operations, and visualized environmental data. The result is a smarter, safer factory floor—enabling productivity tracking, fault prediction, quality enhancement, and a significant reduction in workplace accidents. It also helps mitigate labor shortages while doubling production capacity and increasing annual order volume by 1.8 times.
(Source: Institute for Information Industry (III))
The successful transformation of Ding Cheng stands as a compelling showcase of Taiwan’s semiconductor and software-hardware integration policies in action. By leveraging AI image recognition and domestically developed IC technologies, the company has bridged critical labor gaps while boosting the digital resilience of its operations. This achievement reflects the power of local technology integration and cross-sector collaboration—positioning Ding Cheng as a model case for the smart transformation of traditional industries, and laying the groundwork for Taiwan’s move towards high-value manufacturing and fully intelligent factories.
As global AI technologies continue to evolve and applications rapidly diversify, Taiwan is stepping up its pace in deploying innovative AIoT solutions. Backed by a robust semiconductor supply chain, strong domestic IC capabilities, and seamless software-hardware integration, we are more than ready to bring AI to life across industries. From Prophet’s AI water quality monitoring and data-driven inspection standards to Ding Cheng’s use of AI image recognition for production line automation, these real-world applications highlight the flexibility and implementation strength of Taiwan’s IC smart modules in both environmental management and smart manufacturing domains.
For more information, please visit our?website?or email Rodney Tai at? rodneytai@iii.org.tw (Advertisement by Industrial Development Administration, MoEA)
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