Localized Supply Chain

Local Procurement

In addition to actively localizing technology and equipment, THSRC has implemented a localized procurement strategy on the premise of ensuring the safety and quality of equipment. This strategy not only decreases reliance on foreign suppliers, but also reduces equipment replacement costs and lead times. Local suppliers of rail transportation industry can take this opportunity to obtain certification of the international railway industry standard quality system, greatly enhancing the image and popularity of the domestic rail transportation industry.

THSRC also actively works with local suppliers in the procurement of labor services and properties. In 2022, the total amount of material purchases conducted by THSRC was approximately NT$2.9 billion, where the amount of procurement from local suppliers accounted for 73.98% of the total amount. Meanwhile, the amount of labor service procurement in 2022 exceeded NT$5.6 billion, of which 90.94% came from local service procurement.

Percentage of Local Procurement

Local Development

In its efforts to promote the growth of local rail technologies and capabilities, THSRC has made multiple visits to suppliers seeking alternative regional materials. In 2022, we successfully completed 127 alternative sourcing cases, after visiting a total of 325 local suppliers. Through joint work with 132 alternative materials-developing suppliers from 2011 to 2022, we were able to save approximately NT$3.33 billion. In addition to expanding our recruitment of manufacturers, THSRC has also broadened our cooperation with industry, government, academia, and research to jointly developed high-speed railway equipment and system innovation technology. Through these efforts, we have contributed to the localization of railway transportation and achieved our goal of "Localization of Domestic Vehicles." Relevant cooperation projects include:

  • 2Since September 2018, we have collaborated with China Steel Corporation on the "Overhead Catenary System (OCS) Maintenance Vehicle Localization" project. Our efforts included integrating equipment component specifications, and pooling supplier resources. As a result of equipment localization, we have effectively reduced maintenance and inventory costs while improving maintenance quality. By October 2022, we had delivered eight OCS maintenance vehicles, and we plan to deliver 4 more in batches by 2024 to achieve to goal of phasing out the old OCS maintenance vehicles.
  • In July 2019, we collaborated with the Industrial Technology Research Institute to develop the "Bogie Running Tester," which has improved maintenance efficiency and bogie reliability. In 2021, we completed the design review for the core system, substrate installation, main body assembly, and test room construction. The operation test, delivery, and acceptance were completed in May 2022.
  • In July 2019, we collaborated with Taiwan Rolling Stock Company in July 2019 to invent the "Diesel-Hydraulic Locomotive." This innovation has enhanced our ability to respond to operational incidents. By the end of 2020, we had completed the design and development of this locomotive and began manufacturing of the body mechanism and control system. Delivery was completed in December 2022.
  • In 2021, the THSRC R&D team achieved success in developing the "Taiwan Design Turnout Control System". By December 2022, a total of 17 pieces of equipment had been installed at Changhua Station, Yunlin Station, and Chiayi Station, gradually replacing the previously used German-made Turnout Switch Control cabinet. Through the optimization of circuit configuration and cabinet design, this new system not only effectively extends the service life of the equipment, but also improves the system's reliability. Our plan is to complete the replacement process within five years, by 2026.
Local Business

To promote the growth of local industries and capitalize on local business opportunities, THSRC has established high-speed rail markets and local production halls throughout its operations in Taiwan. These facilities support the production of local raw materials through concrete actions. In 2022, THSRC cultivated a total of 74 to 80 service sales personnel and generated over NT$105 million in revenue for local merchants.