Global technology leader Siemens and the Department of Trade and Industry (DTI) signed a Memorandum of Understanding (MoU) on Friday, June 7, to boost partnership in promoting Industry 4.0 and e-Mobility and explore areas of cooperation to address the needs of the industrial and infrastructure sectors in the Philippines.

Under the new MOU, DTI and Siemens will scale up their efforts, with DTI set to unveil the country’s first state-of-the-art Industry 4.0 Pilot Factory this year. The factory will serve as an experience and learning laboratory, equipped with cutting-edge technologies such as digital twins, industrial software, and automation systems—powered by various technology partners.

In his remarks, Trade and Industry Alfredo E. Pascual emphasized, “Under this renewed partnership, DTI and Siemens will execute bigger and more transformative initiatives, driving our ambitions further and ensuring that we remain at the forefront of industrial innovation.”

In a separate statement, Dr. Thai Lai Pham, President and CEO of Siemens ASEAN noted that an MOU with DTI was signed in 2019 to strengthen collaboration and facilitate technical, policy, and information exchanges in driving the digital transformation of the manufacturing sector.

“I’m proud that this has resulted in a project for our Digital Industries business to conduct a feasibility study to conceptualize DTI’s Industry 4.0 Pilot Factory in 2022. And we’re here today, to sign a second MoU – this time to collaborate to establish this Industry 4.0 Pilot Factory," said the ASEAN Siemens executive. 

On the 4.0 Pilot Factory in the Philippines, the facility is envisioned to showcase digital and automation technologies which manufacturing companies, specifically micro, small and medium-sized enterprises, can access. 

Additionally, Siemens and DTI will explore developing use cases of Artificial Intelligence applied in various sectors, including food and beverage, electronics, semiconductors, chemicals, automotive, smart cities, autonomous buildings, and e-mobility. This sets the stage for establishing the country’s Center for Artificial Intelligence Research (CAIR) this year, focusing on developing AI technologies.

“As we renew our commitment to this partnership, we look forward to the limitless opportunities that lie ahead. We will embark on more transformative initiatives, driving our ambitions further and ensuring that we remain at the cutting edge of industrial innovation. Together, we will explore new frontiers in line with global trends such as the rapid evolution of Artificial Intelligence, along with the pressing need for embracing environmental sustainability,” said Pascual.

DTI has also agreed to work with the technology company to promote sustainability in cities and municipalities in the Philippines, focusing on e-Mobility infrastructure and smart power distribution. This comes after DTI’s launch of a series of initiatives that promote e-vehicles, most notably the Electric Vehicle Incentives Scheme which aims to have four million locally manufactured EVs in the next 10 years.

Pascual noted that since the initial agreement in 2019, the DTI and Siemens have achieved significant milestones, including the successful implementation of the Smart Industry Readiness Index (SIRI), conducting Industry 4.0 capacity-building sessions for manufacturers, and developing a comprehensive feasibility study for establishing an Industry 4.0 Pilot Factory in the Philippines.

With Siemens' expertise, resources, and global reach, Pascual said the partnership will drive meaningful change and propel the Philippines on the path to sustainable development.”

Siemens, Inc. was established in 1992 in the Philippines as a wholly owned subsidiary of Siemens AG, the industrial automation and infrastructure company headquartered in Munich, Germany. It is a technology partner in manufacturing, infrastructure, and transportation. In the industrial sector, it has been supporting the Philippine government in leading manufacturing companies in its digitalization journey.