Green Products and Innovation
Innovation Management and Sustainable Production
USI and its subsidiaries realize that “Innovation” is the key for continuous growth and considers the Intellectual Property (IP) as one of our most important assets. We not only treasure our own IP but also respect all the IP around the world. We grasp the intelligent trend and actively enhance Smart Manufacturing and Continuous Improvement Programs (CIP) capabilities to promote enterprise competitiveness, team work and corporate image.
IP in USI is considered as responsibility of each employee, we not only endeavor to lower the risk of infringement but also encourage the innovation activities internally. Company provides the greatest benefit to all of our stakeholders through the most effective IP management, and devotes itself to create an encouraging environment and management system to protect our IP:
- Ensure that core technologies are protected by laws and regulations related to intellectual property
- Construct an internal network database to facilitate the sharing of intellectual property knowledge
- Promote R&D willingness through incentive programs
- Implement intellectual property training programs to enhance the consensus among all employees to participate
USI has 2,728 R&D employees, accounting for 11.47% of the employee population and invested CNY 2.034 billion, accounting for 2.97% of the revenue in 2022. The Company continues to cultivate and improve the ability of design and development personnel to maintain a stable and sustainable development in the intensity of research and development.
R&D Spending and Intensity:
To encourage research, development, and innovation, USI set up Patent Management and Incentive and regular R&D competitions. After the project has been verified, employees that proposed the patents will be financially rewarded and publicly recognized. By the end of 2022, the cumulative number of effective granted patents stood at 740, and the cumulative number of approved patent applications reached 1,501. The patents obtained in the last four years are shown in the figure.
USI's Smart Manufacturing Program has adopted the concept of Industrial Internet of Things (IIoT) and plans the development of the Industry 4.0 Smart Manufacturing Program in line with the electronic manufacturing industry, and this is called the 5-Star Industry 4.0 Smart Manufacturing. In 2022, we successfully introduced 70 automated manufacturing projects, saving a total of CNY 295.4 million in labor costs, with an average of 2.85-Star Facilities, including the highest level of automation at the 3.7-Star Jinqiao Facility.
By 2023, the Company plans to upgrade all of its Industry 4.0 Facilities to 3 to 4 stars, with an average of 3.2-Stars, and to upgrade four of its Facilities to 5-Star Lights Out Factories by 2025 to achieve fully automated production.
USI's Industry 4.0 Automation Technology
- Automation equipment communication network that supports 5G and 4G
- Automated Material Handling Systems (AMHS)/Auto Guide Vehicle (AGV) based production workshop for Work-In-Progress (WIP) transmission system
- Fully automated 6-sided product inspection system/unmanned testing workshops with fully automated robot arms
- Real-time environmental monitoring and alarm system with remote access instrument boards
- Artificial Intelligence (AI) online SPC is used for process control of key production equipment
- Production equipment data automation applications
CIP proposes improvement plans for the productivity, process, quality, efficiency, equipment, software, hardware, energy conservation and CO2 emission reduction, automation, safety...etc., and have cost saving benefits. Its purposes are as follows:
- Build a platform to realize ideas and approve employees' endeavors and awards
- Encourage employees devoting to continuous improvement
- Enhance teamwork and enterprise competitiveness
After the 2022 annual performance examined and approved by Corporate Review Committee (CRC), the actual tangible cost saving was CNY 119.3 million. The saving cost accounted for 0.27% of revenue and a total of CNY 169 thousand has been reward employees for their commitment to continuous improvement.
Proposed New Cases of CIP:
In response to the issue of climate change, we have included Energy Saving and Carbon Reduction in the rating system and the type of key project to promote relevant green proposals. In 2022, there are two Energy Saving and Carbon Reduction projects awarded.
Facility | Ranking | Project Name | Key Project Benefit |
---|---|---|---|
Jinqiao | Bronze | Clean Dry Air (CDA) Recycling and Energy Saving Improvement | Splitting the nitrogen production air discharge line into two lines, allowing the surplus nitrogen production CDA to be fully utilized to reduce the load on the existing production demand of the air compressor and thus saving energy, saving 1,253,977 kWh of electricity annually and reducing carbon emissions by 1,014 metric tonnes, within estimated annual savings of CNY 606,467. |
Nantou-NK 1 | Bronze | Factory Facilities Optimization and Improvement | By optimizing measures such as integration of exhaust gas, reduction of dryer cooling, and stable air supply, we can reduce electricity expenses to achieve energy and carbon savings, saving 593,637 kWh of electricity annually and reducing carbon emissions by 302 metric tonnes, within estimated annual savings of CNY 344,039. |