Itochu, a major Japanese trading house, is embarking on a smart city project in Tainan, Taiwan, aiming to trial advanced AI systems for transportation and energy management. This initiative, marking Itochu’s first official participation in an overseas smart city project, aims to set the stage for broader business opportunities.
Itochu emerged as the sole contract winner for the smart city project in the Shalun area, spearheaded by the Tainan government and other stakeholders. The initial contract is valued at NT$10.8 million ($332,000), with plans to roll out systems on a trial basis by the end of October. The Taiwanese government has allocated NT$10 billion for AI-related projects, and Itochu is poised to secure a portion of this funding.
In collaboration with Taiwanese IT firm Accton Technology and National Cheng Kung University, Itochu will deploy AI to optimize routes for electric buses in Tainan. This system will analyze passenger reservations made via apps and other means, enhancing efficiency. Itochu plans to introduce a similar system that its subsidiary, Itochu Techno-Solutions, trialed in Kawasaki, Japan.
Additional systems to be installed include AI-driven tools to measure pedestrian flow using camera-equipped poles and digital signage, as well as solar power generation setups for small shops. Itochu is also exploring a rewards system to incentivize energy conservation, allowing consumers to earn points for eco-friendly actions like bicycling, which can be exchanged for shopping discounts.
The company will further develop a central data management system for wind and solar power generation. Leveraging its expertise in real estate development and digital technology, Itochu aims to contribute significantly to Tainan’s urban development.
Tainan, a city known for housing Taiwan Semiconductor Manufacturing Co. (TSMC) chip plants, hopes to benefit from Itochu’s expertise in digital technology and urban development. This project represents a strategic move for Itochu as it seeks to expand its footprint in the smart city sector, utilizing AI and sustainable energy solutions.
