TAIPEI (Taiwan News) — OEM PC manufacturer Compal's pursuit of business diversification has identified smart healthcare technology as the company's next growth engine.
Compal Senior Vice President Eric Peng (彭聖華) spoke with CNA recently about the challenges and opportunities the company faces in transitioning from OEM production to healthcare, detailing the company's latest developments in AI medical devices. Peng said the biggest challenge is the healthcare industry's emphasis upon quality and service, rather than the cost-conscious approach of the traditional OEM electronics industry.
Peng said the Taiwanese company made its first investment in biotechnology a decade ago, particularly in cancer immunotherapy research. However, the medical industry is a highly vertical industry, with each department requiring specialized expertise and significant investment in marketing new products.
The development cycle for medical products is also much longer than in the electronics industry. Peng said some medical devices can take up to five years to finish and require certification from regulatory agencies like the US Food and Drug Administration, resulting in a high-risk investment.
Integration is also challenging, as Compal's medical team requires experts from multiple fields, including electrical engineering, software, AI, chemistry, biology, medical engineering, and regulatory compliance. Peng admitted that facilitating communication and collaboration among personnel from diverse backgrounds requires significant time and effort.
Despite these challenges, Peng said there are enormous opportunities in smart medicine, especially given the rising cost of global healthcare and a rapidly aging population that is leading to higher social costs. Experience with epidemics like COVID-19 demonstrates the accelerating rate of disease mutation, necessitating governments to invest more resources in strengthening basic healthcare capabilities.
Many new products
He believes that Compal can leverage its expertise in hardware manufacturing and software development to create smart healthcare products that incorporate AI technology. For example, Peng referred to Compal's recently developed handheld ultrasound device, which is positioned between a high-end diagnostic device and an affordable device for smaller clinics. Peng said this product is well-suited for use in ambulances and rural medical outreach, meeting the practical needs of doctors with limited resources.
Compal has also collaborated with Chi Mei Hospital to develop an AI-powered automated cardiovascular angiography system, allowing clinicians to annotate signs of disease on a patient's cardiovascular images. Through AI-assisted functionality, the system accelerates the location and severity of disease.
Peng said that Compal's ventilator also received certification last year and has sold dozens of units in the past six months. The company is actively tracking user feedback and plans to expand into Japan and the US.
Regarding hearing aids, Compal's products incorporate Bluetooth technology, effectively resolving interference issues between traditional hearing aids and mobile phones. Thousands of units have already been sold, and the company has received many positive reviews.
Compal, in collaboration with a client, has also developed a smart massage bed equipped with two robotic arms that can offer massages from the shoulders to the feet. The onboard camera detects the user's body curves and automatically adjusts the massage force and pattern based on personal preferences.
Peng said the smart massage bed has been introduced to hotel chains and high-end fitness centers in the US. It uses a membership reservation system and charges US$60 (NT$1,800) for a 30-minute session. This is competitive with the price of traditional massage, as the company's goal is to replace professional masseuses in the rehabilitation and post-exercise markets.
Developing AI ecosystem
In addition to hardware devices, Compal is also developing information platforms and investing in cutting-edge technology research and development, demonstrating its commitment to building an overall healthcare ecosystem.
The "iCare" platform serves over 3,000 long-term care and residential care facilities across Taiwan, assisting with complex administrative tasks such as uploading data to the National Health Insurance Bureau. Peng said that after five years of development, the platform has achieved a market share of approximately 70%, making it an indispensable tool for long-term care and residential care facilities.
To address bottlenecks in AI applications in medical imaging and pathology, Peng proposed a new business model where Compal will establish a cloud-based AI medical platform, allowing technology partners to upload algorithm models. Compal will then promote these models to hospitals, charging monthly or project-based fees, significantly lowering the barrier for hospitals to adopt AI.
Currently, Compal's medical business accounts for less than 1% of the company's revenue, but the company has set an aggressive target of 20% to 50% annual growth. Peng said such aggressive growth targets may be achieved through mergers and acquisitions, as the company is actively working with the medical community to develop matchmaking capabilities and prepare for industry integration.
