Smart manufacturing is one of the most important development trends in manufacturing industry. Referring to the architecture of industrial internet of things (IIoT), this article discusses and recommends the machining equipment industry including the small and medium enterprises (SMEs) to target at the development of "the innovation of networking technology and application" and "the innovation of service value creation". It will also introduce the "Smart Manufacturing Network Value-added Industry Alliance" established by Industrial Technology Research Institute (ITRI). This Alliance aims to promote the standardization and developing technology of smart manufacturing, and effectively assist SMEs to develop and use the service of smart manufacturing.