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Key Industries

通訊

  • 日期:2019-11-01
通訊產業

Source: Industrial Development Bureau, MOEA
Last Updated on: 2019/09/30

 

I. Policy Initiatives

1.Digital Nation & Innovative Economic Development Program (DIGI+

Taiwan launched the Digital Nation & Innovative Economic Development Program (DIGI+) at the end of 2016 to increase the penetration of digital services from 25.8% to 80%, and thereby realize Taiwan as a “smart nation.”

2.Developing the network communications industry comprehensively

The Communication Industry Development Project Office, Industrial Development Bureau, Ministry of Economic Affairs is the government think tank for comprehensively developing the network communications industry, and guides industries to invest in the development of integrated solutions. The office integrates resources and links startups and international platforms to develop innovation capabilities and talents in hopes of enhancing the competitiveness of Taiwan's communications industry.

 

II. Overview of Industrial Development

1. Production Value

Being the home to the manufacturing systems of several communications products, Taiwan is one of the key players in the global communications industry. The output value of Taiwan's communications industry was NT$1.4 trillion in 2018 (excluding mobile phone OEM services/EMS). Based on the output value of various products, the output value of smartphones and communication services are relatively high, accounting for 29.2% and 28.2% of the overall communications industry's output value, respectively. Other major products include WLAN, Cable CPE, thernet Switch, and IP STB. Their output value has steadily grew at between 2.2% and 4.5% in 2018. 

Figure 1  Production value of Taiwan's communications industry in 2015-2019

2. Industrial Clusters

(1)Northern Taiwan

Generally speaking, the communications industry cluster is concentrated in northern Taiwan, especially the mobile phone industry. Mobile phone IC manufacturers, other manufacturers, branding companies, and telecom operators are all headquartered in northern Taiwan. The head offices of these companies are concentrated in the Neihu Technology Park, Hsinchu Science Park, and Taoyuan, such as Accton, Sercomm, Wistron NeWeb, and Chunghwa Telecom.

(2)Central and Southern Taiwan

Communications companies in central Taiwan are mainly automobile communications electronics and consumer electronics manufacturers. Even though southern Taiwan has the Kaohsiung Software Technological Park and Southern Taiwan Science Park, the number of communications companies is still unable to match those in northern Taiwan.

III. Investment Opportunities

1. Accessing the ICT industrial cluster in Taiwan

Taiwan's communications companies have manufacturing and global logistics abilities, and have an advantage in network chips, parts and components, touch panel, and system integration. The industrial chain is complete. At present, several major IC manufacturers, such as Broadcom and Qualcomm, have established offices or R&D and design centers in Taiwan, creating new business opportunities.

2. Utilizing Taiwan's advantages to develop 5G business models

Taiwan has an advantage in the development of key IC, modules, and terminal products.. Foreign companies can utilize Taiwan's advantages and jointly develop 5G business models with Taiwanese companies, especially in the integration of AI, IoT, and AR/VR technologies, which will further develop business opportunities in vertical fields of application.

IV. Investment Incentives

1. Tax and Tariff Incentives

(1) Business income tax rate in Taiwan is 20%.

(2) Up to 15% of the company's R&D expenditures may be deducted from its corporate income tax that year.

(3) Imported machinery that local-manufacturers cannot produce is eligible for duty-free treatment.

(4) Royalty payments to foreign companies for imported new production technologies or products that use patents, copyrights, or other special rights owned by foreign companies is, with the approval of the Industrial Development Bureau, MOEA, exempt from the corporate income tax.

2. R&D Subsidies

(1) Global Innovation Partnership Initiatives: Subsidies are available for up to 50% of total spending by foreign enterprises on the establishment of R&D centers in Taiwan.
(2) Integrated R&D Program: Subsidies are available for 40% to 50% of total project cost for the integration of key and cross-sector technologies. 
(3) Industrial Upgrade & Innovation Platform Program: For companies having R&D teams in Taiwan, subsidies are available for 40%-50% of project funding for projects that conform to government programs and up to 40% of funding for projects generated by the applicants themselves.

V. Major Foreign Investors in Taiwan

1. Collaboration in emerging fields of application

(1) HPE is working together with the Taoyuan City Government in deploying the new HPE Edgeline IoT smart street light solution, which uses an IoT real-time street light monitoring platform to increase energy efficiency and reduce energy consumption.
(2) Europe's multinational telecom operator Vodafone selected Accton's subsidiary Edgecore Networks, Alpha Networks, and Delta Electronics' subsidiary Delta Networks to develop the disaggregated cell site gateway (DCSG).

2. Collaboration in R&D

(1) Major IC manufacturer Broadcom established an IPO office, R&D and design center, and head office in Taiwan, creating collaboration opportunities through technology exchanges and IC OEM.
(2) Nokia has established an experimental site and verification platform in Taiwan for emerging communications technology applications, and is conducting trials of vertical application solutions (such as Internet of Vehicles, smart meters, and industrial network) together with domestic companies.

 

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