The information and digital technology industry is the growth engine underpinning the government’s six core strategic industries initiative.
Few concepts are more in tune with the zeitgeist of this decade than that of artificial intelligence (AI). Once the realm of lofty works of science fiction, the technology is becoming an increasingly prominent part of daily life, featuring hardware like drones and self-driving cars as well as in software such as facial recognition systems and virtual voice assistants. No matter the form, AI is radically changing the way governments and businesses operate, with applications in computing, learning, sensing, reasoning and visual recognition promising to boost efficiency, productivity and profits.
Given its central role in the digital transformation of society, AI, defined as the simulation of human intelligence in machines, is one of the focus areas for the government’s promotion of the information and digital technology industry alongside other revolutionary technologies including 5G, Internet of Things (IoT) and semiconductors.
“Such technologies impact innovation in all sectors of the economy by enabling new products, services and business models,” said Tsai Zse-hong (蔡志宏), executive secretary of the Executive Yuan’s Office of Science and Technology (OST). “They’re one of the main forces driving industrial transformation.”
A scientist at ITRI’s Sub-THz System Laboratory for wireless communication tests chip performance. (Photo by Chen Mei-ling)
Forward Looking
The ability to unleash Taiwan’s economic and social potential is why information and digital technology is one of the key planks in President Tsai Ing-wen’s (蔡英文) six core strategic industries initiative. According to OST’s Tsai, the government is behind several projects designed to advance Taiwan’s digital ecosystem by leveraging its strengths in information and communication technology (ICT). The dividends are already clear: Taiwan ranked 12th among 141 economies in the 2019 edition of the Global Competitiveness Report issued by Geneva-based World Economic Forum (WEF) and was also lauded as among the top four super innovators by WEF alongside Germany, the U.S. and Switzerland in 2018 and 2019.
WEF additionally praised Taiwan’s competitive advantages as key to its success in managing the COVID-19 pandemic. The report identified four common features helping countries combat the disease and paving the way for revival and transformation in the post-pandemic era: economic digitalization and digital skills; safety nets and financial soundness; governance and planning; and health system and research capability.
“COVID-19 has changed many of our daily habits—from how we interact with others to how we work—increasing reliance on digital technology,” Tsai said. “Now’s the right time to include digitalization and ICT into our industrial development plans to facilitate Taiwan’s transformation into a digital nation.”
In this regard, AI is considered a cornerstone of the country’s industrial strategy. AI chipsets, designed to process complex and large sets of instructions such as those for machine learning algorithms, can deliver more performance compared to conventional processors and are thus in high demand for a wide variety of applications, Tsai said.
Engineers at ITRI perform rigorous on-road testing of an autonomous electric vehicle. (Photos by Chen Mei-ling)
Cutting Edge
AI is having a notable impact on the growth of the semiconductor industry through helping with the design of increasingly complicated processes. For this reason, Hsinchu City-headquartered Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, has already committed itself to spending US$100 billion on related R&D as well as capacity expansion over the next three years. To consolidate the leading position of the country’s semiconductor industry, the government has initiated a coordinated effort to develop the core technologies for AI chips.
Establishment of the AI on Chip Taiwan Alliance (AITA) in 2019 under the guidance of the Ministry of Economic Affairs (MOEA) and OST is a prime example of government-industry-academia collaboration to power the global AI revolution. The alliance consists of more than 110 integrated circuit design, manufacturing and packaging houses, software companies, system integrators, research institutes and universities pledging to build an AI innovation ecosystem.
AITA’s goal is to help semiconductor companies shorten the R&D time required for AI chips by at least six months and to substantially reduce costs. To this end, the MOEA supports alliance members for related research.
“AI chip design involves complicated technologies and significant capital investment,” AITA Vice Chairman Chang Shih-chieh (張世杰) said. “The alliance provides an interdisciplinary platform for researchers, practitioners and educators to discuss recent trends as well as explore cooperation.” Different forms of government assistance can lower investment risks for enterprises, thereby bolstering the local industry’s international competitiveness, he added.
Taipei City-headquartered Chunghwa Telecom Co. is working closely with government agencies, schools and the private sector to fast-track deployment of 5G technology. (Photo courtesy of Chunghwa Telecom Co.)
AITA’s efforts have brought to production AI chips for use in many applications including early warning, fingerprint identification, telematics and smart lighting and temperature control systems. “By accelerating AI chip development, we’re helping ensure Taiwan remains the leading source for computer chips of all types moving forward,” Chang said.
In the Cloud
One of the fastest growing applications for AI is in IoT products—a combination known as AIoT. The pairing is a perfect match, as IoT devices must process multiple data streams and decide on the most appropriate response from a range of options, such as when to adjust the temperature of a room or what brightness of lighting is most appropriate for the time of day.
Joining AIoT as a leading technology in the post-pandemic era, 5G is set to power a new world of high-speed communications, making almost instant wireless transfers of large volumes of data between hundreds of devices possible on a scale never before seen, according to Lin Rong-shy (林榮賜), CTO of Taipei City-headquartered Chunghwa Telecom Co. (CHT).
“Before COVID-19, companies talked about digital transformation, but often without much action. The pandemic has tested how well prepared they really were and highlighted a lot of shortcomings,” Lin said. “So it’s great to see the government adopting a practical policy to propel related development with financial and technical support.”
In terms of applications, 5G can be used across many industries ranging from education, entertainment and health care to manufacturing and transportation. Lin said CHT has been working closely with government agencies, schools and the private sector to fast-track deployment of the technology.
CHT’s innovative 5G solutions are used across many sectors including agriculture and health care. (Photo courtesy of CHT)
CHT’s 5G solutions have already been adopted alongside AIoT for smart farming in 13 cities and counties countrywide, helping monitor field conditions and detect when crops need fertilizer, water and pesticide. The technology reduces the need for manual labor and bolsters productivity, according to Lin.
“The convergence of 5G mobile broadband, AI, big data analytics, cloud computing and IoT is taking manufacturing and other industrial sectors to new heights of productivity and innovation,” Lin said. The positive impact of what is termed the Fourth Industrial Revolution, or Industry 4.0, can be fully realized through the wide-scale deployment of 5G in combination with other connectivity solutions, he added.
Implementation of the Taiwan 5G Action Plan beginning in 2019 seeks to create an environment suitable for the development of 5G networks, which in turn can boost the nation’s digital competitiveness, foster industrial innovation and embed smart technologies in everyday life. With an estimated investment of NT$20.4 billion (US$716 million) by the government, the four-year undertaking is aimed at developing value-added communication services along with vertical application through deregulation, establishment of experimental facilities and talent pool creation.
As the government continues to dedicate resources to the country’s AIoT, 5G and semiconductor sectors, as well as supporting forward-looking startups through various state-backed incubators, Taiwan is well placed to solidify its critical role in global supply chains. “The rapid migration to digital technologies driven by the pandemic will continue into the future,” OST’s Tsai said. “By capitalizing on its ICT capabilities and emphasizing software solutions, Taiwan can capture these new business opportunities and maintain strong growth momentum in the years to come.”
Write to Kelly Her at kher@mofa.gov.tw