Given its central role in the digital transformation of society, AI is being promoted alongside other revolutionary technologies such as 5G, Internet of Things and semiconductors by Taiwan’s government. “These technologies impact innovation by enabling new products, services and business models,” said Tsai Zse-hong, executive secretary of the Executive Yuan’s Office of Science and Technology.
The ability to unleash Taiwan’s economic and social potential is why information and digital technology is one of the key planks in the government’s six core strategic industries initiative. Unveiled by President Tsai Ing-wen during her 2020 inauguration and building on the five-plus-two innovative industries program, the six core strategic industries also comprise the cybersecurity; biotech and medical technology; national defense; green and renewable energy; and strategic stockpile industries.
AI is having a notable impact on the growth of Taiwan’s semiconductor industry through helping with the design of increasingly complicated processes while cutting R&D time and costs. (Courtesy of TSMC)
The dividends are already clear: Taiwan ranked 12th in the 2019 Global Competitiveness Report issued by Geneva-based World Economic Forum, which also praised Taiwan as one of the world’s top four super innovators alongside Germany, the U.S. and Switzerland in 2018 and 2019.
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 and capacity expansion over the next three years.
The information and digital technology industry is the growth engine underpinning the government’s six core strategic industries initiative. (CNA)
To consolidate the leading position of Taiwan’s semiconductor industry, the government has initiated a coordinated effort to develop the core technologies for AI chips. One prime example is the establishment of the AI on Chip Taiwan Alliance in 2019 under the auspices of the Ministry of Economic Affairs and OST. The AICTA aims to help semiconductor companies cut R&D time by at least six months in order to substantially reduce costs.
Other than channeling government assistance to lower investment risks, AICTA Vice Chairman Chang Shih-chieh said the alliance also provides an interdisciplinary platform for other interested parties to discuss recent trends and explore cooperation.
According to Lin Rong-shy, CTO of Taipei City-headquartered Chunghwa Telecom Co., one of the fastest growing AI applications is in IoT, with 5G set to power a new world of high-speed communications in the post-coronavirus era.
5G is set to power a new world of high-speed communications in the post-coronavirus era. (MOFA)
“Before COVID-19, companies talked about digital transformation, but often without much action. The pandemic has tested how well prepared they really were,” Lin said. “It’s great to see the government adopting a practical policy to propel related development with financial and technical support.
“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,” he 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, Lin added.
“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.” (By Kelly Her) (E)
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(This article is adapted from Intelligent Planning in the May/June Issue 2021 of Taiwan Review. The Taiwan Review archives dating to 1951 are available online.)