Key Openings in Business Solicitation of the ICT IndustryIndustry Structure. Value Chain Dominance....

Copyright 2019All Rights Reserved

Industry, Science and Technology International Strategy Center (ISTI)


Interdisciplinary Innovation Research GroupIndustry, Science and Technology International Strategy Center

Industrial Technology Research Institute

Key Openings in Business Solicitation of the ICT Industry



11

Presentation Outlines

I. Changes in the trend of the industryII. International benchmark casesIII. Status of Taiwan at a glanceIV. Status of Taipei at a glanceV. Strategy and recommendations for

development

I. Changes in the trend of the industryII. International benchmark casesIII. Status of Taiwan at a glanceIV. Status of Taipei at a glanceV. Strategy and recommendations

for development



33

Classification Name and Definition of Industry

Manufacture of Electronic Parts and

Components

Manufacture of electronic components including semiconductors, passive electronic devices, PCB, and optronic materials and components.

Semiconductor: Semiconductor manufacture, such as integrated circuit (IC) and discrete component; and semiconductor packaging and testing.Electronic passive devices: Manufacture of passive devices, such as electronic devices including capacitors, relays, inductors, and resistors.PCB: PCB manufacture and copper clad laminate manufacture.Optronic materials and components: Optronic material and component manufacture, such as LCD panels and components; LEDs, solar cells, and plasma and components.Manufacture of other electronic parts and components.

Computers, Electronic and Optical Products

Manufacturing

Manufacture of computer and peripheral equipment; communication equipment; audio and video equipment; magnetic and optical media; measuring, navigating, control equipment, watches and clocks; irradiation and electromedical equipment; and optical instruments and equipment

Computer and peripheral equipment: Manufacture or assembly of computers and peripherals.Communication equipment: Manufacture of telephones, wired communication equipment, wireless communication equipment, broadcast and TV equipment. Audio and video equipment: Manufacture of audio and video electronics for home entertainment and cars, such as TVs, video recorders, home theatre equipment, DVD players, jukeboxes, loudspeakers, audio amplifiers, microphones, headsets and earphones, and homecamcorders.Magnetic and optical media: Manufacture of blank magnetic and optical data storage media, such as blank CDs or DVDs.

Measuring, navigating, control equipment, watches and clocks: Manufacture of measuring, navigating, and control equipment, and time measuring devices (e.g., watches and clocks).

Irradiation and electromedical equipment: Manufacture of irradiation and electromedical equipment, such as medical ultrasonic equipment, electronic hearing aids, and electromedical endoscopic equipment; and manufacture of food irradiation equipment.

Optical instruments and equipment: Manufacture of cameras and other optical instruments and equipment.

Telecommunications Wired telecommunications, wireless telecommunications, and other telecommunications-related services; internet access service providers (IASP); and systematically integration TV channels and delivery of TV programs to subscribers through wired telecommunication transmission services.

IT IT services including portal operations; data processing; and server and website colocation services.

Four Main Sectors of the ICT Industry• In this study, ICT covers to areas relating to digital transformation. Common areas includes: 6th generation mobile network

(6G telecommunications), artificial intelligence (AI), quantum computing (QC), blockchain, virtual assistant, augmented reality (AR) & virtual reality (VR), electronic paper display (EPD), smart contact lens, biological computing (biocomputers), machinetranslation (MT), brain-computer interface (BCI), holography, high-performance computing (HPC), biometrics, natural user interface (NUI), wall penetrating radar (WPR), highly integrated chip technology, high efficiency inductive charging technology,optical communication, cognitive radio (CR), indoor positioning system (IPS), spin transistors, cloud computing, and remote sensing.

• Given the need for data of related industries, this study corresponds ICT sectorization to Taiwan’s standard industrial classification. With respect to the National Statistics of the Republic of China (Taiwan), ICT sectors include: “Electronic Parts and Components Manufacturing”, “Computers, Electronic and Optical Products Manufacturing”, “Telecommunications”, and IT.

Source: ISTI, ITRI (2019/02)



44

• As the focus of the digital network industry has shifted from hardware to network applications, and the industry structure has also shifted from vertical division of labor to horizontal integration, it is necessary to capture industrial development through innovation of user applications for digital networks.

Low-Mix High-Volume

Mass Production

Cost/Price

Closed Type

Product-oriented

Vertical Division of Labor

The Long TailHigh-Mix Low-

Volume

Value Creation/ Application

Open Platform

Application Service

Vertical Integration of Ecosystem

Competitive Elements

Previously IoT Era Key Issues

Production Manner

Market Competitiveness

Industry Structure

Value Chain Dominance

Ecosystem Structure

Customization, development acceleration

Data collection, analysis, and application

Open platform

Integrated solutions/ service providers

Vertical integration, horizontal alliance

• Maker movement• Take the beachhead of

applications

• Information economics• Human-oriented

• Open platform for innovation

• Sharing economy

• Life optimization • Production

competitiveness

• Horizontal integration• User application

ecosystem

ICT as a Basis of Industrial Development After Competitive Element and Industry Paradigm Shift in Global Competitions and Technological

Breakthroughs




55

• Apart from driving industrial transformation and service innovation, digital transformation will redefine digital lifestyle, industrial competition elements, and online to offline (O2O) society.

• WEF’s 7 key technologies for digital transformation: Artificial intelligence (AI), autonomous vehicle, big data analysis and cloud, custom manufacturing and 3D printing, IoT and connecting devices, robots and drones, and social media and platforms.

Experience economy

Sustainable growth

Sharing economy

Human enhancement

Data economy

Circular economyIntelligent

transportation system

Smart logistics

Fintech Smart retailSmart

healthcare

Smart city

Smart manufacturing

ImmersiveExperience

V2X Communication

AutonomousThings

Al AlgorithmsExpert systems

Empowered EdgeData analytics

Chatbots

Digital TwinAugmentedanalytics

New GenerationConsumers

ServiceUnbounding

Cognitive Computing

Data drivendecision

H/M Interaction

Workforce

Prosumer

Digital Transformation

Social Media and Platforms

Autonomous Vehicle

IoTAI Big Data

Analysis and cloud

Robots

Custom manufacturing

WEF: The 7 Key Technologies for Digital Transformation

Key ICT Trends: 7 Key Technologies for Digital Transformation

Source: WEF



66

Home entertainment/ home life/smart home

E-sport technology/ sports technology

AI/Drones/Robots

• 11 key themes of CES 2019: 5G/IoT, advertising/entertainment/content, self-driving, blockchain, health/fitness, household, immersive entertainment, design (influence of US-China trade war: 20% of CES 2018 exhibitors were from China; and 20% less exhibitors from China as ZTE withdrew from CES 2019, and Huawei and Baidu reduced the area of exhibition).

• Software prevails and life and health are main battlefields of innovation: Software/apps and AI were the hotshots at the show; digital health, e-lifestyle, and sensors and biometrics were three of the top ten; smart homes and smart cities were the most popular innovative applications, and the number of exhibitors of vehicle technology, cybersecurity, and privacy increased significantly.

Immersive Entertainment

Sports

Startups

5G technology/ sustainable development/ smart city/sustainability

Entertainment content/ advertising/music

Autonomous vehicles/ vehicle technology

Encrypted virtual currencies

Accessibility technology/digital

health/fitness/wearable

AR & VR/ Games

3D printing/design/ sourcing

Investors/startups

5G/IoT

Advertising/ Entertainment/

Content

Self-Driving

Blockchain

Health/Fitness

Home

Design & Manufacture

Robot/AI

11 Key Themes of CES 2019 Innovative Areas at CES

Key ICT Trends: 11 Key Themes of CES 2019




77

Voice Computing

Robotics 5G

Biometrics Blockchain

Artificial Intelligence

DigitalPrivacy/Security

Digital Assistants

AR/VR Vehicle Tech

Digital Health

Resilient Technologies

Sports Innovation

Ingredient Technologies Consumers In the Market

Source: Steve Koenig, Ben Arnold and Lesley Rohrbaugh (Greater)

• Heavyweight themes of CES 2019: 5G, AI, and 8K

Key ICT Trends: 3 Key Themes of CES 2019



88

MainframePC

InternetMobileSocialCloudData

IOT(Ubiquitous)

Artificial Intelligence

(SmartMachine)

1970s 1980s 1990s 2000s 2015s 2020s

Computation Communication Cognition

• Number of Connected Devices • Amount of Data Generated

Mai

nfra

me Mainframe era:

Centralized computing, easy-to-use for enterprises

PC

PC era: Digital and personalized computing

Inte

rnet Internet era: Rise of e-

commerce, initiation of networking

Mob

ile Mobility, social network, cloud computing, and data analysis era: Connection devices and big data

IoT IoT era: Ubiquitous

computer and cognition form a smart space to give rise to all kinds of smart applications.

Smar

t M

achi

ne Smart machine era: AI popularization, including machines with self-judgement and self-learning ability, such as driverless cars, UAVs, and robots.

Computation-oriented Intelligence and cognition orientedCommunication and connection

oriented

AI to take up IoTA war of integration of data, computing, and experience




9

1970’s 1980’s 1990’s 2000’s 2010’s 2020’s – 2030’s

Supply chain cluster (Taiwan => Overseas)

Core capacity of manufacturing industries (OEM => ODM => OBM)

Network economy (ERP => Internet => App => SDX)

Hard-sort fusion (Cloud => Big Data => IoT)Value Creation

Missing the Boat

Advantage Accumulation

New Opportunities

• AI is an important trend as indicated by various research reports and experts.• Although Taiwan ICT industry has developed complete hardware advantages (core capacity of manufacturing industries and

industry supply chain clusters), we have missed the opportunity for network economy development over the past dozen years or so. In the future, we should grasp the new opportunity for resilient technologies and the hardware-software fusion led by the data economy to promote industrial transformation and upgrading and value creation in Taiwan.

New Opportunities for Value Creation Through Hardware-Software Fusion with ICT


I. Changes in the trend of the industry

II. International benchmark casesIII. Status of Taiwan at a glanceIV. Status of Taipei at a glanceV. Strategy and recommendations

for development



1111

• According Mark Zuckerberg, France is one of the world’s strongest AI communities, as witnessed by the world’s top third highest number of AI startups, with 2/3 stationed in Paris.

• Cluster analysis shows that active startup activities, public-private partnership research (large enterprise support), and plentiful professional talents are key to success of AI development in France.

• Solution 1: Active development of startup ecosystem with multiple competencies.

Source：France’s competitiveness in AI (Harvard Business School)

Well D

eployment in Various AI Areas

Downstream Support for Startups of Large Multinational Corporations

French AI Cluster: Startup Ecosystem with Multiple Competencies and PPP Research (1/2)



1212

• Solution 2: Building public-private research lab.

• Solution 3: Forming cluster universities to gatherSTEM talents

Private-Public Labs with Abundant Energy

Forming cluster university (Université Paris-Saclay) to gather talents.

French AI Cluster: Startup Ecosystem with Multiple Competencies and PPP Research (2/2)

Source：France’s competitiveness in AI (Harvard Business School)



1313

• Known as the “Silicon Docks” or “Silicon Bog”, Dublin Ireland plays an essential role in the global ICT industry.

• The thriving ICT cluster develops upon large multinational corporations, which drive SME and startup development (both Google and Microsoft have headquartered in Ireland) to fuel hardware development (manufacturers) with software (ICT).

• Cluster analysis shows that multiple field linkage, large enterprise support, and industrial environment building are key to success of the ICT industry in Dublin.

• Solution 1: Linking key clusters of all fields to build a robust ecosystem.

Source: Ireland Internet Cluster (Harvard Business School)

Industry Representative Company Major Activities

IT Services Sabeo Technologies, Limited Provision of IT-related system integration/ maintenance and customer consultation/ service/ maintenance

Devices Huawei Technologies Ireland, Netgear, and Dell Direct Manufacture, wholesale, and retail of digital equipment or devices

Hardware/Devices Symantec Limited Hardware R&D, localization, and packaging and distribution.

SoftwareDovetail Group, The Press Association of Ireland, Lionsbridge International

Software development or digital content development (e.g., game producer or news agencies).

Human Capital Development

Ballycommon TeleWork and Training Centre Limited Training for computer or software operation

Supporting Services The Westcon Group Recruitment and training of professionals, or recommendations for

e-marketing, or other business consultation services.

Dublin (Ireland) ICT Cluster: Driving Overall Ecosystem Development with Large Multinational Corporations (1/2)



1414

• Solution 2: Industrial environment building(Ireland has advantageous natural environment, geographical location, and tax systems. These are national level strategies and have been excluded from this study).– ICT talent pool: Building a talent pool for science,

technology, engineering, and mathematics (STEM) talents through the Institutes of Technology Ireland (IOTI) in collaboration with 14 universities to develop the required STEM talents. Commerce and management courses are included in the curriculum equip engineering graduates with the ability to commercialize innovations.

– ICT accelerators: Building accelerators to incubate SMEs and startups as sources of innovation.

Source: Ireland Internet Cluster (Harvard Business School)

• Solution 3: Big enterprise support

Dublin (Ireland) ICT Cluster: Driving Overall Ecosystem Development with Large Multinational Corporations (2/2)



1515

• Oulu in Finland is an internationally recognized smart city and a paradigm of the development of innovative ICT and applications. It became a pioneer of open innovation by means of participatory innovation.

• Solution 1: City as an urban living lab for development innovative ICT and applications.– Signing the Oulu Innovation Alliance (OIA ) among science parks, research institutions, universities, and

the public sector to promote innovation and development and an open innovation system in Oulu and realizing creating industrial competitiveness in a smart city.

– Establishing the Oulu Urban Living Labs (OULLabs) as the main coordinator to develop the required technologies, products, and services by combining user-centered knowledge and applications with existing infrastructures and networks in Oulu.

Function Description Living LabUserrecruitment

Establish, develop, and test specific target groups.

• PATIO: An online system for recruiting users and tests at every stage of development, with testbed and equipment rental services.

Test environment

Gather the actual condition of product use or service subscription of users

• UBI: Set product locations and perform market survey and interview.• 3D Virtual Laboratories: 3D space simulation to discern and observe

user demands.• TTKaakkuri Product Testing: Medical environments for field tests.• LeaForum: R&D of new communities and infrastructures, interdisciplinary

study, and equipment resources recording and observation.• CNL Converging Networks Laboratory: Provision of measuring,

assessment, and experience services of different network environments.

Professional services

Provide analysis and consultation services of user experience by experts

N/A

Finland Oulu: City as Urban Living Lab for Developing Innovative ICT and Applications (1/2)




1616

• Solution 2 : Planning the city as a pilot living lab in the public-private-people-partnership (PPPP) concept.– Based on the PPPP concept, OIA considers the city as a pilot living lab. In June 2015, it implemented the first

field test of the 5G mobile network (on the campus). In 2017, it opened the 5G development environment for tests by enterprises (in the city) and organized the 5G FWD Hackathon to recruit innovative applications (prize at €25,000).

– This 5G mobile network test was conducted in collaboration by the VTT Technical Research Centre of Finland, Oulu University, NOKIA, and related system manufacturers and research institutions (including MediaTek of Taiwan). The 5GTN+ test network was used to develop vertically used 5G environments, emphasizing high-speed and reliable connection, transient lag, energy efficient, and connection applications.

Urban 5G

Infrastructure

Living

Virtual Schools

Application Themes

Medical Centers

TV Broadcasting

Source: BusinessOulu, Networked Society The Rise of a New Urban Infrastructure.

Finland Oulu: City as Urban Living Lab for Developing Innovative ICT and Applications (2/2)



1717

• Under the IoT strategy, Finland has proposed the “we live digital” vision to develop industrial application solutions from the system service point of view. It is estimated that IoT applications for vertical integration will bring business opportunities up to €12 billion by 2023 and create up to 48,000 job opportunities.

• Solution 1: Developing academia-industry collaboration platforms by linking enterprises and the academia to connect with different industries.• Starting transformation from the campus, Finland has established the Aalto University Industrial Internet

Campus (AIIC) to connect enterprises and the academia to form a research and practice platformand guide industries to connect with AIIC. In addition, digital infrastructures, including teaching buildings, campus transportation, and energy, are used to build the smart campus.

• Well-planned physical space and digital infrastructures are provided on the campus. Physical space includes lab space and working space (driverless vehicles, large machine tools, 3D printers, robotic arms, and electronic products testing devices are the outcomes). Digital infrastructures include 5G-based telecommunication networks, omnipresent sensors, cloud computing, and data analysis. IoT courses are also designed to connect “startup sauna” with resources from large enterprises.

Source: Aalto Industrial Internet Campus (AIIC)

5G-based communication networks, ubiquitous sensors, club computing, and data analysis

Finland AIIC: Development of IoT Application for Vertical Integration Through Academic-Industry Collaboration (1/2)



1818

• Solution 2: Recruiting large enterprises to lead innovation and development• AIIC offers platforms for each enterprise to explore IoT in terms of

the following methods:• Installing products, systems or software on AIIC facilities for testing.• Providing access to data.• Innovating with researchers, students, and startups together.• Participating in innovation activities, such as hackathons.

• ABB tests innovative bearing technology with AIIC facilities and offer related machines for use by startups. ABB also gathers related data as product feedback to make improvements.

• Konecranes organizes the hackathon in collaboration with AIIC and opens machine data and UIs for contestants to develop new-type smart cranes, optimize target positioning and shaking control. Winners can win a prize of €7,000.

Source: Aalto Industrial Internet Campus (AIIC); Industrial Internet Campus Status and Next Steps

Finland AIIC: Development of IoT Application for Vertical Integration Through Academic-Industry Collaboration (2/2)



1919

• Hong Kong Science and Technology Parks (HKSTP) are administered by the Hong Kong Science and Technology Parks Corporation to support and encourage local sci-tech innovation to sustain Hong Kong’s development. Recently, the company has been promoting the industrialization of Hong Kong.

• Solution 1: 5 sci-tech clusters and 3 sci-tech platforms• Key sectors include biomedical technology, electronics, green technology, ICT, and material and

precision engineering to turn Hong Kong into a new-generation sci-tech innovation hub and thereby the world’s IoT solution center.

Source: https://www.hkstp.org/zh-hk/

Biomedical technology

Green technology

Electronics

Material and precision engineering

ICT

Healthy ageing

Robotics

Smart city

IoT

Product & industrial design Boosting import/export trade and

employment with hi-tech intelligent industry

HKSTP: Turning Hong Kong into a New-Gen Hub of Innovation and Technology Development and IoT Solution Center with 5 Clusters and 3

Platforms (1/2)



2020

Strategic Partner Content of Collaboration

MicrosoftSign an MOU with Microsoft Hong Kong to establish the IoT Innovation Platform to support the cloud data analysis and concept verification of startups and offer expert consultation and training services to accelerate IoT innovation and development with cloud services and tools.

Google Invite Google to join the “incubation program” to provide cloud platforms, technical support, instructional support (guidance for designing and developing the best Android apps), and business development support.

Cisco Promote the Digital Living Lab program and build the IoT platform Cisco Kinetic in collaboration with Cisco to promote and practice related technologies in the city.

Hong Kong Quality Assurance Agency

(HKQAA)

Sign an MOU with the HKQAA to establish a long-term partnership to provide further support for potential sci-tech enterprises in Hong Kong with HKQAA-certified clients and professional teams, with foci including: consultancy service (providing matching service for park enterprises with the connections of HKQAA and large enterprises); event organization (organizing business-related knowledge transfer activities for park enterprises, such as professional training and seminars, to provide additional resources for startups); and trust from customers (progressively establishing the quality assurance mechanisms and certification systems for startups to strengthen park ecosystem development).

Hong Kong Computer Society (HKCS)

Promote the SME Mentorship Programme in collaboration with the HKCS by inviting a minimum of ten sci-tech directors from leading enterprises as mentors to share field experience and networking with mentees.

Airport Authority Hong Kong (AAHK)

Promote the Technologies from Science Park Programme by selecting appropriate solutions from various park sci-tech companies for experiments at the Hong Kong International Airport to raise airport completeness, optimize passenger experience, and enhance the efficiency of resources and energy. These solutions cover big data, mobile apps, wearables, positioning technology, biometrics, passenger self-service solutions, retail-related technologies, new-gen information display systems, robotics, and energy efficiency technologies.

• Solution 2: Becoming the world’s IoT solution center as a super connector.• Collaboration with large enterprises to drive the overall industrial chain and help startups develop with strategies including:

• Talent cultivation: Cultivate new-generation IoT talents.• Startup fostering: Foster related ICT startups.• Strategic alliance: Sign strategic alliances with different organizations and launch collaboration with various large

IoT/telecommunications companies and application demanders in areas including content development, application platform development, and market development.

HKSTP: Turning Hong Kong into a New-Gen Hub of Innovation and Technology Development and IoT Solution Center with 5 Clusters and 3

Platforms (2/2)

Source: https://www.hkstp.org/zh-hk/



2121

Large MNCs (+ Startups)

Local SMEs

Governm

ent Organizations

Venture Capital

Ireland

Hong K

ong

FranceIreland

Hong

Kong

Finland

• Most domestic brands are international brands

• High population in the EU• An exporting country of fundamental

high-tech with the most talents, strong fundamental science power, MNC R&D financial support.

• Very few international brands.• Relatively open economy and

system to be the testbed of the China market.

• Close to the Pearl River Delta Economic Zone with well-established related industries chains.

• Very few international brands.• Medium Low population in the EU• Attract large MNCs to investments

for driving local startup SME development with country-led strategies.

• Very few international brands.• Medium low population in the EU.• Low population with high innovation

motivation and comparatively lower system testing costs. Introduce innovative technologies and systems through academia-industry-government collaboration to become a pioneer of high-tech applications and trail and error.

France

Finland

Seeking Unique Development Models from Own Strengths and Sociotechnical Characteristics



II. International benchmark cases

III. Status of Taiwan at a glance

IV. Status of Taipei at a glanceV. Strategy and recommendations for

development



2323

• The 2017 ICT revenue was NT$5,112.6 billion, 5.42% higher than that of 2016 at NT$4,835.4 billion, with the highest from the manufacture of electronic parts and components at NT$3,755.6 billion, an increase by about 6.57%, and semiconductors and optoelectronic materials and components as the major products. The revenue of the manufacture of computers and electronic and optical products also reached NT$717.3 billion, with computer equipment and communication equipment as the major products. The revenue of IT was NT$205.5 billion.

• Although the increase in ICT companies is slowing down, each sector in the industry is seeking innovation in products, customers, operations, and ecosystems to maintain continuous growth through digital transformation and organization and skill regeneration. The number of ICT companies increased to 15,590 in 2017, with a working population of 868,801 persons (about 7.6% among the total 2017 working population of 11.48 million persons).

IndustryManufacture of electronic parts

and components

Manufacture of computers and

electronic and optical products

Telecommunications IT Total

Year 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017Revenue

(NT$100mn) 35,087 37,556 6,983 7,173 4,430 4,342 1,854 2,055 48,354 51,126

Number of companies 5,801 5,817 3,074 3,049 1,090 1,114 5,166 5,610 15,131 15,590

Working Population (persons)

589,520 598,479 208,001 209,727 42,713 42,899 16,587 17,696 856,821 868,801

Source : https://statdb.dgbas.gov.tw/pxweb/Dialog/statfile9.asp

Unit: NT$ hundred million

Toward Digital Transformation and New Business Model Creation to Ease ICT Slowdown



24

• The 2017 revenue of Taiwan’s IT and electronics industries (including electronic parts and components; and computers and electronics and optoelectronic products) was NT$6.3 trillion, with a value added ratio (VAR) of 40.8%, higher than average ofthe manufacturing industries by 11 percentage points. The revenue has been growing in the last five years, making IT and electronics the principal industries in Taiwan.

2017 VAR of Secondary Manufacturing Industries

Telecommunications

VAR: 59.0% RevenueNT$374.8bn

IT

VAR: 63.4% RevenueNT$251.8bn

NB: Intermediate inputs in the production process of service industries are mostly utility expenses and rent expense, the VAR is thus higher than that of the manufacturing industries, and without capital expenditure statistics.

VAR of ICT ServiceAdded Value Rate (%

)

Basic Metals and Products

Chemical Materials and Products

Mechanical Equipment

Food, Beverage and Tobacco Electrical

Equipment

Other Products and Machinery Repair and

Assembly

Transportation Vehicle

Paper Pulp and Paper Products

Rubber, Plastics, and Nonmineral Products

Capital Expenditure/Revenue

Average Capital

Expenditure/Revenue 8.2%

Average value-added rate 29.7%

Petroleum and Coal Products

Medical goods and medical chemicals

IT and Electronics 2013

IT and Electronics

The size of circles represents the domestic revenue

ICT: Benchmark Industry in Taiwan with About-Average and Rising Value Added Ratio and Output




25

• The 2017 VAR of ICT manufacture (electronic parts and components and computers and electronic and optical products) is significantly above the average of 29.7%; while the equipment depreciation of telecommunications service (including Chunghwa Telecom and others) is higher, significantly different from that of other service industries.

VAR of ICT Manufacture VAR of ICT Service

VAR Operating Profit Margin

Personnel Expenses Rate

Depreciation and Amortization Rate

VAR Operating Profit Margin

Personnel Expenses Rate

Production and Import Tax Ratio

Production and Import Tax Ratio

Average VAR of service industries: 67.8%

Depreciation and Amortization Rate

Average VAR of manufacturing industries: 29.7%

Electronic Parts and Components

Computers and Electronic and Optical Products

Telecommunications IT

Above-Average VAR in ICT Manufacture, Higher Equipment Depreciation in Telecommunications




26

North Region Cluster (complete corridor)(Hsinchu + Taoyuan + New Taipei City

Development starts with the drive of leading manufacturersDespite a late start in central Taiwan, IC industrial chain in a smaller scale

has been formed in central Taiwan with active government support and the drive of the Central Taiwan Science Park (CTSP), particularly the four 28nm fabs of leading domestic enterprise (TSMC) in the CTSP, which contributed a revenue over NT$200 billion in 2017. Following the mass production of the 10nm and 7nm processes, and the continuous expansion of Micron Taiwan and Siliconware Precision, the scale of the cluster is expected to expand.Most enterprises in the park are advanced IC fabs.

Central R

egion Cluster

Forming Secondary Clusters: Foundry and IC Packaging Leaders (e.g. Winbond and TSMC) has announced one after another

to invest in the Southern Taiwan Science Park (STSP). Another keycluster will be formed in the future.

IC packaging will be the major cluster content.

Southern R

egion Cluster

Complete Sci-Tech Corridor: Hsinchu-Taoyuan-New Taipei CityForming a sci-tech corridor from the Hsinchu Science Park (HSP)

northward to New Taipei City. This corridor has a well vertically integrated supply chain (IC design and IC manufacture), well-established infrastructure, and abundant academic and research resources, leading Taiwan in both scale and growth speed.Core industries (software and hardware) and well-development

supporting industries including finance and logistics, and the downstream service application cluster has formed.Taipei City and New Taipei City have high developmental potential

formed by well-established digital in fractures and abundant labor and related talents.

Northern R

egion Cluster

South Region Cluster (expanding)

(Kaohsiung + Tainan)

HSP

CTSP

STSP (Kaohsiung Park

STSP (Tainan Park)

Central Region Cluster (on its own) (Taichung City)

NB: The location quotient, one of the cluster indicators, of counties and cities is sorted from low to high into six intervals.

A Sci-Tech Corridor from Hsinchu to New Taipei City with Science Park as ITC Promoter


簡報者

簡報註解



27

ICT Cluster Development Content

Neihu Technology Park

Enterprise operational headquarters, IT, communications, and biotech R&D and design zones.

Nangang Software Park

Biotech, IC design, and digital content.

Beitou-Shihlin Technology Park(under planning)

Knowledge economy and high-tech industries: biotech, media, IT, and communications

Hwa Ya Technology Park

Computers, optronics, wafer, and electronic devices.

HSP Semiconductor, optronics, the computers

Tai Yuen Hi-Tech Industrial Park

IC design and communications equipment

CTSP Semiconductor and optronics,

STSPSemiconductor, optronics, solar energy, LED, battery, and communications

STSP (Tainan and Kaohsiung)

CTSP (Taichung, Houli, Erlin, and Huwei)

HSP (Hsinchu, Zhunan, Longtan,

Yilan, and Tongluo)

Tai Yuen Hi-Tech Industrial Park

Hwa Ya Technology Park

Beitou-Shihlin Technology

Park

Neihu Technology Park


ICT Corridor with Featured Clusters in Science Parks of Different Role Settings from North to South



II. International benchmark casesIII. Status of Taiwan at a glance

IV. Status of Taipei at a glance

V. Strategy and recommendations for development



29

Source: 2017 MOF Statistics Database; 2011 Industry, Commerce and Service Census

• With respect to the 2011 Industry, Commerce and Service Census, the ICT industry in Taipei City plays an essential role with an annual revenue about NT$2,900.8 billion (about 21% of all), 3,977 enterprises (about 23% of all), and a working population of 152,044 persons (about 17% of all).

ItemEnterprises Employees Revenue

Number Persons NT$100mnTotal 3,977 152,044 29,008 Ratio in Taiwan 23% 17% 21%Manufacture of Electronic Parts and Components 461 24,776 2,627

Semiconductor 90 4,690 238 Passive electronic devices 57 3,721 357 PCB 30 1,587 79 Optronic materials and components 67 6,505 979 Manufacture of other electronic parts and components. 217 8,273 974

Manufacture of computers and electronic and optical Products 445 43,098 20,956

Computer and peripheral equipment 121 27,676 18,379 Communication equipment 108 5,824 527 Audio and video equipment 59 1,276 66 Magnetic and optical media 13 2,941 191 Measuring, navigating, control equipment, and clocks and watches. 99 3,213 1,247

Irradiation and electromedical equipment 13 238 7 Optical instruments and equipment 32 1,930 539

Telecommunications 153 39,474 4,070 IT 2,918 44,696 1,355

Computer system design 2,126 36,303 1,119 Portal operations, data processing, website co-location and related services 687 7,067 203

Other information provision services 105 1,326 32

Taipei City

LegendsRevenue (NT$100mn)

Taipei City: Key ICT Cluster in Taiwan



3030

• The ICT industry in Taipei City is brilliant in terms of related digital foundations (computer and internet utilization rate), talent resources (number of ICT-related facilities), industrial capacity (number of manufacturers or related software and hardware for e-commerce), leading Taiwan in overall assessment. Along with the unique innovation atmosphere, Taipei City is the first testbed option for ICT innovation and development in Taiwan.

Digital Foundations(internet utilization rate)

Talent Resources(ICT faculties)

Industrial Capacity(related software/hardware manufacturers)

Industrial Capacity(related software/hardware manufacturers)

0-156156-344344-1,3201,320-3,2513,251-8,631

0-3232-6868-166166-567567-1,067

0-11-44-1111-1616-21

68.5-72.072.0-75.575.5-78.378.3-83.283.2-86.1

NO.2NO.1NO.1NO.2

Source: NSC Digital Opportunity Survey, MOE University List System; MOF Statistics Database 2016 Statistics

Leading Taiwan: ICT Related Foundations, Industries, and Talents in Taipei City



31

• With respect to ISTI’s linkage effect analysis, in addition to a direct revenue of NT$734 billion and a working population of 118,000 people, Taipei’s ICT industry in 2015 brought an additional revenue of NT$303.4 billion and 54,000 job opportunities from the supply chain of related industries and the business activities of other industries.

• Direct Effect: The 2015 ICT revenue of Taipei was NT$734 billion, with a working population of 118,000 persons.

• Supply Chain Effect: In 2015 Taipei’s ICT industry provided business opportunities worth NT$181.9 billion for the chemical materials and electricity equipment industries at upstream and the wholesale and retail and professional sci-tech services, and support services industries at downstream and created 34,600 job opportunities.

• Consumption Stimulation Effect: In 2015 the employees of Taipei’s ICT industry and related supply chains stimulated the business activities of other industries through consumption create a revenue of NT$121.5 billion and 19,000 job opportunities.

1This study estimated the driving effect of Taipei’s ICT industry based on DBGAS’ 2011 industry linkage table and Taipei’s regional linkage table inferred based on the census data. 2This study estimated the job opportunity based on DBGAS’ census data and wage and productivity statistics by first calculating the GNP per capita of each industry and then the job opportunities created based on the output value of individual industries driven by ICT.

Direct Effect

Supply Chain Effect

Consumption Stimulation Effect

Total Effect

NT$303.4 bn and 54K Job Opportunities More from Core Industries




32

• Manufacturing industries have a stronger revenue driving effect. In Taipei City, this effect is seen in the supply chain of the textile, chemical, and vehicle and vehicle parts industries.

• As the telecommunications industry in ICT can drive the development of industries including electricity equipment at upstream and the wholesale at downstream and retail, professional sci-tech services, and support services in Taipei City, it is recommended to increase ICT investments to drive Taipei City’s venue*.

• Service industries have a stronger employment driving effect. In Taipei City, this effect is seen in communications services, logistics services, and professional sci-tech services.

• As the telecommunications industry in ICT can drive the development of industries including electricity equipment at upstream and the wholesale at downstream and retail, professional sci-tech services, and support services in Taipei City, it is recommended to increase ICT investments to drive Taipei City’s employment.

Revenue D

riving Effect

Employm

ent D

riving Effect

• Taipei is a hub of financial services. Related professional sci-tech services, communications services, and wholesale and retail and logistics services are highly connected.

• From the efficiency point of view, the telecommunications industry in ICT has the strongest driving effect of both revenue and job opportunities.

*In Taipei City, the manufacture of computers and electronic and optical products in the ICT industry has a better driving effect. As the financial services industry in Taipei has a stronger tie with related industries, the results of integrated assessment show that ICT has a better revenue driving effect than the manufacture of computers and electronic and optical products.

Strongest Driving Effect from Telecommunications




3333

Taipei Port

HSP

Youth Industrial Park

Nankang

Linkou

Tucheng

Dawulun

Taoyuan Intl’ AirportKeelung

Port

Taipei Airport

XizhiBaochangkeng

Neihu Technology

Park

Beitou-Shilin Technology Park

Nankang Software

Park

Taipei-New Taipei-Keelung-Taoyuan-Hsinchu Industrial Corridor

Shilin

Taipei Technology Corridor

THSR National Freeway 1

National Freeway 3

WuguDingkan

Nangang Biotech Cluster

Liudu

Changshuwan

Zhongli

Hwa Ya

Hsinchu

Biomedical Park

Eco-Shezidao

43

Keelung CityManufacture/Logistics

New Taipei, Taoyuan, Hsinchu

Manufacture• Support services• Manufacture• R&D

• Logistics and storage• Global logistics• Manufacture

Taipei CityInnovation, R&D

• Enterprise HQs• R&D centers• Fundraising platform

GuanyinDayuan

• Linking to the manufacturing bases in New Taipei City, Taoyuan and Hsinchu, and the production and logistics bases in Keelung to form the Taipei Technology Corridor integrating production, R&D, and logistics.

Source: East Gateway Project Development Vision & Urban Development Presentation, Taipei City Government.

Policy Direction: Taipei Technology Corridor



3434

• Taipei City is deploying four industrial parks, including the existing thriving Neihu Technology Park and Nangang Software Park, and the Eco-Shezidao and Shilin-Beitou Technology Park under progress, as preparation for future industrial development.

34

關渡工業區

Eco-ShezidaoBeitou-Shilin

Technology Park

Neihu Technology

Park

Nangang Industrial Cluster


In response to the global trend of industrial development, the Taipei City Government is planning the high-tech industry cluster development to build the Taipei Technology Corridor with the advantages of the existing ICT and biotech technologies to introduce future emerging technologies to boost industrial development and create the cluster efficient of industries.

Preparation for future industrial

development

Smart healthcareDigital

Technology Service

ICTBiotechCross-Sector Startups

Software, biotech, startup, cultural

& creative, MICE.

Source: East Gateway Project Development Vision & Urban Development Presentation, Taipei City Government.

Policy Direction: Taipei Technology Corridor



35

• Based on the enterprise survey and analysis in terms of electronics, IT, and communications industries of the Neihu Technology, Nangang Software Park, and Dawan South Section Industrial Park in Taipei City, the revenue, the number of enterprises, and the number employees grow steadily every year in the four sectors of information electronics: computer and audio and video electronics, electronic parts and components, electrical machinery and equipment, and precision optical and medical equipment and clocks and watches; and in telecommunications, computer system design services, data processing, and IT application services of IT and communications.

Source: Enterprise Survey and Analysis Report of Neihu Technology Park, Nangang Software Park, Dawan South Section Industrial Park, and NeiHu Redevelopment Zone Phase V in Taipei City of 2010, 2011, 2012, 2014, and 2016

0

200

400

600

800

98 99 100 102 104

Ente

rpris

es

資訊電子業資訊及通訊傳播業

0

15,000

30,000

45,000

60,000

98 99 100 102 104

Empl

oyee

s


0

5000

10000

15000

20000

98 99 100 102 104

億元


0

15

30

45

60

98 99 100 102 104

NT$

100m

n


Number of Enterprises Number of Employees Average Revenue/Enterprise

Revenue

0

20

40

60

80

100

0

200

400

600

800

1000

1200

98 99 100 102 104

廠商數營業收入(百億元) 員工數(千人) 平均每家營收(億元)

ICT in Taiwan at a Glance

Enterprises Revenue (NT$10bn) Employees (thousand persons)

Average Revenue/Enterprise (NT$100mn)

Information electronics

IT and communications

NT$

100m

n

Information electronics

IT and communicationsInformation electronics IT and communicationsInformation

electronics IT and communications

Industry Status: Steady Growth of Information Electronics



36

Rank Industry Net Revenue(NT$100mn) Employees Enterprises Top 5

1 Life insurance 39,081 126,271 21 Cathay Life, Nanshan Life, Fubon Life, Shin Kong Life, Taiwan Life2 Computer manufacture 23,099 22,059 7 Pegatron, Compal Electronics, Inventec, Advantech, Elitegroup Computer Systems

3 Financial holdings 21,602 243,609 16 Cathay Financial Holding, Fubon Financial Holding, CTBC Financial Holding, Shin Kong Financial Holding, Yuanta Financial Holding

4 Petrochemical 17,111 26,024 16 Taiwan CPC, Formosa Petrochemical, Chang Chun Petrochemical, China Man-Made Fiber, Taiwan Styrene Monomer

5 Wholesale of computers and peripherals and software 7,328 18,729 20 ASUSTeK Computer, Acer, Synnex Technology, Primax Electronics, Pegasus

6 Banking 7,167 126,046 30 CTBC Bank, Cathay United Commercial Bank, Mega Bank, First Bank E.SUN Bank

7 Whole and retail of electronic parts and components 6,074 5,229 28 World Peace Industrial, Toshiba Electronic Devices & Storage, EDOM Technology, Supreme

Electronics, AIT Group8 Electricity supply 5,815 26,914 3 Taiwan Power, Sun Ba Power, Star Energy9 Public enterprise 5,136 1,454 1 Bureau of Labor Insurance, Ministry of Labor

10 Telecommunications 3,808 36,476 6 Chunghwa Telecom, Taiwan Mobile, Far EasTone Telecommunications, Asia Pacific Telecom, Taiwan Star Telecom

11 Vehicle trading 3,801 12,080 13 Hotai Motor, Mercedes-Benz Taiwan, Pan German Universal Motors Ltd., Mercedes-Benz, Honda Taiwan

12 Post and courier delivery 2,716 26,132 1 Chunghwa Post

13 Synthetic fiber and textile 2,629 21,239 6 Nan Ya Plastics, Far Eastern New Century, Li Peng Enterprise, Zig Sheng Industrial, Lealea Enterprise

14 Import/export trade 2,404 6,317 33 Panasonic Industrial Device Sales (Taiwan), Test Rite International, Formosa Idemitsu Petrochemical, Toyota Tsusho Taiwan, Mitsubishi Electric

15 Convenience store 2,280 13,459 3 President Chain Store, Taiwan FamilyMart, Hi-Life International16 Supermarket chain 1,940 21,047 5 Costco Wholesale, Carrefour Taiwan, RT-Mart, Test Rite International, Ruentex Development

17 Healthcare 1,872 68,242 10 Chang Gung Medical Foundation, National Taiwan University Hospital, Taipei Veterans General Hospital, MacKay Memorial Hospital, Taipei City Hospital

18 Department stores 1,656 6,656 7 Shin Kong Mitsukoshi, Pacific SOGO, Breeze Development, Taipei Financial Center (Taipei 101), Far Easter Big City

19 Computer peripherals 1,528 5,999 3 Lite-On Technology, Kinpo Electronics, Flytech Technology

20 Construction 1,360 9,707 18 Continental Engineering, Fu Tsu Construction, DA CIN Construction, Farglory Construction, Highwealth Construction

-- Others 26,022 301,269 253 --

• Based the top 500 enterprises in Taipei City by China Credit Information Service Ltd., the financial industry is the industry with the largest revenue contribution to the city, and ICT-related industries (inducing computer manufacture, computers and peripherals, software, and electronics parts and components) make the second largest contribution.

Source: China Credit Information Service Ltd.,

Industrial Structure: ICT Second Important to Finance



37

53.46%

17.27%

5.46%

3.85%

3.04%

2.72%

2.64%

2.49%

2.26%

1.68%

1.48%

1.43%

0.80%

0.75%

0.33%

0.33%

電腦系統設計服務業

入口網站經營、資料處理、網站代管及相…

其他電子零組件製造業

電信業

電腦及其週邊設備製造業

通訊傳播設備製造業

其他資訊供應服務業

量測、導航、控制設備及鐘錶製造業

半導體製造業

光電材料及元件製造業

視聽電子產品製造業

被動電子元件製造業

光學儀器及設備製造業

印刷電路板製造業

資料儲存媒體製造業

輻射及電子醫學設備製造業

• The number of computer system design service providers (2,126, accounting for 53.46%) is the highest in Taipei’ ICT industry; portal operations, data processing, website co-location, and related services (687, accounting for 17.27%) the second highest; and the other electronic parts and components manufacturing the third highest (217, accounting for5.46%).

• According to the China Credit Information Service survey, the top five ICT manufacturers in Taipei include ASUSTeK (mainboards, laptops, DVD writers, and servers), Chunghwa Telecom (mobile network, SMS, voice value added services, and other value added services including international roaming, mobile data, GPS systems, and VPN, Acer (computers and peripheral equipment; the design, sales and repair o IT products), World Peace Industrial (distribution of electronic parts and components), and Toshiba Taiwan (semiconductor and valve import/export trade)

Source: 2011 Commerce, Industry and Service Census, China Credit Information Service Ltd

Sector Key Manufacturer(Top 10 by net revenue)

Electronic parts and components manufacturing

Delta Electronics, Nan Ya PCB, HannStar, Display Promate Electronic, TAIYO YUDEN Taiwan, Holy Stone Enterprise, Walsin Technology, TDK Taiwan, Green Energy Technology, Tong Hsing Electronic Industries

Computers and electronic and optical products manufacturing

Pegasus Technology, Compal Electronics, Inventec, Lite-On Technology, Advantech, Sercomm, Elitegroup Computer Systems, Transcend Information, Arima Communications, Kinpo Electronics

Telecommunications

Chunghwa Telecom, Taiwan Mobile, Far EasTone Telecommunications, Asia Pacific Telecom, Taiwan Star Telecom, New Century InfoComm Tech, Chief Telecom, Welldone, SaveCom International, Taiwan Intelligent Fiber Optic Network Consortium

IT

GASH, PRESCO, TradeVan, So-net Entertainment Taiwan, Sunfun Info, TAIWAN-CA, Kingwaytek Technology, Netmaker Technology, E-TEN Information Systems, Goyourlife

Computer system design

Portal operations, data processing, website co-location, and related services

Other electronic parts and components manufacturing

Telecommunications

Manufacture of computer and peripheral equipment

Manufacture of communication equipment

Other Digital Information Supply Services

Manufacture of measuring, navigating, and control equipment, and watches and clocks

Semiconductor

Manufacture of optronic materials and components

Manufacture of audio and video equipment

Manufacture of passive electronic devices

Manufacture of optical instruments and equipment

Manufacture of PCB

Manufacture of magnetic and optical media

Manufacture of irradiation and electromedical equipment

Industrial Structure: Computer System Design the Largest



38

• About 48% of ICT enterprises are located in Neihu, Zhongshan, and Daan districts, including 776 enterprises (18%) in Neihu, 702 enterprises (16.3%) in Zhongshan, and 639 enterprises (14.8%) in Daan.

• In terms of secondary industries, IT is centralized in Zhongshan and Daan districts; electronic parts and component manufacture and computers, electronic products, and optical products are centralized in Neihu and Nangang districts; and telecommunications are centralized in Daan and Neihu districts.

Source: 2017 MOF Statistics Database; 2011 Industry, Commerce and Service Census

0

100

200

300

400

500

600

資訊業電子零組件製造業電腦、電子產品及光學製品製造業電信業

Number of Companies

IT Electronic parts and components

computers and electronic and optical products

Telecommunications

Major Cluster Distributions: Neihu, Zhongshan, Daan



39

I. Changes in the trend of the industryII. International benchmark casesIII. Status of Taiwan at a glanceIV. Status of Taipei at a glance

V. Strategy and recommendations for development



40

• Trends- AI is an important trend as indicated in various reports or by various experts.- Despite the well-established advantages of ICT hardware manufacture (core competencies and supply chain clusters),

Taiwan has missed the opportunities for development in the network economy over the past dozen years or so. In the future, we should capture the new business opportunities from smart life applications and services and new opportunities from hardware-software integration led by the data economy to promote industrial upgrading and new value creation in Taiwan.

• Benchmarks- Based on worldwide examples, it is clear that the key to success of ICT development includes:Science, Technology, Engineering, and Mathematics (STEM) talentsThe push of the attraction and driving effects of world-leading manufacturers, particularly to incubation of innovation. Innovation ability of startups as the source of industrial completeness.Related infrastructures and foundations as the support of industrial development, including construction and opening of

testbeds and PPP establishment.• Current status

- Overall ICT industry in TaiwanSlowing down growth, need to develop toward digital transformation and create new business models.Forming a science corridor from Hsinchu to New Taipei City with industrial/technology as the catapult. Information electronics as the benchmark industry with above-average value added ratio and revenue, and a growing

trend.- ICT in Taipei In addition to related infrastructures, industries, and talents that are ahead of Taiwan and the unique innovation

atmosphere, Taipei is the prime testbed for ICT innovation and development in Taiwan.As the city’s important core industry that creates a revenue of NT$734 billion, ICT also brings another NT$303.4

billion and 54,000 job opportunities to Taipei. From the viewpoint of driving effect, ICT has the strongest driving effect on the revenue and employment of telecommunications.

Taipei City is deploying four major industrial parks, including the thriving Neihu Technology Park and Nangang Biotechnology Park, and the upcoming Eco-Shezidao and Shilin-Beitou Technology Park as preparation for future industrial development (currently about 48% of ICT manufacturers are located in Neihu, Zhongshan, and Daan districts).

Summary of Trends, International Benchmarks and Current Status




41

• Taipei City has a high ICT capacity that has formed the Taipei technology corridor. The Shilin-Beitou Technology Park is expected to further thrive related industries (new land will be released after project initiation).

• MNCs (the global observation of ICT development focuses on where leading manufacturers invest) are key to success of ICT development in Taipei. As an important source of innovation, startups are crucial to ICT development. Application platforms and good environments are what attract the investment of leading manufacturers.

• Collaboration with world-leading IoT/communications enterprises and application users, with focus the development of contents, application platforms, and markets.

• Fostering related ICT startups with focus on the startup ecosystem for a soft landing center; establishing linkage channels for startups and other cluster members; and offering various entrepreneurial supports (e.g. offices and facilities, technology and management, market promotion and development, business development, and funding).

• Turning the city into a living lab of emerging technologies and applications for ICT-related technology energy to release in the city. Promoting exchange and collaboration among heterogeneous industrial clusters to derive emerging industries, products, and service solutions for an organic entity for sustainable innovation. Building complete digital infrastructures and information security support for industries to development without worries.

Linking international

strategic partners

Participation of heterogenous local industries and living lab of innovations

Building innovation and

application platforms

Recruiting and developing

startups

Hub for ICT Solution and Innovation of Asia

Strategic Direction: Attracting Large Enterprises and Startups with Application Platforms and Environment Preparation




4242

3. Building innovation and application

platforms

1. Linking international

strategic partners

Promoting collaboration

Setting standards

Attracting resources

Cross-sector integration

Startups are the source of innovation.

Apart from basic and reliable utility and land supply, it is necessary to provide future testbeds, digital infrastructures (including information security support), and digital platforms required by enterprises and startups, and introduce the membership mechanism to provide services in order to attract large enterprises and startups.

Collaboration with large enterprises to drive the development of the overall industrial chain and startups. Partnering with different organizations for collaborative development of ICT-related contents, application platforms, and markets.

2. Recruiting and

developing startups

Connectingwith others

Incubatinginnovation

Three Main Strategic Directions




4343

• Full connection to international development trends and coordination forenterprises

- Attracting foreign system operators with outstanding performance in past collaboration with Taiwan and establishing awareness by partnering with world-leading system operators in order for overseas exportation (China and Southeast Asia markets).

- Launching collaboration with world-leading manufacturers with the city or parks by organizing theme international conferences and inviting overseas heavyweight enterprises to sharing in order to indirectly promote collaboration between park enterprises and world-leading manufactures through that platform.

• Assistance for overseas deployment through the city or parks- Promoting collaboration with foreign cities, parks, and organizations dedicated to ICT

development by signing MOUs (e.g., the Oulu City& Oulu Science Park-5G of Finland or refer to the “eligible partners” in the recommendation section).

- Helping park enterprises to introduce research outcomes and solutions to China, Southeast Asia, and other emerging markets requiring smart city development.

Recruiting MNCs (attraction strategies) and strategically partnering with overseas organizations (outgoing strategies) to link to overseas enterprises and promote exchange and collaboration for collaborative industrial promotion through constantly enhancing foreign contacts and visits.

1. Linking International Strategic Partners




4444

• Linking MNC resources- For example, Microsoft Taiwan collaborates with domestic leading accelerators AppWorks, HWTrek,

and Garage+ and offer free Azure cloud resources worth US$120,000 a year as fuel for industrial boost.

- For example, Microsoft Hong Kong collaborates with the HKSTP to build Hong Kong into an IoT hub by offering free Azure cloud services, Azure IoT entry-level packages, training facilities, employee support, and advisory services.

• Soft landing center- Established for domestic and foreign technology companies to cultivate the domestic or Asia markets,

the center offers them a well-furnished “foothold” before they seek business opportunities and settle down for entrepreneurship. The center also provides them with free legal consult and accounting service periodically to plan business development.

- The center is a soft landing platform for foreign universities, system parks, and foreign sci-tech research organizations by offering foreign SMEs and research institutions with short let and professional assistance for development, in order to help them verify the suitability for long-term development in Taiwan.

• Providing necessary infrastructures- Providing entrepreneurship support, including offices and facilities, technology and management

support, market promotion and development support, business development support, and funding.- Offer startups and partners suitable venues in specific parks as testbeds for innovative technologies or

products. Partners can demonstrate their research outcomes and the latest designs to the public. Partners can receive the first-hand feedback to their products to enhance competitiveness.1

The ecosystem and environment for startup development are the focus for developing ICT in the city and parks, and MNC resources can be introduced to assist with the development of park startups.

2. Recruiting and Developing Startups




4545

• Turning the city or the park (e.g. Beitou-Shilin Technology Park or Eco-Shezidao) into a real-life living lab for innovation

- Planning demo sites for industries, assistance for developing and demonstrating products/service performance, provide suitable testbeds in the city or the park for companies in emerging industries to experiment innovative technologies or products and thereby demonstrate their latest developed products to the public, and enable them to receive first-hand feedback to enhance competitiveness.

- Testbeds for AR/VR, driverless cars, and minimal fabs.- Providing quality digital infrastructures, including 5G networks, datacenters, and cloud server

rooms.• Providing digital infrastructures and information security supports

- Solid academic research and talent cultivate are the backbone of ICT development. According to the IMD World Digital Competitiveness Ranking 2018, Taiwan was ranked the 16th in overall performance (63 countries), the 1st in total R&D personnel per capita, and 3rd in educational assessment PISA – Math. As Taipei City is Taiwan’s talent pool, we should take this advantage.

- While the internet is without boundaries, as long as Taiwan has European clients or business partners, we must comply with the EU General Data Protection Regulation (GDPR). Enterprises are advised to take early assessment and prepare for the impact on operations of the GDPR.

In addition to basic and reliable utility and land supply, testbeds, digital infrastructures, and digital platforms for industries and startups in the future are offered, and the membership mechanism can be introduced to provide services.

3. Building Innovation and Application Platforms




4646

Source: The Turn of Technology Clusters in Neihu Technology Park 2.0 Presentation, the Taipei Department of Economic Developmentwebsite.

Park Description

Neihu Technolog

y Park

• With a total area of 149.72 hectares, the area for industrial land use is 81.95 hectares, including (1) Technology Industry Zone A occupying an area of 68.52 hectares for electronics and electronic machinery manufacturing and IT; and (2) Technology Industry Zone B occupying an area of 13.43 hectares for vehicle maintenance and repair.

• By July 2017, a total of 5,750 enterprises have entered the park (including SunWay Biotech, Grape King Bio, Beautistyle International, ACT Genomics, Lite-On Technology, Compal Electronics, and First International Computer). Over 95% of the park has been developed, and most land in the parked is fully used.

Neihu Technology Park 2.0

(under planning)

• While the Neihu Technology Park is the major engine of industrial development in Taipei City, the number of enterprises and employees has been increasing constantly through the city government’s policy support over the dozen years or so. Park space has thus become saturated and is unable to meet the future needs of industrial development.

• The city government thus proposed the Neihu Technology 2.0 Redevelopment Project to plan six bases with a total area of 14.19 hectares to create a minimum floor area of 220,000 m2 (approx. 67,000 Japanese tsubo) for industrial development to promote the development of ICT, biotech, and cross-sector startups.

Nangang Software

Park

• With a total area of about 10 hectares, the park includes the (1) Nangang Software Park Phase I occupying an area of about 4 hectares for the information software and electronic machinery industries (100% occupancy); (2) Nangang Software Park Phase II occupying an area of about 4 hectares for the biotechnology, information software, IC design, and digital content industries (100% occupancy); and (3) Nangang Software Park Phase III occupying an area of about 1.5 hectares (99.9% occupancy).

• Most park industries are knowledge-intensive, notably software and IC design, digital creativity, biotech, and cultural and creative. Current occupants include the IBM, AMD, and Siemens.

Key Suggestions for Business Solicitation (1/16)• Possible parks for ICT (1/4)



4747

Source: East Gateway Project Development Vision and Urban Development Presentation of the Taipei Department of Urban Development(2017/04); Presentation at the Beitou-Shilin Technology Park Industry Development Planning and Consultation Seminar, and NangangTakeoff: Building New Energy for Economic Development in Taipei Presentation (2017/05), Taipei Department of Urban Development website.

Park DescriptionEast Gateway Project (under

planning)

• Revitalization of the Warehouse of Taiwan Power Center AR1 and Repair Division CR1 with an area of 3.69 hectares and 3.40 hectares. Expected to be completed in 2022, respectively for digital technology (fintech and blockchain applications), experiments, arts, incubation, public housing, and smart senior housing.

Dawan South Section Industrial

Park

• Occupying an area of about 70.74 hectares, a cluster for supermarket (hypermarket) chains, furniture chains, logistics, and electronics.

Beitou-Shilin Technology Park (under planning)

• Occupying a land area of about 194 hectares, the technology industry zone of about 25 hectares is primarily designed for high-tech industries such as “smart healthcare” and “digital technology service” industries, and secondary for future emerging industries. It is planned to be a window for advanced technology demonstration.

Eco-Shezidao Project (under

planning)

• Occupying a land area of about 294 hectares, it is designated for the “Demo Project for Eco-City and Smart Community Development”. The park is zoned as a technology industrial zone to effectively link to the Beitou-Shilin Technology Park to extend and create an industrial corridor for co-prosperity and aligning with the trend of overall industrial development in Taipei to promote forward-looking industries.

• (Subject to the Proposal for the “Changing East of the Keelung River and the North and South of the Shuangxi River of Taipei City into the Beitou-Shilin Technology Park Project (Range of Zone Expropriation)” Project, the land area for the technology zone is 29.69 hectares).

Key Suggestions for Business Solicitation (2/16)• Possible parks for ICT (2/4)



4848

• Possible parks for ICT (3/4)– In addition large technology parks, there are about 16 sites for ICT startups on the startup base.

fashionBlock TaipeiFloor area: 893㎡

Nangang Station

Taipei Main Station

Gangqian Metro

Station

Yuanshan Metro Station

Manpower Textile Design and Innovation BaseSite/floor area: 3,340/12,026㎡

Beitou-Shilin Technology Park Site/floor area: 83,800/251,400㎡

Minglun Smart Public Housing Innovation BaseFloor area: 1,265㎡

CITFloor area: 2,233㎡

Shilin Metro Station

digiBlock TaipeiFloor area: 5,919㎡

Fuxing Smart Public HousingFloor area: 929㎡

U-mk TaipeiFloor area: 658㎡

Taipei Co-SpaceFloor area: 2,200㎡

Tesla EIS CenterFloor area: 2,143m2

Ganghu Creativity HubSite/floor area: 22,436/78,354㎡

Audi Centre TaipeiFloor area: 1,225m2

Nangang Bottle Cap Factory Maker SpaceFloor area: 3,793m2

TRA Business III Special Nangang International Convention CenterFloor area: 21,247m2

AR1 N24 Fintech Space Incubator

Floor area: 4,578㎡

Zhongxiao BarrackNangang Biotech ClusterSite/floor area: 15,097/60,972m2

Nangang Depot Biotech Innovation & RD HubSite/floor area: 5,336/61,000 m2

Longshan TempleMetro Station

Houshanpi Metro Station

Nangang Exhibition Center Metro Station

AR1 Fintech Space Incubator Phase II

Version: Sept 7, 2018

Fablab TaipeiFloor area: 254㎡

Heart of NHTPSite/floor area:17,542/115,710㎡

Startup Base Construction Period

Fashion Art Taipei TestbedFloor area: 4,824㎡

2024 (4 sites)

Opened for operations

(8 sites

2018 (2 sites)

2019 (2 sites)

2020 (2 sites)

2021 (1 site)

2022 (3 sites)

Tongan-mkt Space Floor area: 499㎡

22 sitesIn the city

8 sitesIn operations

2 sitesInitiation at year end

48

632,122m2

Total floor area (191,217 tsubo)

Key Suggestions for Business Solicitation (3/16)



4949

• Possible parks for ICT (4/4)– Except for parks and startup bases, the preliminary investigation of the land use for the ICT industry as per the industry

classification of the ROC Standard Industrial Classification, Business Item Code, and Taipei City Land Use Zoning Control Regulations shows that the land use for ICT industry in Taipei City covers groups 9, 12, 28, 52, 53, and 55, and possibility of establishment in some residential areas, business areas, and industrial areas and their requirements.

Source: ROC Standard Industrial Classification, Department of Commerce, MOEA; Taipei City Land Use Zoning Control Regulations; MOI 2017 Urban Planning Zoning Area-By District.NB: As direct cross reference and determination of the telecommunications and IT industries is hardly found in the current classification of respective authorities, zoning will be implemented as per the definitions and determinations of Taipei City.

Land Use Zoning Residential Area Business Area Industrial Area

Area in 2017 Statistics (ha) 3,789.97 883.92 409.3

Land Use Zoning (detailed)

Residential 1Residential 2

Residential 2-1 Residential 2-2

Residential 3

Residential 4 Business 1

Business 2Business 3Business 4

Industrial 2Industrial 3

Group 9 Community communications facility Telecommunications Allowed Allowed Allowed

Group 12

Utility facilities (excluding gas stations, LPG vehicle filling stations)

Telecommunications Requirements Requirements Requirements Conditional Conditional

Group 28 General offices Telecommunications

IT services Requirements Requirements Conditional

Group 52 Industries with milder pollution

Manufacture of computers, and electronic and optical products.

Requirements Conditional Conditional

Group 53 Industries with mild pollution

Manufacture of electronic parts and components(excluding fab and PCB)

Not allowed Not allowed

Group 55 Industries with severer pollution

Manufacture of electronic parts and components(fab and PCB)

Not allowed Not allowed

Not allowed,except afterconfirmation.




5050

• Resources available for ICT (Taipei City Government) (1/2)Content ICT Description

Taipei City Industrial D

evelopment R

egulations

1.IT services

2.Telecom

munications

1. Eligibility1) Establishment of or each capital increase of SMEs: 1. The cost of directly related equipment

or technology for innovating or improving operational management and services is NT$1million or more; or 2. business items with creativity, characteristics, or developmental potential.

2) Establishment of or each capital increase of SMEs in the IT services and telecommunications industries with a paid-in capital over NT$80 million may apply for incentives:

2. Subsidization for a single investment project:1) Incentives (either a or b)

a. Labor vocational training subsidization: A maximum of 50% of the training fee, totaling NT$0.8mn, one time only.

b. Labor wage subsidization: NT$10,000/person/month, not longer than one year, totaling NT$5mn, one time only.

c. Housing tax and land value tax subsidization: A maximum of full rate for the first two years, and 50% in the third year, totaling NT$50mn, one time only.

d. Factory and land rent subsidization: A maximum of 50%, not longer than 5 years, totaling NT$5mn, one time only.

e. Financing interest subsidization: Interest at 2.5%, two years only, totaling NT$50mn.f. Concessions for easing or superficies arrangement of city property (including rent

discounts)2) Subsidization for innovation & R&D and brand development: A maximum of 50% or NT$5mn,

one time only.3) Subsidization for innovation incubation: A maximum of NT$3mn, one time only.4) Subsidization for venture capital: A maximum of 50% or NT$1mn, one time only.

Source: Laws and Regulations Database of Taipei City




5151

Content ICT Description

Directions for Im

plementing the Young

Entrepreneurs of the Loan

No restriction on industry type

1. Eligibility1) ROC citizens aged between 20 and 45 with household registration in Taipei City for at least

one year.2) Participation in a minimum of 20 hours of courses in relation to entrepreneurship guidance

organized by the government within the last three years.3) The target business meets one of the following requirements:

a. Registration-exempted types of small business as specified in Article 5 of the Business Registration Act with tax registration in Taipei City for not more than five years.

b. Registration completed by law less than five years and with the registered address in Taipei City.

2. Credit limit: A maximum of NT$2 million (NT$3 million for applicants approved by the Department of Economic Development). The loan term is five years for secured loans and seven years for unsecured loans. The interest is charged at the mobile interest rate of the two-year term deposits of Chunghwa Post plus 0.555%. The Department of Economic Development offers full interest subsidization during the loan term.

Directions for

Implem

enting Small and

Medium

Enterprise of the Loan

No restriction on industry

type

1. Eligibility1) Type 1: ROC citizens aged between 20 and 65 with household registration in Taipei City,

registration-exempted small business with tax registration.2) Type 2: SMEs, business, or limited partnerships completed registration by law with the

registered address in Taipei City.3) Type 3: Type 2 business in the ICT, biotech, green energy, healthcare, cultural and creative,

leisure and quality agriculture, or tourism industry, and other strategic industries emphasizing R&D, design, creativity, and characteristics.

2. Credit limit: A maximum of NT$1 million for type 1, NT$4 million for type 2, and NT$5 million for type 3 (or NT$10 million when fulfilling the requirements in point 4).

Source: Laws and Regulations Database of Taipei City

Key Suggestions for Business Solicitation (6/16)• Resources available for ICT (Taipei City Government) (2/2)



5252

• Available resources (central government) (1/5)Competent Authority Content Description

Bureau of Foreign Trade,

MOEA

Subsidizing companies and firms to participate

in international exhibitions

Subsidization for individual enterprises participating in exhibitions overseas for market expansion. The limit of subsidization will not exceed 90% of the total venue rent of respective international exhibitions.

Bureau of Foreign Trade,

MOEA

Striving for business opportunities in

worldwide government procurement projects

Offering funds and business information to encourage enterprises to participate actively in the international bidding market.• Enterprises may apply for sharing of flight ticket fares, accommodations, visas, and consulting fees for

procurement contracts or PPP contracts over US$500,000 or engineering contracts over US$200,000. The maximum share of each procurement contract and engineering contract is NT$1 million and NT$350,000 respectively.

• Enterprises applying for being a supplier of large owners of overseas procurement contracts may apply for sharing the expenses of professional consultation, legal consult, financial expenses, trademark and patent licensing, certification, and translation, with a maximum of NT$100,000 each contract.

• Education and training and one-on-one consulting services for presentations and related topics of government procurement projects.

• Invitation of winners or owners of overseas government procurement contracts to discussion, seminars or presentations for subcontracting.

• Formation of delegations to source contracts and establish connections overseas (e.g. delegations to the annual congress of the European Bank for Reconstruction and Development and the Asian Development Bank to cultivate business opportunities).

• Maintenance of the GPA website and mobilization of the overseas units of MOFA, MOEA and TAITRA to gather information regarding worldwide procurement contracts for the reference of domestic enterprises to strive for business opportunities.

Department of Industrial Technology,

MOEA

A+ Industrial Innovative R&D

Program

• Sharing of the expenses of TDP (encourage the development of innovative and forward-looking technologies that are immature but with potential for Taiwan to become a leader of such technologies); integrated R&D projects (R&D of key and universal technologies, upstream-downstream technology integration, cross-sector technology integration, and the establishment of common standards/protocols or common platforms through collaboration of many enterprises) and encouragement of enterprises to set up three types of R&D centers in Taiwan.

• Maximum subsidization will be 40-50% of the total project fund for forward-looking technology projects and integrated R&D projects; and subsidization with a maximum of NT$20 million to encourage establishment of R&D centers in Taiwan, with a maximum of not more than 50% of the total project expense.

Source: MOEA industry guidance resources for 2018.




5353

Competent Authority Content Description

Industrial Development

Bureau, MOEA

Projects relating to training of

professional talents for industries

The range of training courses, including employment development class, on-the-job training class, and enterprise whole-class, covers key industries including smart electronics, machinery, IT service application, food manufacture, textile, smart content, medical equipment and devices, pharmaceutical, and energy technology. Maximum subsidization for the employment development class and on-the-job training class will be 50% of the training fee of each trainee. Maximum subsidization for enterprise whole-class will be 30% and 50% of the expense for large enterprises and SMEs respectively. The maximum amount of subsidization will be NT$1 million a year for each enterprise.


Bureau, MOEA

Information Industry

Application Leap Plan

Promotion of business opportunity matching for IT enterprises, key IT application industry, and key IT application market survey.


Bureau, MOEA

Smart Content Industry

Development Plan

Provision of an integrated service window for industries by integrating the expert consulting resources including leading technology enterprises at home and abroad and the academia to offer the most suitable assistance based on the needs of domestic industries, in order to increase the added value of industries, drive overall industrial development, and provide assistance covering:• Funding: The maximum amount is 50% of the total project expense, and the minimum self-funding of

enterprises is 50% of the total project expense.• Technological exchange: Establishment of industrial technology support centers to provide demonstration

and consultation services, assistance for gathering technology-related questions and obtaining replies, and construction of development and testing environments.

• Talent development and academia-industry collaboration.


Bureau, MOEA

Data Economy

Ecosystem Promotion

Plan

• Encourage enterprises to develop value-added applications and tools, create comprehensive innovative data services, promote vertical/horizontal collaboration among enterprises, establishment of BPR processes for the ecosystem of industrial data application, deepen knowledge application, strengthen decision-making support, and enhance organizational competitiveness through the mixed use of data of the public and private sectors at home and abroad, in order to create business opportunities and thrive overall economic development.

• Fund subsidization between NT$1 million and NT$8 million. Minimum enterprise self-funding at 50% of the total project expense.

Key Suggestions for Business Solicitation (8/16)• Available resources (central government) (2/5)




5454



Bureau, MOEA

IT Services Industry

Development Plan/IT Services

Industry Promotion Plan

• Linking international innovation center—Silicon Valley, USA, selecting forward-looking technologies with developmental potential, introducing forward-looking technologies from Silicon Valley, and organizing technological exchange and matching activities.

• Offering guidance courses based on international market strategic planning, international business expansion skills, and commodification and internationalization of solutions to help Taiwan IT service providers to develop international marketing competencies.

• Promotion items include technological exchange, marketing, assistance for connection with world-leading IT service providers, and forming marketing and export alliances with local organizations overseas.


Bureau, MOEA

IT Hardware-Software Smart Transformation

Ecosystem Promotion Plan

Promoting IT industry upgrading and transformation, increasing product added value, guiding domestic solutions, and focusing on the international export of total solutions. Promoting “smart application promotion”, “international partnership in Taiwan”, “cultivation of Taiwanese-Japanese software and industrial collaboration”; helping enterprises participate in international exhibitions, develop technologies, and engage in international collaboration; and organizing the Outstanding International Electronics and Information Technology Partner Awards (IPO Awards).


Bureau, MOEA

Digital Broadband Innovative Application

Industry Development Plan

• Guidance for engraining and optimization based on major government policies; promotion of the integration and upgrading of the networking industry; development and implementation of innovative application models; and construction of the IoT application ecosystem.

• Promoting exchange and cooperation among communications service providers through industrial exchange platforms and industrial alliances and linkage to academia-industry collaboration to demonstrate the effect of industrial integration; and recruiting key talents for industrial innovation to promote the development of startups and the networking industry.

• Strengthening cross-sector, cross-industry, and cross-country collaborative development of digital innovation applications; assisting industrial transformation and upgrading; and creating new value for vertical and horizontal applications.


Bureau, MOEA

Smart Electronics Industry

Development Promotion Plan

• Full capture of information regarding the market trends and future supply and demand of emerging industries, such as IoT, AI, and smart electronics (including smart motor electronics, smart medical electronics, and smart home). Provision of platforms for mutual cooperation and an investment environment favoring technology development for related industries and promotion of industrial upgrading to enhance Taiwan’s industrial competitiveness.

• Promotion items include optimization of the investment environment, establishment of a platform for academia-industry collaboration, provision of MICE services, and encouragement of technological exchange.





5555


SMEA, MOEA

Small Business Innovation Research

Program

• The program aims to stimulate SME innovation and R&D activities by sharing the R&D risk through government subsidization to elevate the R&D intention of SMEs, enrich their knowledge and enhance their patent deployment, develop advanced R&D workforce, and further commercialize R&D outcomes, in order to promote the positive domestic economic and industrial development.

• Divided into three classes: pilot research/pilot planning projects (phase 1); R&D and detailed planning project (phase 2); and value-added applications (phase 2+). Each class is subdivided into individual applications and R&D alliances, with funding ranging from NT$1 million to NT$50 million, at a maximum of 50% of the total project fund.

SMEA, MOEA

SME IP Value Upgrading Program

Provision of services include enterprise diagnosis, IP right advisory service, and IP right consultation service.

SMEA, MOEA

Directions for Youth Entrepreneurship and Startup Loans

The responsible person, investors, or entity of startups or businesses may apply for the loan. The maximum amount of reserve and overhead is NT$2 million, with a maximum term of six years. The maximum amount of revolving expenses is NT$3 million (NT$4 million for SMEs incubated by SMEA), with a maximum term of six years. The maximum amount of capital expenses is NT$12 million, with a maximum term of 15 years for property and plant; and 7 years for machinery, equipment and software. The mobile interest is charged at the mobile interest rate for two-year term deposits of Chunghwa Post plus 0.575%.

SMEA, MOEA

Directions for SME Loans

Profit-seeking businesses completed company, limited partnership, business or tax registration with less than 10 employees may apply for the loan. The maximum amount for revolving expenses is NT$5 million, with a maximum term of one year (short-term loans) or five years (mid-term loans). The maximum amount for capital expenses is 80% of the total project fund, with a maximum term of seven years. The mobile interest is charged at the mobile interest rate for two-year term deposits of Chunghwa Post plus 2.625%~3.625%.

SMEA, MOEA

Counter Guarantee Project

(local governments)

To thrive local economic development based on local characteristics, help local SMEs or individuals to obtain the required capital for operations, and compensate for the collateral inadequacy in raising loans, local governments provide a special fund for counter guarantee with the Small and Medium Enterprise Credit Guarantee Fund of Taiwan for SMEs. The Taipei City Government offers the Small and Medium Enterprise of the Loan and the Young Entrepreneurs of the Loan.





5656


SMEA, MOEA

Project for Small and Medium Enterprises

Expanding the New

Southbound Markets

• Guidance for SMEs to form an alliance for joint branding and thereby establish the SME industrial chain and cluster; Assistance for SMEs to cultivate new southbound markets and global markets for matching bilateral and multilateral business opportunities; promotion of cross-border e-commerce or emerging business models, in order to optimize international marketing channels for SMEs, create cooperation and reciprocity models, and develop long-term partnership with international partners for SMEs.

• Provision of diagnosis service and guidance, with a maximum funding of NT$150,000 each project.

Ministry of Labor

Directions for Micro/Women Start-up Loan

• Eligibility: (1) Age: 20-65 for women, and 45-65 for citizens, or 20-65 for residents of offshore islands. (2) Registration: Completion of tax registration, company registration, business registration, or establishment registration (private kindergartens, nursery homes or short-term tutoring/enrichment facilities) less than five years. (3) Employees: Less than five employees (excluding the responsible person). (4) Proof of training: 18 hours of entrepreneurship training offered by the government within the least three years.

• The maximum amount of loans for eligible applicants is NT$1 million for a term of seven years, with full interest subsidized by the Ministry of Labor in the first two years, and the mobile interest charged from the third year at the mobile interest rate for two-year time deposits of Chunghwa Post plus 0.575%.

Taipei Exchange

Go Incubation Board for

Startup and Acceleration Firms (GISA)

• Eligibility: (1) Companies with limited shares or companies with limited responsibility established as per Taiwan’s Company Act; preparatory offices for establishing companies with limited shares through fundraising. (2) Companies with innovation, creativity, and future development potential. (3) No restrictions on the length of establishment and profitability. (4) Acceptance of the “public joint counseling mechanism” of Taipei Exchange.

• The maximum amount of fund raised through investor subscription over GISA at the face value of shares shall not exceed NT$30 million.





5757

Item Beijing, PRC Los Angeles, USA Berlin, Germany Bengaluru , India

Factors thriving ICT

• High capital investments and low living costs.

• Support for local enterprises through government protection

• High capital investments• More professionals and R&D

talents• Many startups from college

incubators.

• High capital investments• Low rent attracting workforce• More job opportunities• High startup ratio

• Professional talent pool• Stable venture capitals and

foreign investments

Description

• A US$75 billion scale, just next to that of Silicon Valley at US$140 billion.

• Low living costs attracting increasing startups.

• Exclusion of foreign companies in the review system favoring local company development.

• Zhongguancun is famous for incubating leading technology startups in China. The PRC government announced an investment of US$1.5 billion to further develop the district in 2016.

• Rated as the world’s No. 1 tech hub by ExpertMarket in 2018 through government promotion and the location of international technology giants: Lenovo, Google, and Microsoft.

• Southern California increased capital by US$7 billion in 2017, and capital increase continued in 2018.

• CalTech continues to develop world-class R&D talents and owns the most patents in the USA.

• UCLA is the university with the most startups in the USA.

• The original technology center of Europe where many heavyweight industries headquarter. Quick rebirth after restructuring in 1990.

• Attracting many startups for industry plurality and a sound environment for business operations.

• Attracting and retaining workforce for lower rents.

• Startups will create 100,000 new job opportunities by 2020, according to McKinsey & Company.

• A city with the mist foreign startups (11%) in the EU, while the average is 2% elsewhere.

• Startups in Berlin contributed 2/3 of the German government revenue (US$3.65 billion) in 2018.

• A pool of IT talents expected to offer up 2 million IT professionals, 600 indirect IT job vacancies, and an IT export scale of US$80 billion in 2020.

• Becoming the largest startup city for stable venture capital investments, and also foreign investments.

Key Suggestions for Business Solicitation (12/16)• Available ICT linkages (cities) (1/5)



5858

Item Tel Aviv, Israel Boston, USA London, UK Moscow, Russia


• Abundance of venture capital investments

• Continuous network and IT development for defense needs.

• Adventurous spirit of Jews.• Forming clusters with startups.

• MIT incubates lots of startups.

• Attracting talents with high start pay.

• High capital investment.• Policy, infrastructure, finance, and talents.

• Startup incentivization from the government.

• Attracting investments• Talent development• Infrastructure for mobile telecommunications.

Description

• Access to venture capital.• World-leading network and IT technologies for decades due to conflicts with the Middle East and intelligence

• 90% of Jews are immigrants or second-generation immigrants with the adventurous spirit for startups.

• Tel Aviv is the core district of startups, with the world’s highest startup density: 2,500 startups with a population of only 435,000 people.

• Incubation from MIT, a world-leading technology R&D facility.

• High start pay (average over US$95,000/year) attracting local graduates and foreign technology talents.

• East London Tech City invested £4,500,000,000 from private placement in the first half of 2017, way higher than any other European tech centers.

• Policy-markers, finance, infrastructure, and world-class universities and talents.

• Government cash incentives continue attracting startups.

• A fast-growing world-leading tech center attracting major investments and outputting comprehensive local talents.

• The Russian business center with a saturated international business market.

• Free wi-fi in public transport and streets from infrastructure investments, important for startups relying on mobile commerce.




5959

Item Lisbon, Portugal New York, USA Singapore Amsterdam, the Netherlands


• Government incentivization policies.

• Guidance for startups from the startup platform

• Space and projects tailored for startups

• High capital investments• Incubator establishment• Expansion opportunities from

the financial market• More talents from high

population density

• Fund sufficiency from the financial center.

• Government protection for investments and entrepreneurships

• Quality immigrant talents

• Good infrastructure• Convenient land, sea, and air

transport.• High living standard• Highest broadband speed

Description

• Abundance of government incentivization policies.

• Various guidance plans from the startup platform to help ICT startups with investments and creation of new business models to become a city for innovation.

• Record-breaking construction projects as in New York to fulfill the needs of high-tech.

• The 35,000m2 incubator project is on the way to incubate various types of startups. Large companies also establish centers there, creating more job opportunities

• The Silicon Alley in New York is one of the world’s most energetic tech centers.

• Startups raised a venture capital up to US$11.5 billion in 2017 and invested over US$100 million to turn former Biltmore Hotel into the city’s newest tech incubator.

• The stock market and hunger-based investment structure of ICT startups and business owners provide abundant funds for expansion.

• More talents from high population density.

• A long-term financial center becoming a thriving tech center with sufficient funds.

• One of the cities with ease in doing business according to the World Bank: easy registration, protection for minority investors, and contract execution ability due to the government support for new technology development, e.g. the ICT incubation project.

• Lower entry barriers for foreign startups.Sufficient venture capital investors with opportunities for expansion, and well-educated immigrants.

• Full use of the country’s value by worldwide centers as the testbed for expanding existing startups.

• The best example for thriving ICT with physical infrastructure.

• At the gateway to other European countries connected to lots of land, sea, and air transportation networks.

• Competitive net income at €4.036 and high living standard make it the best technology city to work in in Europe. Rated as No. 1 in the best living indictor by OECD in 2018.

• Fastest broadband speed in Europe.




6060

Item Prague, Czech Republic Dublin, Ireland Shenzhen, PRC Cyberjaya, Malaysia


• Access to thriving business• Low business income tax

• Engineering focus of nearby universities.

• Low business income tax

• Transforming from hardware development into technology development

• Fast-growing electronics industry leads startups

• A quasi-Silicon Valley city with the Multimedia Super Corridor (MSC).

• Tax preference• With labor capital and

infrastructure at a lower cost

Description

• Near European business centers, such as Warsaw and Belin

• Low business income tax to 19%

• Many leading brands in Silicon Valley consider Dublin as their European bases.

• Google, Facebook, and LinkedIn have set their European headquarters in Dublin. Smaller enterprises, such as Zendesk and Dropbox, also set locations in Ireland.

• Focus engineering programs are offered at the Trinity College Dublin and University of Dublin.

• Biggest advantage is the 12.5% business income tax, the lowest in Western Europe, 10% less than the average of other European countries.

• Called the “Hardware Silicon Valley”, the city has transformed from a humble fishing village into a thriving technology economy. A foothold of many technology giants, such as Tencent, Huawei, ZTE, and BGI Group.

• Located in south China bordering Hong Kong, the fast-growing electronics industry culture of the city has let global innovation.

• A high-tech city quasi-Silicon Valley originated from the MSC established by McKinsey & Company in 1995 for research.

• Cyberjaya is the center of the MSC, a designated zone with tax preferences for high-tech enterprises and worldwide MNCs, with world-class human capital and infrastructure at the cost of developing countries.

• The MSC Program will transform Malaysia into a new knowledge economy competing on the international stage.




6161

Item Kista, Sweden Cambridge Science Park, UK


• An ICT R&D city neighboring academic institutions.

• Large scale ICT clusters.• Major R&D district for mobile phone

infrastructure.

• A park with a high technology development status with a long history.

Description

• Located in Rinkeby-Kista, Sweden, Kista is formed by the residential and business areas. Telecommunications and ICT are the key industries in the business area offering lots of research jobs. It is thus called a science city famous for the research park of the KTH Royal Institute of Technology.

• It was the largest ICT cluster in Europe, just second to Silicon Valley in California.

• A district with the highest R&D energy for 4G LTE infrastructure. The Kista Science City has been largest cluster using the ESTI standard in Europe.

• One of the oldest science parks in the UK established by Trinity College in 1970, enabling Cambridge to become a present-day leading technology center playing an important role.

• With 105 enterprises, 61% are local companies.




Due to high-tech development and industrial changes, no representations or warranties are made for the timeliness or integrity of the information provided in presentation. Users are at their own risk of damage of any kind for using such information. All rights of the information contained in this presentation are property of the Industrial Technology Research Institute. No part of such information shall be reproduced, publicly transmitted, altered, disseminated, or used in any form without written permission.

http://www.iek.org.tw

Vision 2025:

Technology

Innovation and Value

Enhancement of

Industries in Taiwan

Thank You

Dr. Chun-hao [email protected]+886-3-5914452

Chia-ju ChenResearch [email protected] +886-3-5914469

Yu-lin [email protected]+886-3-5915191

Key Openings in Business Solicitation of the ICT IndustryIndustry Structure. Value Chain Dominance....

Documents

Transcript of Key Openings in Business Solicitation of the ICT IndustryIndustry Structure. Value Chain Dominance....