Experts welcomed the opening in Taipei yesterday of a new research and development (R&D) center for the software used to power up and down computer systems and digital devices.
US-based Phoenix Technologies Ltd yesterday expanded its branch office in the Taipei World Trade Center to include a global "center of excellence" that will research the core software known as BIOS (basic input-output system).
BIOS is the built-in instructions in every computer and digital device that tell it how to start, test itself and talk to disk drives and attachments such as the keyboard, mouse and monitor.
"Acer welcomes leading IT companies setting up R&D centers in Taiwan," said Henry Wang (
"It will benefit Taiwan's talents to learn from world-class companies," he said.
While the nation has been strong in the nuts and bolts of technology -- it is the world's fourth largest computer hardware manufacturer -- it has been weak in creating its own software to integrate into distinctly Taiwanese products.
"Taiwan is very weak in three [software] areas -- wireless communications, digital content and embedded software for information appliances," said Weng Cheng-hsiung (
"Phoenix's decision to locate its R&D center here should cultivate much more research locally and help the Taiwan research community to grow to international levels," Weng said.
Last year, Phoenix employed between 60 and 70 engineers in Taipei, or around 75 percent of its total workforce here.
The company now plans to double that number.
"People and skills will be transferred to Taiwan," said Jack Huang (
"It's a big opportunity for the market," he said.
BIOS is Phoenix's biggest revenue earner and the vast majority of the company's customers are in Taiwan, said Phoenix chief executive officer Albert Sisto at yesterday's opening ceremony.
"The Taiwan center of excellence is strategic to our future," Sisto said. "As we expand our facilities here we plan to also expand our resources."
The company sees Taiwan as a bridge to China.
"Most of the design and the
integration is here ... Our emphasis is on doing the original development here with support for the post-manufacturing and manufacturing which seem to be centered in Pudong, Nanjing, Shenzhen, Guangzhou," Sisto said.
The new R&D center is an endorsement of Taiwan's technology industry, said Douglas Paal, director of the American Institute in Taiwan, at yesterday's ceremony.
"Phoenix's decision to set up its global R&D center here in Taiwan is a good example of how American companies demonstrate their commitment when the environment is right," Paal said.
Taiwan should learn from companies like Phoenix and increase its investment in R&D to remain competitive, Vice Premier Lin Hsin-yi (林信義) said at the ceremony.
"In 2001, the amount we spent on R&D was 2.16 percent of GDP. We hope to increase that to 3 percent by 2007," Lin said.
He noted that the comparable figure for the US and Japan is currently 2.98 percent and 2.9 percent for South Korea.
The Phoenix center is the latest in a line of successes for Taiwan. On Monday, Intel Corp opened an innovation center in Taipei.
The government hopes to attract up to 30 R&D centers from overseas by 2008, Lin said.
More than a dozen international companies have already located centers in Taiwan, including Hewlett-Packard Co, Sony Corp, Dell Inc and IBM Corp, he said.
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