Taiwanese companies could generate more than US$134 billion in gross output of goods and services by 2035 from 5G-related applications, particularly in those built for the Internet of Things (IoT), the latest report released by Qualcomm Inc showed.
The economic impact from the next-generation wireless technology will also include the creation of 510,000 jobs in Taiwan over the next 18 years or so, according to a report, The 5G Economy, released by Qualcomm Technologies Inc, a Qualcomm subsidiary, on Friday.
The research was jointly conducted by IHS Markit.
IHS said that 5G technology represents a new opportunity for Taiwan to move beyond its traditional role of the major supplier of component, semiconductor and contract manufacturing services to the world’s information and telecommunications sector.
The nation could remain well-positioned to serve the 5G-related electronics manufacturing during the early developing phase of 5G technology from 2020 to 2025, but it might lose market share to its Asian rivals, especially China and Vietnam, as local manufacturers tend to focus on boosting scale and cost efficiency, making them more vulnerable to competition, IHS said.
Taiwan is to see its global market share in the computer, electronics and optoelectronics sector, drop 2.2 points to 5.2 percent in 2035 from 7.4 percent in 2015, IHS said.
China will grab a bigger slice of the pie, rising from a 27.4 percent share of the market to 32.1 percent during that period, it said.
Government industrial policies that encourage more focus on research and development and manufacturing of higher-value semiconductors such as 5G chipsets could help Taiwan retain, or possibly expand, its market share, IHS said.
The study “reinforces our confidence in the tremendous opportunity for further collaborations with the mobile ecosystem in Taiwan,” Jim Cathey, president of Qualcomm’s Asia-Pacific and India regions, told a media briefing in Taipei on Friday.
Qualcomm on Monday last week announced it planned to collaborate on 5G NR-enabled small cell technologies with the Industrial Technology Research Institute in an effort to accelerate delivery and commercialization of 5G NR small cell products and infrastructure by Taiwanese original equipment manufacturers (OEM) and original design manufacturers (ODM).
Also on Friday, Qualcomm discussed progress made by its innovation lab in Taiwan, which was formed in November last year to help local ODMs and OEMs gain faster access to the global market at lower costs.
More than 20 Taiwanese customers have tested their advanced products at the lab since its launch, and about 240 products, including smartphones, IoT and wearable devices, either had their cameras adjusted, or 4G LTE modules tested, the company said.
The lab will also support testing on small cells and IoT devices enabled by 5G technology, when 5G technology becomes relevant, S.T. Liew (劉思泰), president of Qualcomm’s local unit, told the briefing.
Leading Taiwanese bicycle brands Giant Manufacturing Co (巨大機械) and Merida Industry Co (美利達工業) on Sunday said that they have adopted measures to mitigate the impact of the tariff policies of US President Donald Trump’s administration. The US announced at the beginning of this month that it would impose a 20 percent tariff on imported goods made in Taiwan, effective on Thursday last week. The tariff would be added to other pre-existing most-favored-nation duties and industry-specific trade remedy levy, which would bring the overall tariff on Taiwan-made bicycles to between 25.5 percent and 31 percent. However, Giant did not seem too perturbed by the
AI SERVER DEMAND: ‘Overall industry demand continues to outpace supply and we are expanding capacity to meet it,’ the company’s chief executive officer said Hon Hai Precision Industry Co (鴻海精密) yesterday reported that net profit last quarter rose 27 percent from the same quarter last year on the back of demand for cloud services and high-performance computing products. Net profit surged to NT$44.36 billion (US$1.48 billion) from NT$35.04 billion a year earlier. On a quarterly basis, net profit grew 5 percent from NT$42.1 billion. Earnings per share expanded to NT$3.19 from NT$2.53 a year earlier and NT$3.03 in the first quarter. However, a sharp appreciation of the New Taiwan dollar since early May has weighed on the company’s performance, Hon Hai chief financial officer David Huang (黃德才)
NVIDIA FACTOR: Shipments of AI servers powered by GB300 chips would undergo pilot runs this quarter, with small shipments possibly starting next quarter, it said Quanta Computer Inc (廣達), which supplies artificial intelligence (AI) servers powered by Nvidia Corp chips, yesterday said that AI servers are on track to account for 70 percent of its total server revenue this year, thanks to improved yield rates and a better learning curve for Nvidia’s GB300 chip-based servers. AI servers accounted for more than 60 percent of its total server revenue in the first half of this year, Quanta chief financial officer Elton Yang (楊俊烈) told an online conference. The company’s latest production learning curve of the AI servers powered by Nvidia’s GB200 chips has improved after overcoming key component
UNPRECEDENTED DEAL: The arrangement which also includes AMD risks invalidating the national security rationale for US export controls, an expert said Nvidia Corp and Advanced Micro Devices Inc (AMD) have agreed to pay 15 percent of their revenue from Chinese artificial intelligence (AI) chip sales to the US government in a deal to secure export licenses, an unusual arrangement that might unnerve both US companies and Beijing. Nvidia plans to share 15 percent of the revenue from sales of its H20 AI accelerator in China, a person familiar with the matter said. AMD is to deliver the same share from MI308 revenue, the person added, asking for anonymity to discuss internal deliberations. The arrangement reflects US President Donald Trump’s consistent effort to engineer
RSS