Taipei Times: What is the impact of the recent trade friction between the US and China on Taiwan’s information technology (IT) industry, especially after the US Department of Commerce imposed a seven-year denial of export privileges on Chinese telecom firm ZTE last month and Huawei is said to face similar sanctions?
Chen Liang-gee (陳良基): US caution against Chinese electronics products is nothing new, but it has drawn more attention lately because of US President Donald Trump’s high-profile actions.
A few years ago, people started feeling some qualms about using Huawei’s smartphones after its firmware was found to contain secret “backdoors.” While IT engineers used to install backdoors to facilitate maintenance, it is scary for users, not knowing where their personal data are being sent via the Internet.
Photo: Lin Chia-nan, Taipei Times
People have begun paying more attention to the value of data. As the divide between cyberspace and real-life space grows smaller, nations are finding it necessary to set up international borders and trade barriers to safeguard their security.
For Taiwan, about 40 percent of its IT components are exported to China, and it might get caught up if there is a crisis in the Chinese market. Taiwanese businesses should therefore pursue diversification. As the saying goes, short-term pain could turn into a long-term gain if they could reduce their reliance on a single market.
From a short-term perspective, the impact on Taiwanese firms would be limited, because many of ZTE’s key suppliers are based in the US, while Huawei has begun to manufacture its own components.
Nonetheless, local businesses should regard the conflict between the two nations as a warning, especially for small and medium-sized businesses that have closer ties to the Chinese market and realize the need to quickly make adjustments.
TT: How would you evaluate the nation’s AI development?
Chen: Since the ministry last year announced its plan to promote AI, people have gained more knowledge about the technology, with businesses across sectors pouring resources into the industry.
In the past, students of AI technology felt a disconnect, because there were few “exciting” plans to stimulate their learning, but now those interested in the industry know how they can proceed.
The key is to take the next step forward. We are glad to see so many tech giants — Alphabet Inc’s Google, IBM and Microsoft Corp — announcing plans to recruit AI talent in Taiwan, with more companies planning to follow suit.
The nation does not face a serious predicament as some people claim. At least for its tech industry, there are many opportunities that can be explored.
The government’s job is to set the stage for businesses — to help them reduce investment uncertainty and create added value. For example, we persuaded TSMC [Taiwan Semiconductor Manufacturing Co] to build its 3-nanometer fab in Tainan and Winbond to build a 12-inch wafer plant in Kaohsiung last year by showing them our plans to promote industrial transformation.
TT: Local businesses have complained about five shortages — water, electricity, land, talent and workers — that hamper development. Do you agree?
Chen: I look at such complaints as a positive sign. [Businesses] complained about shortages because they have an optimistic view of the future and plan to expand their scope.
We should also let students and their parents know which businesses have a more promising future and that many businesses have begun to pursue value creation.
The nation must utilize its limited resources to develop maximum value. The government should envision what kind of talent local businesses would need in the future, so that it can plan and cultivate related talent.
Taiwan’s manufacturing industry is robust. However, with software growing in importance, the nation should integrate both hardware and software, develop smart technology and offer technological services to lead the nation’s industrial transformation.
TT: You have just returned from a visit to the US to scout for talent. Did you have a fruitful trip?
Chen: It was very fruitful. The trip was mainly aimed at promoting President Tsai-Ing-wen’s (蔡英文) “five plus two” innovative industries plan and recruiting related talent.
We invited the presidents of 11 Taiwanese universities to join our promotion events in San Francisco, Los Angeles, New York and Boston. The presidents were eager to join us and had face-to-face discussion with academics there.
Nearly 60 academics in humanities, biotechnology, social and natural sciences, and other fields are discussing returning to Taiwan to join those universities.
We also visited Taiwanese doctoral graduates sent to work at US start-ups or conducting research at Stanford University, the University of California, Berkeley, and the Massachusetts Institute of Technology.
Many hosts told us that Taiwanese engineers are very competent, which proves the value of leaving one’s country to see the world.
The ministry plans to send more doctoral graduates to the US, as well as Israel and France, and will embark on another talent scouting trip in Europe later this year.
TT: What do you think are the strengths of Taiwanese workers?
Chen: Taiwanese receive a solid education and are known for their perseverance in tackling a problem step by step. What they lack is a stage that presents more challenges. During my visit to the US, many young people told me that they really want to return and rejoin the local workforce, but hope the nation could offer more challenging jobs. Those who opt to stay in other countries often want to accomplish something bigger or even change the world — not just to pursue transitory happiness.
The question is how can the government create jobs that are more stimulating and give them a higher sense of achievement.
For example, our plans to promote AI is to connect the nation to the global technology community. Developing AI is not an easy task, but many people are excited to take up the challenge.
While some businesses dare not invest in such an emerging industry because of the higher risks, the government can help them overcome technical hurdles and recruit sufficient talent.
To increase academia-industry collaboration, the ministry has established AI centers at National Taiwan University, National Cheng Kung University, National Tsing Hua University and National Chiao Tung University.
We have visited three AI institutes in Canada and the Alan Turing Institute in the UK, and sought to make them “sister” institutes of Taiwanese AI centers. Deputy Minister of Science and Technology Hsu Yu-chin (許有進) is also seeking collaboration with Berkeley AI Research Lab.
The ministry expects to sign deals with those centers to promote mutual personnel exchange and project collaborations later this year. If progress is smooth, we would introduce more industrial resources from overseas.
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