Intel Corp, the world’s biggest chipmaker, yesterday said it planned to spend US$500 million during the five-year period ending in 2013, largely on purchasing WiMAX products made by Taiwanese manufacturers.
Intel, a major promoter of WiMAX, also called fourth-generation (4G) technology, planned to procure WiMAX-enabled communications products from local firms starting in the second half of this year, said Lil Mohan, a managing director of Intel’s WiMAX Program Office in Taipei.
The procurement would not include the purchase of key components used in computer and information technology devices made by local companies, Intel said.
“No specific items are decided yet. But, we hope the purchase will increase in accordance with the progress of WiMAX technology,” said Robert Wang (王定愷), director of Intel’s WiMAX Program Office in Taiwan.
Mohan expects Asian operations to commercially launch WiMAX services next year or in 2010 after the US, which will probably unveil the service in the third quarter this year.
Separately, Intel signed a memorandum of understanding with the Ministry of Economic Affairs to form a joint venture aiming to develop the nation’s WiMAX ecosystem, according to a joint statement.
“That is the area we will be focusing on, making system integration for all kinds of companies. So we want to create some kind of business company, which will start by providing system integration service,” Mohan said.
Mohan said WiMAX is an open platform so system integration would be the biggest problem in the early stages.
“This [venture] is not just a test center,” he said.
Mohan declined to say how much money Intel planned to invest in the new entity and which companies would be possible partners. The government planned to use its National Development Fund (國發基金) to fund the venture.
The Chinese-language Commercial Times said earlier this month that Intel was considering investing US$4 billion to US$10 billion in the WiMAX joint venture and was in favor of working with PC maker Acer Inc and wireless networking equipment maker Gemtek Technology Co Ltd (正文科技).
The report said Intel could invest in local WiMAX operators such as local license holder Tatung InfoComm Co (大同電信).
“We are talking to the world’s WiMAX operators, including those in Taiwan,” Mohan said.
Details about the investment target, amount and business model would be finalized by the end of this year, according to the statement.
The business entity would provide consultation on WiMAX network infrastructure design and integration of WiMAX equipment services and applications, the statement said.
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