Taiwan’s 5G penetration rate is expected to reach 5 to 20 percent a year after telecoms launch commercial services, while consumer uptake would depend on the maturity of 5G industrial chains, Ericsson Taiwan Ltd (台灣愛立信) said.
Taiwan is among the nations introducing the high-speed wireless technology this year, but the availability of 5G-enabled devices, mostly smartphones, is still limited and prices are high, Ericsson Taiwan president Chafic Nassif told a news briefing in Taipei on Tuesday.
That would not compare to Taiwan’s rapid uptake of 4G, which in its first 12 months reached 20 percent penetration rate, the company said.
Nassif said he is positive about Taiwan’s migration to 5G, as more innovative applications would be available for average consumers, and enterprise users soon are to have more stable and secure Internet connectivity.
Taiwan’s major telecoms are to roll out 5G service in the second half of this year, with Chunghwa Telecom Co (中華電信) likely to take the lead on Wednesday next week, followed by Far EasTone Telecommunications Co (遠傳電信) two days later.
Chunghwa Telecom has said that within a year of launch, its number of 5G subscribers would reach 1 million, accounting for less than 10 percent of its total mobile subscribers.
With more 5G networks to come online later this year, the number of 5G subscribers worldwide is forecast to hit 190 million by the end of this year, according to the Ericsson Mobility Report released earlier this month.
The number is to expand to 2.8 billion by 2025, up from the 2.6 billion it estimated in September last year, accounting for about 30 percent of all mobile subscriptions at that time, Ericsson forecast.
“This is mainly due to a faster uptake in China than previously expected,” the report said.
However, the COVID-19 pandemic has delayed 5G spectrum auctions in Europe and could lead to a slower uptake of subscriptions in the near term, it said.
The report showed that consumers see resilient networks as vital during the pandemic, with 83 percent of respondents saying that information and communications technology has largely helped them cope with lockdowns.
One-third of consumers plan to invest in 5G and better broadband networks in preparation for a potential second wave of outbreaks, the report said.
Still, 4G LTE would remain the dominant mobile access technology by subscription from this year to 2025, with subscriber numbers likely to peak in 2022 at 5.1 billion, it said.
RECORD BUDGET: TSMC does plan to raise its proposed capital expenditure a lot, and could benefit if Intel outsources more of its production to foundries, analysts said Intel Corp’s earnings conference call on Thursday is expected to clarify the US semiconductor giant’s outsourcing production plans, which would be crucial regarding Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) performance, analysts said. “TSMC stands to benefit if Intel outsources more of its fabrication to foundries,” SinoPac Securities Investment Service Corp (永豐投顧) analysts said in a note on Friday. Yuanta Securities Investment Consulting Co (元大投顧) was more cautious, saying that Intel’s contribution initially would be limited, but its outsourcing plans would still highlight TSMC’s leadership in technology, it added. “Intel will continue to manufacture server or high-end central processing units [CPUs], which have higher
MediaTek Inc (聯發科) yesterday announced it would give incentive bonuses totaling NT$1.7 billion (US$59.7 million) to its employees and those at the firm’s major subsidiaries, after the smartphone chip supplier’s revenue hit US$10 billion last year. This is the biggest incentive bonus the Hsinchu-based handset chip designer has ever distributed in its 23-year history. About 17,000 full-time employees of MediaTek and five of its subsidiaries, including Richtek Technology Corp (立錡科技) and Airoha Technology Corp (絡達科技), would receive a “red envelope” of NT$100,000 each, the company said. “Surpassing US$10 billion is just the beginning. We will continue to [grow] on this basis,” MediaTek
TO SPUR REVENUE: The contract chipmaker expects its profit to grow 15 percent this year, outpacing the foundry industry’s projected advance of about 10 percent Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday raised its projected capital spending for this year by 62 percent, a new high, in an attempt to satisfy customer demand for advanced technologies in the production of central processing units, high-performance-computing (HPC) devices and 5G applications. After investing US$17.24 billion last year, TSMC this year plans to spend US$25 billion to US$28 billion on manufacturing equipment and new facilities, including a fab in the US. About 80 percent of the budget would be allocated for developing advanced technologies including 3, 5 and 7-nanometer technologies, the company said. The larger-than-expected capital spending prompted speculation
CHINESE TIE-UP: The firm said its services with Zhejiang Geely would be related to vehicles, parts, intelligent drive systems and automotive ecosystem platforms Apple Inc’s local manufacturing partner Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) outside of Taiwan, is setting up a vehicle venture, strengthening its automotive capabilities at a time when technology companies, including its California ally, are looking to expand in automaking. Hon Hai is joining forces with Chinese automaker Zhejiang Geely Holding Group Co (浙江吉利控股集團) to provide production and consulting services to global automotive enterprises, the companies said in a statement yesterday. The production and consulting services are related to whole vehicles, parts, intelligent drive systems and automotive ecosystem platforms, Hon Hai said in a filing with