The technology sector’s research and development (R&D) spending reached a record NT$820.6 billion (US$26.72 billion) in 2021, up 14.2 percent from the previous year, the National Science and Technology Council said on Friday.
The R&D spending accounted for 3.77 percent of Taiwan’s GDP in 2021, also setting a new high and rising from 3.61 percent in 2020, the council said in a report on its Web site.
The private sector accounted for 84.9 percent of tech R&D spending in 2021 with NT$696.3 billion, up 16.4 percent from a year earlier, while the public sector spent NT$124.3 billion, up 3.1 percent annually, the council said.
Photo: Ann Wang, Reuters
Enterprises, particularly those in the semiconductor industry, served as the major growth driver for tech R&D spending, due to solid global demand for chips made with high-end processes used in emerging technologies such as 5G applications and artificial intelligence of things, as well as online learning and remote work, which were prevalent during the COVID-19 pandemic, the council said.
R&D spending by enterprises totaled NT$691.59 billion in 2021, up 16.6 percent from a year earlier, it added.
As many tech giants are based in the Hsinchu Science Park (新竹科學園區), the Central Taiwan Science Park (中部科學園區) and the Southern Taiwan Science Park (南部科學園區), which are supervised by the council, these accounted for 45.4 percent of enterprises’ total R&D spending, up from 42.3 percent in 2020.
In addition to semiconductor suppliers, the science parks also house manufacturers from the computer and peripherals, communications, optoelectronics, precision machinery and biotech industries, which also spent considerably on R&D, the council said.
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