The National Science and Technology Council (NSTC) on Friday launched a funding plan to help Taiwanese chip designers double their global market share within 10 years, making Taiwan the ultimate hub for the world’s chip design industry. The council said it earmarked NT$12 billion (US$375.4 million) for talent incubation through the buildup of infrastructure and equipment sourcing mainly for state-financed organizations for the first year.
The Taiwan Semiconductor Research Institute and the Industrial Technology Research Institute (ITRI) would be the major beneficiaries, according to the council’s initial arrangement. The council said it hoped the effect would spread to a variety of local industries, although it did not elaborate on how that would happen.
The budget for the remaining nine years is still undecided, NSTC Minister Wu Tsung-tsong (吳政忠) said. The goal is to help Taiwanese chip designers seize a 40 percent market share worldwide by 2033, from 18 percent last year. Compared with the more than 60 percent held by Taiwan’s foundry and chip packaging and testing companies, chip-designing houses “have abundant space for improvement,” Wu said.
However, the government agency’s latest plan goes against the expectations of local chip designers. In March, the nation’s major chip designers, led by MediaTek Inc, published a white paper which urged the government to formulate a state semiconductor strategy and comprehensive “chip act” that includes local chip designers and smaller-scale semiconductor companies, as they face competition from China.
Specifically, the chip designers hope they can apply for the tax incentives granted to local chipmakers under the nation’s “chip act.” The new amendments to the Statute for Industrial Innovation (產業創新條例) provide a legal basis for the government to provide chip companies with subsidies for the development of advanced technologies such as artificial intelligence, 5G and electric vehicles. Only a handful of semiconductor companies are eligible for a 25 percent tax break on their research and development spending.
Notably, the chip design sector is a technology-intensive business in which companies tend to allocate a much bigger portion of their revenue — about 20 percent — to research-and-development efforts, compared with up to 10 percent spent by chip manufacturers. Heavy R&D spending is considered one of the winning formulas to help chip designers stay ahead of their competitors.
Talent sufficiency also plays a crucial role for any industry including chip design to be successful. Taiwan’s chip designers have called on the government to relax rules on introducing skilled workers from overseas and offer more incentives for foreign students to join the local job market after graduation as local talent cultivation faces fundamental challenges with population reduction and an aging society.
The government tried to solve the talent shortage by loosening certain restrictions such as scrapping the requirement that an employee have two years’ work experience in a related field, and through offering a tax reduction for a longer period, according to new information from the Taiwan Employment Gold Card Office. However, lower salaries remain a pain point for local employers when it comes to attracting foreign workers with critical skills.
The NSTC’s proposal to uplift the global position of local chip designers is insufficient and not even practical as reflected in its initial plan. The government and the ITRI played an important role in creating Taiwan’s world-class semiconductor industry, but that was only in its budding stage more than 30 years ago. As the industry rapidly evolves, it might be more effective to help chip designers and other industries develop technologies and enlarge the talent pool through subsidy programs as many other countries are doing. “Less is more” could prove to be a better approach for the technology industry as well.
There is a modern roadway stretching from central Hargeisa, the capital of Somaliland in the Horn of Africa, to the partially recognized state’s Egal International Airport. Emblazoned on a gold plaque marking the road’s inauguration in July last year, just below the flags of Somaliland and the Republic of China (ROC), is the road’s official name: “Taiwan Avenue.” The first phase of construction of the upgraded road, with new sidewalks and a modern drainage system to reduce flooding, was 70 percent funded by Taipei, which contributed US$1.85 million. That is a relatively modest sum for the effect on international perception, and
At the end of last year, a diplomatic development with consequences reaching well beyond the regional level emerged. Israeli Prime Minister Benjamin Netanyahu declared Israel’s recognition of Somaliland as a sovereign state, paving the way for political, economic and strategic cooperation with the African nation. The diplomatic breakthrough yields, above all, substantial and tangible benefits for the two countries, enhancing Somaliland’s international posture, with a state prepared to champion its bid for broader legitimacy. With Israel’s support, Somaliland might also benefit from the expertise of Israeli companies in fields such as mineral exploration and water management, as underscored by Israeli Minister of
Chile has elected a new government that has the opportunity to take a fresh look at some key aspects of foreign economic policy, mainly a greater focus on Asia, including Taiwan. Still, in the great scheme of things, Chile is a small nation in Latin America, compared with giants such as Brazil and Mexico, or other major markets such as Colombia and Argentina. So why should Taiwan pay much attention to the new administration? Because the victory of Chilean president-elect Jose Antonio Kast, a right-of-center politician, can be seen as confirming that the continent is undergoing one of its periodic political shifts,
On Sunday, elite free solo climber Alex Honnold — famous worldwide for scaling sheer rock faces without ropes — climbed Taipei 101, once the world’s tallest building and still the most recognizable symbol of Taiwan’s modern identity. Widespread media coverage not only promoted Taiwan, but also saw the Republic of China (ROC) flag fluttering beside the building, breaking through China’s political constraints on Taiwan. That visual impact did not happen by accident. Credit belongs to Taipei 101 chairwoman Janet Chia (賈永婕), who reportedly took the extra step of replacing surrounding flags with the ROC flag ahead of the climb. Just
RSS