Taiwanese companies could generate more than US$134 billion in gross output of goods and services by 2035 from 5G-related applications, particularly in those built for the Internet of Things (IoT), the latest report released by Qualcomm Inc showed.
The economic impact from the next-generation wireless technology will also include the creation of 510,000 jobs in Taiwan over the next 18 years or so, according to a report, The 5G Economy, released by Qualcomm Technologies Inc, a Qualcomm subsidiary, on Friday.
The research was jointly conducted by IHS Markit.
IHS said that 5G technology represents a new opportunity for Taiwan to move beyond its traditional role of the major supplier of component, semiconductor and contract manufacturing services to the world’s information and telecommunications sector.
The nation could remain well-positioned to serve the 5G-related electronics manufacturing during the early developing phase of 5G technology from 2020 to 2025, but it might lose market share to its Asian rivals, especially China and Vietnam, as local manufacturers tend to focus on boosting scale and cost efficiency, making them more vulnerable to competition, IHS said.
Taiwan is to see its global market share in the computer, electronics and optoelectronics sector, drop 2.2 points to 5.2 percent in 2035 from 7.4 percent in 2015, IHS said.
China will grab a bigger slice of the pie, rising from a 27.4 percent share of the market to 32.1 percent during that period, it said.
Government industrial policies that encourage more focus on research and development and manufacturing of higher-value semiconductors such as 5G chipsets could help Taiwan retain, or possibly expand, its market share, IHS said.
The study “reinforces our confidence in the tremendous opportunity for further collaborations with the mobile ecosystem in Taiwan,” Jim Cathey, president of Qualcomm’s Asia-Pacific and India regions, told a media briefing in Taipei on Friday.
Qualcomm on Monday last week announced it planned to collaborate on 5G NR-enabled small cell technologies with the Industrial Technology Research Institute in an effort to accelerate delivery and commercialization of 5G NR small cell products and infrastructure by Taiwanese original equipment manufacturers (OEM) and original design manufacturers (ODM).
Also on Friday, Qualcomm discussed progress made by its innovation lab in Taiwan, which was formed in November last year to help local ODMs and OEMs gain faster access to the global market at lower costs.
More than 20 Taiwanese customers have tested their advanced products at the lab since its launch, and about 240 products, including smartphones, IoT and wearable devices, either had their cameras adjusted, or 4G LTE modules tested, the company said.
The lab will also support testing on small cells and IoT devices enabled by 5G technology, when 5G technology becomes relevant, S.T. Liew (劉思泰), president of Qualcomm’s local unit, told the briefing.
Source: http://www.taipeitimes.com/News/biz/archives/2017/08/14/2003676459