Taiwan is one of the Asian countries boasting remarkable technological advancements and innovations in the communications industry. According to the United States International Trade Administration, Taiwan leads the high-tech industry thanks to its aggressive investment in research and development (R&D), manufacturing, and innovation.
5G Networks and Beyond
Despite their technological success, Taiwanese manufacturers have faced operational challenges due to the limitations of traditional networks and cumbersome production processes. However, these challenges have been resolved through the integration of private 5G networks with advanced technologies such as artificial intelligence (AI) and Internet of Things (IoT) applications that increase efficiency and adaptability.
Taiwan’s strong semiconductor industry is a key factor in contributing to the 5G supply chain. Companies such as Taiwan Semiconductor Manufacturing Company (TSMC) and MediaTek have played a key role in advancing the chipsets that power 5G devices. Chipsets are used to enable efficient data transmission across networks. TSMC is considered a major player in the global semiconductor market and maintains its position as a key chip supplier to technology giants such as Apple and Qualcomm.
In addition to its dominance in the hardware industry, Taiwan is also considered to be at the forefront when it comes to network infrastructure. Chunghwa Telecom and Far EasTone Telecom have been working tenaciously to roll out 5G widely in the country. According to Ookla, Chunghwa Telecom’s 5G network has reached 97.6% of the country’s locations. In the third quarter of 2023, Taiwan’s 5G network had an average download speed of up to 265.35 Mbps, outperforming neighboring countries such as Vietnam, the Philippines, China, Hong Kong, and Japan.
Taiwan’s efforts are helping to build the infrastructure needed to improve connectivity and foster digital innovation. Taiwanese companies have actively contributed to the development of the 5G ecosystem by forming strategic partnerships and shaping the standards and specifications upon which 5G technology will function.
The use of private 5G networks has become an emerging trend in recent years. According to the Digital Ministry, there are currently more than 150 private 5G networks operational in the country, the majority of which are used in the agile manufacturing industry.
Private 5G networks can benefit a wide range of businesses across industrial sectors, offering solutions tailored to their specific requirements. These applications could include tasks such as monitoring tunnels along critical transport infrastructure, increasing operational efficiency in steel mills, and improving communications on cargo ships at sea.
Network slicing is crucial in facilitating the transition away from traditional networks. It is a technology that allows network resources to be customized to meet the specific needs of users. By leveraging network slicing, businesses can achieve higher levels of performance and scalability while reducing operational costs. This is achieved through efficient resource allocation and optimization of speed, throughput, and latency.
However, the road to widespread adoption comes with its own challenges. Both industry players and legislators remain focused on integrating communications and equipment, ensuring network maturity, and achieving cost-effectiveness. Nevertheless, Taiwan is steadily addressing these challenges and is on its way to becoming a global leader in commercial 5G deployment.
Global Supply Chain
In 2023, Taiwan, with the support of the Industrial Development Bureau (IDB), established the Telecom Infrastructure Project (TIP) Community Lab to foster global collaboration with the country’s strong 5G ecosystem.
According to the Ministry of Economic Affairs (MOEA), the TIP Community Lab is an international community of tier-1 carriers, system integrators and suppliers that aims to promote open networking technologies with the goal of eliminating vendor lock-in, encouraging supplier diversity and reducing the overall cost of ownership, thereby accelerating the global advancement of 5G technologies.
To capitalize on this current trend and enable Taiwan’s ICT industry to harness the growth potential of the 5G sector, the Industrial Technology Research Institute’s (ITRI) TIP Community Lab has become a pioneering facility in the region providing validation and certification of established products for open networking, enabling Taiwanese vendors to gain the qualifications they need to enter the global market.
Taiwan’s leadership in network infrastructure and the global 5G supply chain will benefit the country and its partners around the world. By leveraging technology to address challenges and create a stronger future, Taiwan will strengthen its role as an innovator in both the hardware and software industries.
