Supply chain
MOEA recognizes alliances between foreign and Taiwanese IT firms for creating new value
Press release
Tuesday 3 December 2013

To recognize international firms for their contributions to Taiwan's IT industry, the Ministry of Economic Affairs (MOEA) held the "2013 Outstanding Electronics and Information International Partner Firm Awards and Appreciation Banquet" in Taipei on November 27. Minister of Economic Affairs Chang Chia-juch presented 20 awards to 18 foreign firms earning recognition as best in six major categories.

The six categories were "technology value-added partner," "software integration partner," "green system partner," "strategic bright spot partner," "versatile innovation partner," and "market expansion partner."

The following is a list of the award-winning firms and the basis on which they were granted their awards:

1. "Technology value-added partner": Foreign firms making special contributions by engaging in joint R&D with Taiwanese partners and establishing R&D centers in Taiwan. In alphabetical order, the three award-winning firms in this category were Applied Materials, ASML, and TDK.

2. "Software integration partner": The top three international firms selected by Taiwanese information hardware and software firms on the basis of "outstanding contribution to enhancement of Taiwan's information industry software and systems integration competitiveness." In alphabetical order, the three award-winning firms in this category were Google, Microsoft, and Tokai.

3. "Green system partner": The top three international firms selected by Taiwanese information hardware and software firms on the basis of "outstanding assistance with Taiwan's development of a green systems industry, and further assistance to Taiwan's green system exports." In alphabetical order, the three award-winning firms in this category were Hitachi, HP, and Panasonic.

4. "Strategic bright spot partner": The top three international firms recommended by the Industrial Development Bureau on the basis of strategy direction consistent with government policy, assistance with optimization of Taiwan's industry structure, and contribution to raising added value. In alphabetical order, the three award-winning firms in this category were Ericsson, Kodansha, and Micron.

5. "Versatile innovation partner": The top three international firms selected by Taiwanese information hardware and software firms on the basis of "assisting Taiwanese firms to introduce innovative services, establishing an applied R&D environment in Taiwan, and providing innovative service manpower training." In alphabetical order, the three award-winning firms in this category were Google, IBM, and Sony.

6. "Market expansion partner": The top five international firms determined on the basis of weighted calculations using indicators announced the Industrial Development Bureau, including total purchases in Taiwan throughout the year, total purchases of products manufactured in Taiwan throughout the year, effective tax rate during the most recent three years, and growth in number of employees during the most recent three years. The top five award-winning firms in this category were, in alphabetical order, HP, Dell, Qualcomm, Lenovo, and Broadcom.

To ensure that Taiwan possesses an all-encompossing information and communications industry supply chain, the MOEA has been encouraging the use of technology to strengthen value chain depth, and the enhancement added value and interdisciplinary cooperation to accelerate industrial upgrading and help Taiwan become a global innovative trade hub. Starting from last year, the indicators by which the award-winning firms are selected have been broadened as part of a shift from the emphasis on foreign firms' purchases in Taiwan to the establishment of partnerships between foreign firms and Taiwanese firms. Because of this, this awards activity seeks to stress a vision of "enhancing value and promoting partnership" and "diverse innovation and considerate services."

Apart from recognizing foreign firms for their introduction of new technologies to Taiwan, these awards also expressed appreciation of those firms establishing R&D centers in Taiwan, enhancing the software and systems integration capabilities of Taiwan's information industry, jointly engaging in product development with Taiwan's ODM firms, and thereby helping to train innovative manpower and create employment opportunities, as well as helping Taiwanese firms to develop a green systems industry and expanding investment in Taiwan in conjunction with government policies, and thus helping to enhance the country's overall industrial competitiveness. Apart from this, the MOEA also hopes that foreign firms will join forces with Taiwan's information and communications industry and establish industry chains and partnerships in the areas of software, content, systems, services, and green products at this key moment for industrial transformation, and thus help realize the economic vision of "a strong Taiwan, connected with the Asia-Pacific, and deployed globally."

According to Minister Chang, in order to respond to changes in the global environment and the challenges of cross-Strait industrial development, the MOEA will continue to lead Taiwan's ICT industry in the direction of a high added value industry structure and enhanced international competitiveness. The MOEA will take "three industries/four modernizations" (service strategies in manufacturing, internationalization and technologization of service industry, and specialization of traditional industry) and mid-sized "Backbone Enterprises" as its main focal points as it promotes the continued development of industry in Taiwan. Because of this, apart from establishing a highly attractive investment environment, the MOEA will also emphasize the establishment of long-term partnerships between foreign and Taiwanese firms and a higher level of industry chain cooperation, in hope that Taiwanese industry and foreign collaborators can jointly enter a new era amidst the intense industrial transformations of the post-PC age.

Looking back on the past decade, foreign firms purchases in Taiwan have continued to soar. According to the Institute for Information Industry's MIC survey, foreign information firms made purchases worth close to US$91.7 billion in Taiwan this year (2013), and this was nearly double the figure of US$48.5 billion of ten years ago (2003). The MIC survey also estimated that the total output of Taiwan's information hardware industry, including both exports and domestic sales, will surpass US$134.2 billion in 2013. Apart from domestic firms' dedicated efforts to strengthen the industry and their innovative R&D undertakings, the current achievements of Taiwan's information industry owe much to the long-term partnerships established between foreign firms and cooperating Taiwanese firms, which have shed light on the contributions to the industry made by these foreign collaborators.

Apart from recognizing and expressing gratitude to the foreign companies that have made such great contributions to Taiwan's information industry, this awards event also featured the invitation of approximately 75 persons from domestic firms, associations connected with major international cooperating firms, and foreign trade offices in Taiwan (notably the American Institute in Taiwan). High-level personnel from the Taiwan Electrical and Electronic Manufacturers' Association, Information Service Industry Association of R.O.C., Institute for Information Industry, Quanta, Compal, Liton, Wistron InfoComm, Pegatron, Inventec, BenQ, Delta Electronic, Tatung, Via Technologies. Qisda, Microstar, Mitac International, Alpha Networks, MitraStar, Wistron, Mitac, Systex, International Integrated Systems, and Inotera were in attendance, along with the heads or representatives of government units including the Industrial Development Bureau, Industrial Technology Department, Industrial Development and Investment Center, and Investment Commission.

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