In terms of overseas market expansions, Mr. Atlas Tung, founder and CEO of Wishing-Soft, pointed out that for a startup who wishes to reach customers in a foreign market, on top of single-point advances such as participating in exhibitions and networking, the most important thing is to understand its own value chain and acquire key partners. It is more effective to develop a bigger market by standing on the shoulders of giants. Wishing-Soft is a company dedicated to providing environments, safety, and health (ESH) software-as-a-service (SaaS) solutions to enterprises,Facing the global market, Mr. Tung indicated that the competition is intense in the European and American markets for ESH management platforms. Therefore, Wishing-Soft has set very clear goals for its current stage: it wishes to become the most famous ESH management platform in Asia in order to facilitate legal compliance in the Asian supply chain.Currently, with existing customers expanding overseas, Wishing-Soft has also gradually expanded into the Chinese, Vietnamese, and Thai markets. By collaborating with reputable international consultancies. Wishing-Soft manages to provide key solutions to enterprises in performing compliance checks and also expand its reach to even more potential international customers.In recent years, as tackling environmental, social, and governance (ESG) and net-zero emission issues have transformed from a "nice-to-have" to a "must-have," 2022 to 2030 will be a critical period to Wishing-Soft. Mr. Tung believes that to enter the B2B market, startups will need to understand that the greatest value of their products is in understanding their customers and resolving their pain points.Thus, in the process of searching for corporate clients, Wishing-Soft does not simply divide the market as either "Taiwan" or "overseas". Instead, it pays more attention to companies that already have a certain level of concern for issues such as sustainability, ESH and ESG. Mr. Tung stated that Wishing-Soft has always been committed to how an enterprise creates value and yields profit since day one. Facing the current and future international capital market, Mr. Tung believes that it all comes down to whether a startup can provide values to its clients. A startup should figure out its "customer value chain" before acquiring seed funding. After all, focusing on creating operating revenues is only the most fundamental thing in business management.Going forward, since European countries and America have all imposed strict regulations related to corporate social responsibility throughout the supply chain, enterprises that fail to comply to ESH and carbon emission regulations may face a penalty up to 2% of their global revenues. This sizable penalty has prompted most, if not all enterprises to look for the relevant solutions.To satisfy consumer demands and comply with import/export regulations, downstream vendors have begun to request their upstream supply chains to comply with the relevant regulations. Mr. Tung pointed out that Wishing-Soft will be able to enjoy more advantage once the development is prevalent throughout the entire supply chain. Based on its software platform, Wishing-Soft will be able to help the entire supply chain speak the same language and integrate all information. Therefore, Wishing-Soft will not be serving isolated customers in the future, but rather, the entire supply chain and all customers throughout a specific industry.In regard to the advantage of Taiwanese startups in handling sustainability issues facing supply chains, Mr. Tung is of the opinion that Taiwan has many factories and the density of supply chains is very high. Many foreign business management centers and supply chains of internationally renowned Taiwanese manufacturers are situated here. The industrial clustering effect will significantly reduce the time required to visit customers. It also facilitates enterprises to work together, thereby accelerating the solution to challenges and problems facing an industry, and creating ESG-related value for that industry chain. Moreover, Taiwanese supply chains are widely acclaimed throughout the world. If a company can perform well and succeed in Taiwan, it can also draw on these experiences as it expands worldwide.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html

Mr. Tony Yu, partner of Mesh Ventures, indicated that the success enjoyed by the Silicon Valley model today, is a result of mind collision and brainstorming from two groups of people: firstly, countless entrepreneurs coming from different countries who are committed to changing the world through new technologies; and secondly, venture capitalists with unlimited resources who enjoy enriching their assets. After decades of cultivation under free-market capitalism, the integration of these two types of people has given rise to today's Silicon Valley.Mr. Yu believes that Taiwan does not have to follow suit and completely copy the Silicon Valley experience. Nevertheless, it can draw on its innovative mindset and successful experience to formulate a business model that fits the local environment based on Taiwan's own industry strengths and conditions. Compared with the B2C industry, which has to be established on a market with a large population base, Taiwan has a better chance in developing a unique entrepreneurial ecosystem in the B2B market.Mr. Yu pointed out that the reason why entrepreneurship is so challenging and stressful is on top of focusing on innovative technology, products and services, and its business model, a startup team also has to learn to grasp the seven vectors of business management, i.e., production, sales, human resources, information management, development, financial management, and regulations, under time constraint.In particular, production refers to the entire production process of the startup products and services, from upstream raw materials, to adding value to the products and services, and all the way to delivery to customers. Sales refers to two distinctively different tasks, namely, marketing and sales. The former involves identifying the market and setting its positioning, while the latter involves engaging in strategic applications and closes the deal using sales techniques. Human resources do not simply mean the team's recruitment, training, or retention, but also include selecting investors and human resource management. Information management refers to software and hardware tools that are indispensable in information and communication, and cyber security nowadays. They are a necessity for developing products, building services, and business management. Development refers to research and development (R&D). It is the core competency of a tech startup. Financial management refers to the management and planning procedures of finances, accounting and fundraising. Regulations are pertaining to legal affairs, including legal compliance, intellectual property protection and deal negotiations.The only key to an enterprise's continued success in the market is to possess all seven business management skills. More importantly, the core members must understand what they lack before they can focus on how to gradually make up for their inadequacy in skills and resources, such as industry networks, accelerators, or venture capitalists, through various means in a goal-oriented and deliberate manner. The faster a company could strengthen the "seven-legged table," the sooner it can achieve sustainable success. This is a mental preparation that all entrepreneurs should have.When it comes to the development trend of Taiwanese startups over the next five to ten years, Mr. Yu believes that the world is changing very rapidly, and emerging opportunities often come and go. In the present stage, Mesh focuses on investing in the so-called "new mobile technology" platform and its derivative services including electric vehicles, the Internet of Vehicles (IoV), and autonomous vehicles. Other fields such as high-performance computing (HPC) and the Internet of Things (IoT) applications are also favorites. In particular, Mesh believes that enabling technologies, which are necessary for the aforementioned technologies and promote shared use, will continue to undergo positive growth over the next five years.Mr. Yu also pointed out that if Taiwanese startups wish to create more robust international competitiveness and influence, there is much room for growth in terms of innovations in their business models and their understanding of the international market. A collective effort for improvement is therefore required. Underpinned by such foundation, if the Taiwanese startup teams are able to showcase their qualities and skills in terms of technological management, and utilize their competencies in design optimization and problem solving to help industry grow and advance, the potential business opportunities would be endless.As a whole, Mr. Yu believes that Taiwan needs more success stories from the new generation of entrepreneurs, so that future startups can look up to them as role models.From a long-term perspective of building a comprehensive venture capital (VC) environment, and energizing the upstream and downstream of the VC ecosystem, Mr. Yu wishes to encourage corporate venture capital (CVC) to be more proactive in investing in and acquiring startup teams, as this would invigorate and bring brand-new visions to the market. With the support of ample resources and partners, the Taiwanese entrepreneurial ecosystem could undergo a more healthy and robust growth, and give rise to more exciting possibilities.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html

Known for being a leader in Taiwan's information service industry, Systex Corporation has been reinforcing its efforts to incubate Taiwanese startups since 2018. It has also actively expanded its software ecosystem. Each year, its AI+ Generator Program (AGP) would select eight startups in cloud computing, artificial intelligence (AI), Internet of Things (IoT), information security, retail technology and marketing technology (MarTech). Systex would help them expand their business scale at home and abroad by matchmaking them with Systex's thirty thousand enterprise clients, as well as other ecosystem partners to form partnerships.In general, when large enterprises search for new technologies, new products or new directions, they would opt for either internal or external innovation. In terms of these two strategies, Mr. Richard Tang, Vice President of Systex, indicated that at Systex, both strategies are utilized synchronously and in complement of each other.Compared with using in-house research and development (R&D) to maintain control of the latest technologies, time to market (TTM) is a much more important factor to Systex. By working with startups using external innovative models, an enterprise can save up to two to three years of R&D time, thereby accelerating its TTM while also preventing competitors from taking over the market share during the development process.When choosing a startup to partner with, Mr. Tang pointed out that the first and foremost factors that enterprises value are its methods for solving problems and pain points, and whether the startup has accurately targeted the pain points. Secondly, enterprises will also explore whether the technological skills and business models of the startup can be scaled in the international market. The potential for scalability refers to whether its products can be standardized and go global, rather than being something that are merely project-based. In particular, Systex pays much attention to whether a product or service has marketing feasibility in Taiwan and the Greater China region. Thirdly, the sustainability of the products and team is also very important, as this provides the most basic guarantee to customers.Mr. Tang added that branding is an issue for Taiwanese startups. If a startup positions itself as a "Silicon Valley-based company," its credibility in the software industry is often elevated. This is the harsh reality. An additional challenge facing the Taiwanese teams in their global expansion effort, is whether these teams have enough technological competencies to create "localized" product designs for different markets during the software development stage.In order to assist Taiwanese startups to enter the international market, Systex has also provided points of contact and potential channels in the market. Mr. Tang pointed out that, to an entrepreneur, the most difficult part of international expansion is reaching out to local enterprises, and incidentally the value of Systex lies in its vast client base throughout the world. To any startup, the opportunity to receive guidance on increasing the business potential and international perspective of its products or services, and being introduced to local customers for proof of concept (PoC), would be a great starting point for international expansions.Mr. Tang wished to appeal to the government that, from a long-term perspective, on top of leading startups to attend exhibitions overseas, the government should also encourage schools to nurture more international talents, including encouraging more overseas Chinese students and international students to study and work in Taiwan. Startups should also be given more incentives to recruit them after they graduate, so that when they return to their respective home countries, they could potentially become local partners to Taiwanese enterprises. They will be able to maximize the strengths of Taiwanese enterprises and accelerate the international developments of Taiwanese startups.Mr. Tang commented that the government needs to take bolder moves in encouraging startup developments. Just like how Mr. Yun-Suan Sun and Mr. Kwoh-Ting Li developed the science parks in the past, entrepreneurs also need larger venues to create interactions and exchange ideas. International enterprises should be invited to station in these venues and talents should be recruited. Once the number of enterprises has reached a certain level, there will be plenty of people. The convergence of start-up mentors, successful entrepreneurs, coaching teams, aspiring entrepreneurs, and international brands will then underpin the development of entrepreneurship in Taiwan.Over the past decades, the Taiwanese government has dedicated all its efforts to facilitate the development of the manufacturing sector, including the provisions of water, electricity and optimizations. Nevertheless, the Taiwan economy has relied on these science parks for 40 years. What is next for Taiwan? Mr. Tang believes that one of the most important goals over the next 40 years will be to nurture entrepreneurship in the Taiwanese software industry by encouraging Taiwanese youths to expand globally, as well as welcoming international talents to come to the Taiwanese market.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html

In terms of roles that an accelerator plays in the entrepreneurial ecosystem, Ms. May Yang, COO of Garage+, believes that in the case of Silicon Valley, the emergence of the entrepreneurial ecosystem is closely related to talents, capital, and government policies. Meanwhile, for developing countries, accelerators would play more significant roles in the entrepreneurial ecosystem.Do corporates see startups as investment targets, or do they view their involvements as merely "partnerships"?Ms. Yang pointed out that this is often determined by the organization of a corporate. For instance, some companies comprise a corporate venture capital (CVC) department that is dedicated to understanding investment targets related to the developments of their parent companies, while other companies which are more focused on business partnerships in the current stage, often collaborate with startups to co-develop products, and engage in technological cooperations and information exchange. In these cases, subsequent investment opportunities will only emerge when the startups' technological development becomes closely integrated with the companies.Nevertheless, corporates have become more proactive in evaluating startups nowadays, whether they are contemplating investment ideas or simply technological partnerships. Ms. Yang pointed out that, in terms of Garage+'s corporate partnerships, they are mostly focused on three aspects in the startup scene: first of all, they are mostly focused on software startups in the vertically integrated industry; in particular, artificial intelligence (AI) and data analytics and applications. Secondly, they are interested in software and hardware integration. Corporations can use innovative technologies and solutions to solve existing problems and optimize existing processes to create value. And finally, they are also interested in areas related to digital medical care and healthcare.Each year, Garage+ selects 30 startups from Taiwan and overseas respectively. Different departments from major corporates, such as CVC, research institutions, new business divisions, and Office of Chief Technology Officer (OCTO), will meet with these startups based on their diverse needs. Ms. Yang pointed out that most corporates are mainly looking for business partnerships, and some of their particular interests include: cutting-edge technologies such as artificial intelligence, quantum computer, batteries and etc. A company is most likely searching for the next cutting-edge technology that will help its core business to undergo a robust growth over the next five to ten years when it looks to collaborate with a startup. Therefore, many Taiwanese companies are very interested in the performance of innovative projects from startups from both home and abroad.When discussing the expansion of Taiwanese startups overseas, Ms. Yang indicated that if a startup team is from a smaller country such as Taiwan, Singapore or Israel rather than a country with a gigantic market such as the United States, China, Southeast Asia, or Europe, it definitely has to collaborate with an international company or organization if it hopes to scale its business in the global market. This would help the startup to expand its business while standing on the shoulders of a giant.The first key to a startup's international development is "knowing where your customers are." The second is to "know where the market with the most potential and best conditions to grow is," followed by "finding a good pathfinder and partner." Ms. Yang indicated that pathfinders for international development of a startup have access to local startups, accelerators, venture capitalists, or corporates. Startups can only truly understand local markets via these networks.Garage+ is committed to leading foreign startups to entering the Taiwanese market. On one hand, this means bringing foreign resources to Taiwan and connecting technological experience of foreign startups to existing industrial strengths of Taiwan. On the other hand, it also helps to create more opportunities to connect with the international community through localization of foreign startups.Compared with the startup teams overseas, although Taiwanese startups are equipped with technological advantages, there is room for improvement when it comes to operations, marketing and executions. These areas make them less capable at addressing issues related to international expansion. Therefore, inviting international startups to interact with the local industries in Taiwan can facilitate collaborations. The Taiwanese teams can learn more about the international market, whether through joint R&D or business partnerships, or by providing solutions to foreign customers via collaborating with foreign startups.Ms. Yang believes that Taiwanese startups need to be equipped with resources from the international venture capital community if they want to expand globally. In this regard, Garage+ can also introduce new paragons for the Taiwanese entrepreneurs to learn from and work with by recruiting international startups. In particular, the Taiwanese teams can learn more about how international teams engage in marketing, fundraising, and forming exit strategies, including accepting potential corporate M&A deals. These are all the things that the Taiwanese teams can pick up.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html

In terms of Taiwan's entrepreneurial environment, Mr. Jerry Chen, an investor in Mucker Capital for the Asia Pacific region, is of the opinion that Taiwan has very little visibility in the international market in terms of software entrepreneurship, including in Software-as-a-Service (SaaS) solutions. To date, Taiwan has not produced any iconic company in this industry. Nevertheless, based on its past experiences in ICT, semiconductors, and manufacturing, as well as its pool of outstanding software developers, Taiwan is in fact equipped with the potential to develop B2B SaaS products. In this sense, by assuming the roles of a venture capitalist and an accelerator, Mucker Capital not only provides seed capital, but also helps startups overcome growth bottlenecks and accelerate their growth toward the next phase.In 2022, MuckerLab was established in the Taiwan Tech Arena (TTA) and began to recruit startup companies from Taiwan and the Asia region.Mr. Chen also pointed out that in the initial stage, startups should focus on building their products before the pre-seed round. Following the seed stage, they should enter into the product/market fit stage. For the early stage, Mucker suggests startups to focus on building customers, and finding demand and market.Currently, Mucker does not limit its funding to any particular industry in terms of investing in early-stage startups. However, given Taiwan's economic and industrial environment, startups in BSB SaaS services will possess more growth advantages in vertical industries such as logistics, manufacturing, and information and communication. Nevertheless, startup teams should accurately understand the pain points of their respective industries. Particularly for the vertical B2B SaaS market, a startup team will only have access if it can find the right pain point and achieve a scalable business in the market.Speaking of funding activity in Taiwan's entrepreneurial ecosystem, Mr. Chen also commented that it is an undisputed fact that Taiwan does not have ample resources designated as seed capital for startups. The market is also subject to various constraints. Although a small market has its merits, it also limits the estimated value and development of a startup. For a venture capital, a startup can only have access to more diverse exit strategies if it is capable of solving bigger problems.Therefore, as a VC firm who invests in seed capital for startups, Mucker is dedicated to securing international resources and funds from North America, Asia, and Europe to assist startups to expand overseas and develop the global market.Mr. Chen also mentioned that as a venture capital firm from the United States, Mucker will certainly take "market size" into account when considering its investment portfolio. Similarly, this is also one of the first and foremost factors to most foreign venture capitalists before making an investment.Although for certain industries, economies of scale may be achieved in the Taiwanese market alone, more often than not, the Taiwanese market environment tends to constrain the business mindset for managing the international market. Thus, Mr. Chen believes that if a Taiwanese startup wishes to obtain seed funding, it has to turn to the market overseas. To achieve this goal, visiting those markets in person is a necessary process. After all, even in a country as small as Taiwan, customers located in Taipei and Kaohsiung would still potentially differ in terms of business style, corporate culture, and market demand, not to mention the overseas markets. This is also the reason why Mucker continues to emphasize the importance of connecting with foreign resources.Speaking of expanding in the international market, Mr. Chen indicated that a team needs to find out which market offers more room for growth in terms of the pain points that it could resolve. Moreover, the said market has to be big enough in terms of market size. Once the target market becomes clear, a team needs to have the determination and a crew who can take root in the market over the long haul. This is the only way for the team to assimilate into the local environment, understand the market needs and the rules of the game, and grasp local rules for development, before it can build up local networks, thereby making effective business development progress.Meanwhile, Mr. Chen believes that the impact that the global economic developments have on early-stage startups would be limited. This is because early-stage startups need to mostly focus on developing products and customers. Basically, venture capitalists and others will continue to invest as long as their products are robust. For instance, Mucker continues to pay attention to developments of startup teams and makes investments in them proactively.However, for teams with fundraising needs, they may feel the pressure at this point. On the one hand, market investors are taking longer to evaluate the startups. On the other hand, they are also rethinking, evaluating, and even lowering the value of the startups. All these factors will affect their fundraising performance. In other words, market investors will focus more on the business operations of the startups. Therefore, for startups with product capability and a sound operation, as long as they can withstand the current economic fluctuations, there will be more opportunity and room for growth.Many startups in Taiwan must pay attention to their own technologies and product developments. Under the current trend, they should strengthen their business operation skills and establish their sales and marketing mechanisms, so that they can in fact embrace greater development opportunities in the future.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html

Taiwanese startups can no longer involve in "me-too" or "me-better" businesses, but must plan ahead and develop "me-only" technologies. The reasons are because the scales of Taiwanese venture capital (VC) and local market are limited, and does not have an advantage in demographic dividend. Mr. Michael Kao, President of Taiwan ITRI New Venture Association (TINVA) said that environmental, social, and governance (ESG), pharmaceuticals, smart manufacturing, and the semiconductor industries are some of the cutting-edge technologies that Taiwan should plan ahead and invest in. Given Taiwan's complete information and communications technology (ICT) industry chain, there is a good chance that Taiwan can gear to become a key hub for innovations and startups for the Asia Pacific region.Mr. Kao pointed out that the government can consider a more proactive policy in providing concessions to startups producing cutting-edge technology. This is to encourage enterprises in adopting an operational model for external use of innovation. The government can assist enterprises to transform and achieve diversified developments while accelerating the development of innovative competencies in Taiwan. Mr. Kao has also pointed out that Taiwanese enterprises should be more proactive in investing in external use of innovation. He recommends enterprises to allocate 5% to 10% of their annual earnings for collaborations with mainstream venture capitalists both at home and abroad to make investments in external startup.Mr. Kao commented that finding ways to establish Taiwan as a base that is "friendly to international startups that wish to expand into the Asia Pacific region" is a pressing matter that the government should give serious considerations to.Currently, the semiconductor industry remains Taiwan's strength in industry. It continues to present a fairly substantial development potential for the future, whether in the upstream materials and production of precise machinery, or IC design and compound semiconductors.Additionally, environmental, social, and governance (ESG) investing is also an area that Taiwanese enterprises are keen to engage in. Concerns for ESG has driven up the developments and needs for carbon neutrality, circular economy, new energy, electric vehicles (EV), batteries, energy storage, and a ban on plastics, all of which are areas that Taiwanese startups should pay attention to and invest in.Based on the existing footing in the ICT industry, technological developments, and talents, coupled with numerous advantages including an assortment of excellent medical and healthcare professionals in Taiwan, medical equipment has become another key area of innovation for Taiwanese startups.Besides semiconductors, ESG solutions and medical equipment, digitization and artificial intelligence (AI) in the manufacturing industry are also forthcoming trends that Taiwanese teams should focus on. As the severity of labor shortage problems will continue to rise in the future due to low birth rate, labor costs will inevitably continue to rise. The demand for automated production around the world will become even stronger. Compounded by net-zero emission issues, smart manufacturing will become a key trend in industrial developments going forward.Mr. Kao believes, the Taiwanese government and enterprises must plan ahead and seize the historic opportunities of the China-US trade war and the boom in innovative technologies over the next 20 years with a strategic mindset and pioneering thinking. The government should proactively collaborate with leading VCs from home and abroad in either investing in or acquiring innovative technology firms to plan for key technologies over the next decade.Mr. Kao pointed out that recessions are high time for making investments for the future. He highlighted that during a downturn in the capital market, valuations of startups tend to be more reasonable. Thus, now is the ideal time for investing in them. By proactively collaborating with leading startups from Taiwan and overseas, Taiwanese enterprises will lead startups to entering the Asia Pacific market in the future. At the same time, Mr. Kao also welcomes leading foreign startups to set up operations in Taiwan by using manufacturing resources in Taiwan and the market resources of the Asia Pacific region. This will make Taiwan an important base for entering the Asia Pacific market. Going forward, it is highly likely for Taiwan to become one of the key hubs for innovation in the Asia Pacific region due to its competitive edge in being an open and free technological center.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.htmlChairman of TINVA, Michael KaoPhoto: TINVA

Mr. Wufu Chen, Chairman of Acorn Campus Taiwan pointed out that, facing a new wave of lifestyle paradigm shift, he and his company will assist Taiwan in forming an international team with globalized visions and help Taiwanese startups connect with international talents, markets, and capital. On top of technological skills, members of the international team should also possess international vision and perspective. They must be able to define their market and customers, and engage in dialogs with the international market, thereby establishing a footing for the new economy and industry developments in Taiwan.For the past few years, enterprises not only face challenges in operating growth and diversified management, they also need to deal with operating pressure arising from digital transformation as the global economy embarks on a new phase of paradigm shift. In the past, Taiwanese enterprises often sought to deal with such problems through internal innovation and solve business problems accordingly. Nevertheless, more and more enterprises have begun to look for external innovative collaborations and establish new business models. This is why corporate venture capital (CVC) has become one of the solutions for enterprises.Mr. Chen pointed out that there is a chance for CVC to make up for the inadequacy of VC in Taiwan. In particular, in terms of all next-generation products and services, the value of physical products and hardware is gradually decreasing, while the value of services generated from software and applications, including artificial intelligence (AI) and software-as-a-service (SaaS) solutions, is rapidly increasing. This implies that enterprises need to accelerate their investments in digital transformation. For Taiwanese enterprises whose business mindset is largely focusing on OEM and ODM, partnering with startups to acquire service contents, flexible responses, and an understanding of the digital generation can help accelerate the progress of digital management for these enterprises.Mr. Chen emphasized that Taiwan has competent local entrepreneurs (who focus on providing "little joys"), as well as national entrepreneurs (whose goal is to go public in Taiwan). Whereas, the target of the international team is clear—to help Taiwanese startups venture into the global market. Therefore, international resources should also be proactively deployed for the management of the entire ecosystem. Mr. Chen suggested that the "Silicon Valley model" could be utilized to source international funding on a project basis. In addition, the concept of "marketing" needs to be reinforced in Taiwan to make industry more sensitive to developments of the global market.Mr. Chen pointed out that internationally, several important paradigm shifts have since occurred in the information and communications technology (ICT) industry and industry in general after 2000. The first of which was a paradigm shift in networking technology driven by networking hardware companies including 3COM and Cisco in 2000. This particular paradigm shift also underpins the development of global networking.As the networking structure becomes increasingly complete, a paradigm shift in business models, driven by Google, Facebook, YouTube, and Amazon, took place subsequently. In this stage, it enabled everyone around the world to completely connect their work and life to the Internet and provided impetus for a new type of lifestyle. Therefore, the development underscores the fact that a product must be able to bring interactions and experiences to its users.The next big thing will be the paradigm shift in lifestyle, driven by the metaverse, etc. This phase has only just begun and opportunities are plenty. However, an entrepreneurial team needs to be able to understand the market demand in addition to possessing the required technological competencies. In particular, sensibility-driven value will immensely exceed rationality-driven value.Mr. Chen pointed out that while developing the new economy, "Technology is global, but service is local." Although Taiwanese startups are technologically competent, technologies are only tools after all. Producing the same product by using the same technology in a different market such as the U.S., will yield results that are different from the Taiwan market. Therefore, while developing an international market, a team needs to acquire insights into the local market's needs and provide products that cater to such needs.Since rapidly changing and unstable global developments have led the capital market to believe in an impending recession, Mr. Chen believes that there may be a tightening in the capital supply, making it even more imperative for startups to control and manage their cash flows. In particular, it would be best for startups that have just acquired funding to put their plans on hold. He also recommends startups to reposition their products since the current economy has made the end-user customers less willing to invest. Startups could use this time to adjust their product structure and focus on how their products could reduce customers' input costs and maximize their profits. For instance, subscription to SaaS services, which has gained popularity recently, is an opportunity that is hard to pass up.At this day and age, no one is positioning themselves as an AI company anymore! Mr. Chen is very candid on this topic. Nowadays, every single entrepreneur has AI. The key is not simply having it, but what you are doing with it. As he mentioned at the beginning of this article, the greatest core value to any entrepreneurial effort lies in "what you are doing," i.e., every entrepreneur should think about what they are doing, and what they wish to achieve. By contemplating these two questions, they may be able to find answers that are completely unexpected.Readers can download " 2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html

Geopolitical influences and rising labor costs in China are bringing drastic changes to the global supply chain, prompting high-tech companies to relocate their production bases to Southeast Asia. For its convenient geographic location, competitive labor market and policy support, Vietnam has attracted Korean, Japanese and Taiwanese firms to establish factories in the country. As opposed to the other countries, Taiwan invests particularly heavily in ASEAN member states. According to the Investment Commission, Ministry of Economic Affairs, in 2021, more than 37% of Taiwan's overseas investments went to ASEAN member states, which overtook China to represent the largest portion of Taiwan's overseas investments with a focus on the electronics industry. In response to the trend, Andrew Chen, in charge of Dimerco Express' Vietnam operation, advises that companies should get a full grasp of the pros and cons while leveraging partners that have been cultivating the local market for years so as to take advantage of what Vietnam has to offer.With a relatively small domestic market, Taiwan has been heavily dependent on foreign trade. This is especially true in the case of the Taiwan electronics industry. Taiwan has risen to become a key player in the global economy after decades of building up its technological strength. China's reforms and opening-up in the 1990s made China an investment target to the Taiwan electronics industry. A triangular trade model has therefore been created, in which orders are taken in Taiwan, goods are made in China and they are then exported to the U.S.The start of the U.S.-China trade war in 2018 and the establishment of the ASEAN Economic Community (AEC) in 2015, which opened up a pathway to an enormous market and labor supply, have prompted global manufacturers including electronics makers to relocate production bases out of China to Southeast Asia. Chen notes among Southeast Asian countries, Vietnam appears to be extremely attractive as a manufacturing hub.Vietnam has the third largest population among ASEAN countries. The enormous workforce coupled with the reform policies launched in 1980 drove Vietnam's transition from an agricultural to an industrial economy. Although farm produce still represents a major portion of Vietnam's exports, Japanese and Korean electronics manufacturers began to invest in the country in 2000, pushing its industrial transformation forward. Taiwanese electronics manufacturers are also picking up the pace of their expansion into Vietnam. To name a few, Wistron, Pegatron, Compal and Inventec have all been stepping up their investments in Vietnam.Based on Chen's insight, Vietnam appeals to global leading manufacturers for three reasons. The first is its large labor market. Vietnam's labor force, aged 15 to 60, represents almost half of its population, which is close to 100 million. Vietnamese people are diligent workers and quick learners so they are suitable for complex electronics manufacturing jobs. Electronics factory workers in Vietnam earn on average US$200 to US$250 a month. The labor costs are cheaper in Vietnam compared to China, where employers have to contribute to five kinds of insurance and a housing fund.The second is its convenient geographic location. Vietnam is situated at the heart of Southeast Asia and bordered by China. Electronics parts that are shipped by road transport from Southern China through the Friendship Pass, a border control between China and Vietnam, can arrive in the electronics cluster in northern Vietnam for assembly within a day. This allows manufacturers with production bases in Vietnam to control logistics costs while taking advantage of China's complete supply chain ecosystem.The third is its policy support. Vietnam has significantly eased the restrictions on foreign investments to increase its appeal to foreign businesses. Moreover, it has entered into free trade agreements (FTA) with 15 countries, allowing goods exported from Vietnam to enjoy tariff reductions. It also offers incentives to high-tech firms and knowledge industry firms to drive the country's industrial transformation.Chen states that manufacturers worldwide have been pressured by rapid supply chain changes spurred by geopolitical tensions and COVID-19. Despite Vietnam's advantages, electronics manufacturers with production bases in the country have to stay on top of Vietnam's industrial and economic environment and strategize accordingly. Logistics that is critical to production and delivery should be a focus of their attention. In today's supply chains, orders demanding rush delivery or short lead times have become the norm. Things are expected to stay this way for at least five years. With Vietnam's industrial ecosystem yet to mature, electronics manufacturers must still import their parts because local parts production cannot keep up with demand. Under such circumstances, the global competitiveness of these companies hinges on the completeness of their logistics service system.Taking Dimerco for example, Chen notes that Dimerco has been in operation for longer than five decades with service centers located in major cities throughout the world and 128 corporate-owned offices in Asia Pacific. Dimerco's Vietnam branch was established in 2008 and has teams stationed across Northern and Southern Vietnam to deliver tailored logistics services suited to various industries at different geographic locations.Dimerco provides complete freight services via air, land and sea transportation. With a far-reaching worldwide logistics network that connects Asia with the world, Dimerco partners with more than 10 global ocean freight forwarders and five cargo airlines, including Eva Air and China Airlines, and cross-border land transportation firms in Asia. Aside from physical freight shipping, Dimerco also leverages digital transformation to create a more refined user experience. According to Chen, Dimerco's self-developed technology platform connects different systems through electronic data interchange (EDI) so that customers can log into the MyDimerco Portal – a 24/7 online resource for freight tracking and performance monitoring. Furthermore, Dimerco has obtained ISO 27001 Information Security Management System certification so customers can be assured their data is safe.Chen points out that Vietnam now plays a vital role in electronics manufacturers' planning as they compete in the global market. Apart from strengthening their manufacturing capabilities, manufacturers also need a robust logistics partner to ensure stable and on-time delivery of raw materials and finished products. Serving a large number of Taiwan-based electronics manufacturers in Vietnam, Dimerco offers high-reliability and high-quality logistics services at reasonable costs, with strong system integration, via a complete shipping network and with an enthusiastic spirit. Making logistics a pillar to customers' competitive edge, Dimerco helps customers conquer market challenges and tap upcoming opportunities.Dimerco and the Semiconductor IndustryKey Logistics Expertise and Capabilities Required to Serve the Semiconductor Supply Chain

Astronomy is one of the oldest fields of science in the world. Related studies accumulated by scientists over centuries have spurred the development of knowledge in human society. Today, astronomy has become a necessary area of research among knowledge-developed countries. The Academia Sinica Institute of Astronomy and Astrophysics (ASIAA) has achieved remarkable academic feats in only a few years since its establishment in 2010. With the intention of boosting research capabilities, the AMD EPYC processors has been incorporated as the core of ASIAA's next-generation computing system, which went online not too long ago in 2022. ASIAA Director Dr. Ue-Li Pen explained that not only can the AMD EPYC processors meet ASIAA's huge computing needs, but its server can also take up less rack space due to its high computing density. On top of that, it only requires one-third of the electricity consumed by previous equipment to achieve the same level of computing power. "The new system powered by AMD EPYC processors will be of tremendous benefit to academic research at ASIAA," Dr. Pen added.Leveraging High Computing Power to Optimize Astronomical Research CapabilitiesDr. Pen then gave an introduction on research areas ASIAA is involved in. He highlighted that as astronomy encompasses a wide range of fields, ASIAA has conducted research on most fields in both observational and theoretical astrophysics, including planets, stars, black holes, and galaxies. Meanwhile, ASIAA has also invested heavily in the development of telescopes and the related astronomical instrumentation to bolster its research capabilities. In recent years, ASIAA has actively engaged in international research in collaboration with a host of developed countries. Dr. Pen cited the high-resolution black hole image released in May this year as an example of such a research initiative. The image was taken by the Event Horizon Telescope (EHT), an international collaboration project aimed at capturing images of black holes. ASIAA not only participated in this project through the Greenland Telescope, but also played an integral role in it. Aside from the Greenland Telescope, ASIAA is also involved in the Atacama Large Millimeter/Submillimeter Array (ALMA), the largest ground-based observatory project in human history. Furthermore, Dr. Pen also revealed that ASIAA has initiated efforts to conduct a new project aimed at studying fast radio bursts (FRB) and is currently building the world's first telescope dedicated to studying this mysterious signal in Taiwan. "We hope to become a leading astronomical research institution and devote ourselves to nurturing the next generation of Taiwanese scientists," Dr. Pen said.However, it is extremely difficult to achieve the desired quality of research results as scheduled, especially for astronomical research. As pointed out by Dr. Pen, a massive amount of data is required for various simulations in astronomical research. Prior to the commercialization of computers, research institutions had to deploy a large group of professionals for the purpose of calculating all kinds of data. This situation was mitigated after the advent of computing technology, but their effectiveness was still limited. Dr. Pen recalled the days as a young researcher at a university when the mainframe he used for research was only capable of calculating one-dimensional data. Later, computing power started increasing rapidly, and construction of the ASIAA mainframe had already begun in 2001 when ASIAA was still under Academia Sinica's Preparatory Office. The facility has since been upgraded numerous times according to changes in research contents.According to ASIAA Associate Research Fellow Dr. Min-Kai Lin, astronomical research is now in the era of three-dimensional data computation, which requires high system performance. For instance, Dr. Lin's research team studies how planets form using fluid dynamics simulations, which require large amounts of data to be analyzed using large-scale parallel computing techniques. ASIAA's mainframe system is replaced approximately once every five years, with the last generation going online in 2015. The system's 1,664 cores combined to form103 nodes, with each node having only 16 or 24 cores. As for storage, the system incorporated an open-source clustered storage system with a parallel file system. The nodes were connected based on the InfiniBand Fourteen Data Rate (FDR) transmission standard. That system had a total of 1,664 cores and consists of 103 nodes, each with only 16 or 24 cores. The storage part uses an open-source cluster storage architecture to build a parallel file system, and uses the InfiniBand FDR transmission standard to connect to each node.The system was still capable of meeting research needs in the early days after its inception. However, with ASIAA's continuous expansion, accompanied by the increased pace of internationalization, the number of cores and computing input/output of existing equipment at ASIAA gradually could not keep up with the research needs of the institution. "In the past few years, our planned calculations required hundreds or even thousands of cores, but the existing system was limited by its performance, so it could only execute a few cores so it could only run a few jobs at a time, leading to extended system times," Dr. Lin said. In order to solve this problem, ASIAA took on an initiative to design a new mainframe that incorporates both its current needs and future research plans. This led to the birth of a new-generation mainframe known as "Kawas."."Kawas means 'soul' in the Amis language, and represents the core of ASIAA's high-performance computing system," Dr. Lin explained. He pointed out that compared with previous computing systems, the performance of Kawas, which went online in 2022, has been upgraded substantially as it is now equipped with 2,048 CPU cores, 8 TB of memory, and 1.2 PB of parallel file system capacity. "The most unique feature of this system is that there are 128 cores in a single node and the nodes are connected by InfiniBand HDR 200 Gbps network switches, greatly improving the parallel computing performance of the system," Dr. Lin added. With the above hardware capabilities, the total computing power of Kawas reaches 61 TFLOPS. ASIAA Builds the Most Powerful Computing System Using Four Major Features of AMD EPYC processorsKawas's powerful performance originates from the AMD EPYC processors. Dr. Lin acknowledged that as a scientific institution, ASIAA is not beholden to brand names when evaluating products in the market. Instead, it prioritizes performance as a whole. "We carry out tests on different systems simultaneously based on software programs used by researchers and scientific topics in general. After all, the end goal is to enhance research output," Dr. Lin revealed. Upon careful assessment, the AMD EPYC processors came out on top due chiefly to four reasons: powerful performance, high density (due to computing performance that significantly reduces the total space taken up by its server), low power consumption, and compatibility.Dr. Lin further explained that the powerful performance of the AMD EPYC 64 core server enables various research teams at ASIAA to efficiently perform parallel computing in large quantities. "The 2,048-core system is the largest computing architecture we have ever built in ASIAA," he emphasized. The most significant benefit of such computing capabilities is reflected in the substantially improved performance of parallel computing. Previous generation computing systems, in which each node only had 16 or 24 cores, required a complex message passing interface (MPI) to achieve computations with hundreds of cores across different computing nodes. On the other hand, each node in Kawas has 128 cores from AMD EPYC processors, which enable a high level of parallel performance in a single node using Open Multi-Processing (OpenMP). Since OpenMP is relatively easy to develop and encompasses a wide range of applications, Kawas can markedly reduce the development time, and thus allows ASIAA to rapidly expand into new research directions. This advantage effectively bolsters ASIAA's essential efforts to develop its own original programs and libraries. In addition, its high performance also maximizes flexibility when it comes to how server rack space is used. Dr. Lin disclosed that Kawas only has 16 nodes. If products with more nodes are used, a large number of servers have to be configured to achieve Kawas's computing power of 61 TFLOPS. Whereas the AMD EPYC processors can substantially reduce the number of servers used and the space taken up due to their powerful performance. At the same time, for the same computing power, AMD EPYC processors demonstrate superior excellent performance in power consumption, which in turn enables higher computing density for cost and power-optimized platforms.As far as compatibility is concerned, Dr. Lin noted that the importance of system compatibility is due to extremely close cooperation between astronomical research institutions around the world. AMD compilers with an open-source architecture are readily compatible with systems in other countries, which in turn helps facilitate ASIAA's presence abroad. "Therefore, Kawas is the best system ever built by ASIAA in terms of computing performance, space utilization, power consumption, and compatibility," he stressed.This system, in which the cores of AMD EPYC processors play a key role, has been online for some time now. Aside from the products, the services provided by AMD and its partners are also the primary reason why the benefits of introducing the system have gained prominence. Dr. Lin revealed that during the early stage of introduction, ASIAA deployed the operating system using the QCT HPC Starter Kit, a tool available on QCT POD provided by AMD's partner, Quanta Cloud Technology. "This simple and fast one-time system deployment mode can significantly reduce the installation time of the overall HPC system and eliminate the major problem issue of overly-complex system configurations in the past., which used to be a major problem," he said while explaining the elaborating on the relatively comprehensive features of the QCT HPC Starter Kit. As for system management, the QCT HPC Starter Kit offers a variety of tools based on Kawas's needs. It not only assists in setting up HPC-related environments, but also enables administrators to keep track of system status and obtain information on resource utilization readily."With concerted efforts by all our colleagues, we have delivered remarkable results over the past few years. In addition to conducting research on an ongoing basis, we will also devote ourselves to nurturing the next generation of Taiwanese scientists," Dr. Pen said. Finally, he concluded that the powerful performance of AMD EPYC processors and the corresponding technical services will help ASIAA achieve this vision, and become a leading astronomical research institution in the world.ASIAA Associate Research Fellow Dr. Min-Kai Lin (left) and Director Dr. Ue-Li Pen (right)Photo: AMD

Optimistic about the global agri-food tech market of over US$500 billion per year, the estimated value of the investment portfolio of Foodland Ventures in the relevant industries has also surpassed US$250 million. Mr. Victor Chen, Founder & CEO of Foodland Ventures, stated that given the density of resources, Taiwan is equipped with a complete "farm-to-table" agri-food supply chain. From its local funding, talent pool, and technological strengths, Taiwan possesses the competitiveness required to expand into the global market.A comprehensive overview on opportunities and challenges facing entrepreneurs in the food and beverage industry in Taiwan, shows that similar to the Gold Rush in the 19th-century America, those who sold crowbars and pickaxes had in fact more potential and opportunity to grow than those who participated in the gold rush. In other words, in an industry with relatively intense competition, those with access to critical technologies and tools have the greatest chance to profit. In particular, there is a large gap in terms of the communications between the food and beverage industry, and the high-tech industry. Furthermore, prospects are looking up for Taiwanese startups that can act as "tool providers" in the food and beverage industry, thereby assisting the industry to grow through innovative technologies.Due to the COVID-19 pandemic, remote working and labor shortage have prompted a rapid transformation for in-store dining. The demand for software-as-a-service (SaaS) and automated services is rising, and this will also be the optimal entry point for the Taiwanese high-tech startups into the food and beverage industry. In addition, smart agriculture, fishing and animal husbandry in the upstream agri-food industry will also experience much development, given the concerns for food security and climate change.The food and beverage industry in Taiwan boasts a comprehensive industry chain. With its high-quality software and hardware R&D talent pool, there are opportunities for Taiwan to showcase its advantages in the international arena.Compared with the global market, although the Taiwanese market is relatively small, it possesses a comprehensive industry chain from the agri-food sector to the food and beverage industry, as well as a well-rounded information and communications technology (ICT) industry framework and manpower. All of which will make Taiwan a conducive environment for developing an agri-food tech market. Therefore, Foodland Ventures has chosen Taiwan as its first stop toward international development.Since Taiwan already has a comprehensive local food and beverage ecosystem, Foodland Ventures is proactively facilitating partnerships between enterprises and startups, so that Taiwanese entrepreneurs could have an opportunity to test the product-market fit by engaging in conversations with industry. In addition, Foodland Ventures also notes that many major traditional businesses have already proactively invested in innovative technologies to promote corporate transformations.In the development of agri-food tech, each market has its distinctive characteristics and needs. Therefore, Foodland Ventures will assist startups to choose the right international markets based on their individual technological competencies and operational qualities. Foodland Ventures will also guide them in market development. At the same time, the startup teams also need to reinforce their understanding of local markets. On top of building a team that will be stationed locally for the long-haul, they will also need to search for the right local partners, which will enable them to rapidly build a competitive edge in these markets.Mr. Chen said that Taiwanese startups and their products will be just as competitive even on the global stage. Looking forward to the next decade, agri-food startups in Taiwan will be very proactive in areas such as automation, artificial intelligence (AI), digital transformation, and environmental, social, and corporate governance (ESG).Moreover, the international capital market has undergone many changes in 2022, including post-pandemic developments, war and inflation. Mr. Chen pointed out a decline in the number of venture capital (VC) investments after the pandemic. This is mostly attributable to the restoration of rationality in the capital market. Nevertheless, early-stage investments in Taiwan have always been made in a more conservative and rational manner than those by international venture capitalists. Therefore, Taiwanese startups have become more prudent in seeking profitability after immersing in such a culture and addressing these demands over an extended period. Thus, the withdrawal of hot money and the increasingly conservative attitude of international VCs may not be such a bad thing for the Taiwanese startups after all. For startup teams that are already experiencing robust growth, the developments may even be helpful.In the long term, Foodland Ventures is optimistic about the potential of Taiwanese startups that wish to go global. As such, it will continue to form enterprise networks, gather international resources, and work toward aligning the startups with the necessary funding to help them succeed.Readers can download "2022 Taiwan Startup Ecosystem Survey" jointly conducted by PwC Taiwan, TIER and DIGITIMES: https://www.pwc.tw/en/publications/taiwan-startup-ecosystem-survey.html