Increasing investments by Qualcomm in Taiwan coupled with collaborative efforts between the US-based chipmaker and Taiwan's networking device makers in the 5G area will create a production value of up to NT$600 billion (US$19.56 billion) in the local market in the next five years, according to Taiwan's vice economic minister Kung Ming-hsin.
And by adding Qualcomm's subcontracting of wafer foundry production to Taiwan Semiconductor Manufacturing Company (TSMC), Taiwan's exports of electronics component products will increase NT$200 billion during the five-year period, Kung told lawmakers a special committee meeting held recently.
The projected benefits are to be realized after Qualcomm reached a mutually agreed settlement with Taiwan's Fair Trade Commission (FTC) in August, resolving the FTC's decision to fine the US chipmaker of up to NT$23.4 billion for alleged violations of Taiwan's Fair Trade Act.
As part of the agreement, Qualcomm has committed to making new investments of up to US$700 million as well as to driving certain commercial initiatives in Taiwan over the next five years for the benefit of the mobile and semiconductor ecosystem, SMEs and 5G collaborations.
The settlement with Qualcomm was reached on consideration of maintaining normal operation of fair competition mechanism and fostering the industrial and economic benefits, FTC chairperson Huang Mei-ying said at the same meeting.
The development of the 5G technology is a mandate that cannot be prolonged, and continuing the litigation process with Qualcomm may cause irreparable harm to Taiwan's industry and delay industrial developments, Huang said.
As the committee meeting was held to review the ongoing implementation process of Qualcomm's commitment, Huang said that the chipmaker has announced plans to set up an R&D unit in Taiwan which is comparable to that one established at Qualcomm's headquarters in San Diego, California.
In fact, Qualcomm announced recently that it will set up three technology and testing centers in Taiwan as it deepens its collaborative efforts with local businesses in Taiwan to accelerate the commercial realization of 5G and other advanced technologies.
The three centers consist of a 5G module research and design center, a millimeter-wave (mmWave) testing center and a biometric sensing technology center.
To sum up the meeting, Kung said that through closer cooperation with Qualcomm, Taiwan's makers will be able to shorten time-to-market for related 5G application products by six months, while also tapping into the vast market in the fields including AI, IoT, automobile, healthcare and smart factory.
Article translated by Steve Shen
