Taoyuan City Investment Service Center

Introduction

Objectively speaking, the China-US trade war is at its heart a long-term competition involving information, technology, strategy and value. What is worthy of note is that much of the data has led the US to believe that many “non-military warfare actions,” on a practical level, have had a serious impact on information security. The National Security Agency of the United States points out that in recent years Washington has proactively prevented intrusions from foreign telecommunications and network communication equipment manufacturers, from networks, base stations to mobile devices.

What distinguishes 4G from 5G is that the 5G era has changed from a war on mobile network speed to a long-term comprehensive war on software, hardware and services. Apart from the high speed of surfing the internet, the new look of this communication war includes the base stations of telecommunication companies, the infrastructure of governmental communication and various services derived from the accelerated network speed. From the perspective of consumers, the development of mobile device products shows that all brands are enthusiastically launching peripheral products in support of 5G. This also hastens the speed of developing associated demands and applications. It further influences the orientation of many industries and economic development. It is a major competition in technological development that cannot be ignored among nations. 

To Have Control of Communication Technology Means Also to Have Control of Regulations Development

According to Bloomberg News, the 6G competition has begun without much notice. 6G refers to the sixth generation of wireless communication technology. It has two major key technologies. The first one evolves on the basis of the original 5G, like the autonomous system of artificial intelligence or edge computing, and expands to ubiquitous computing ^{(*Note 1)}. The second one is a new technology that received relatively less attention in the past, like Optical Wireless Communications (OWC), Tactile Internet of Things and underwater wireless communication. It does not just expand communication among people. More importantly, it enables communication between people and “things.”

6G is more than just a technological competition. It is also a matter of national security. All communication equipment in the world must follow international regulations. Those who master the technology more end up playing a bigger role in setting up the rules and bringing advantages to their domestic manufacturers. Although the commercial use of 6G application will not take place until 2030, the United States, China, Europe, and Japan are all continuously advancing their technology so that they may gain the right to speak in the next 20 years. In March, it is reported that Japan intends to propose the first version of the 6G international standard program ^{(*Note 2)}. In Europe, Ericsson and Nokia, two leading telecommunication companies, keep promoting specific 6G integration plans ^{(*Note 3)}.

Development Blueprint and Strategic Importance of Taiwan’s 5G 

Taiwan has been a major center in charge of manufacturing global information and communication (ICT) equipment. Naturally, it is closely related to 5G, 6G and their applications, not to mention that Taiwanese manufacturers have been working on the Internet of Things (IoT). To integrate Taiwan’s existing advantages with new trends is the goal of the Innovative Application Project of the Asia-Silicon Valley, based in Taoyuan. .

Hardware is of course still Taiwan’s main advantage. This is based on two premises. First, the world is still in the early stage of constructing the infrastructure of 5G, except for a few indicative cities. That is to say, the demand for hardware has great potential. When it comes to global communication technologies, Taiwan’s strengths lie in the semiconductors, key components and hardware assembly industries. Second, the trend of communication frequency bands have move towards higher frequency and higher speed in transmission since the 5G era. However, this suggests weaker penetration. That is to say, large base stations that used to cover a wider range in the past will gradually turn into the “few but wide” small base stations with multiple antennas in the future ^{(*Note 4)}. Demand for hardware is therefore expected to go up. What to be expected next is the localization of 5G equipment. On the application level, Taiwan also tries to participate in the application revolution of business models brought by 5G. By accelerating wireless transmission, smart medical care can introduce video consultations to rural areas and provide more complete and accurate medical information. In addition, 5G can achieve low latency and fast response capabilities when it is combined with edge computing. These are also indispensable conditions for smart factories and smart transportation.

Progress of Taoyuan’s Industrial Investment in 5G+AIoT 

Taoyuan is not merely the core of Taiwan’s ICT industry clusters. It also leads the 5G development in Taiwan. Several of Taiwan’s leading technology companies, e.g., Quanta Computer, Inventec and Delta Electronics, all chose Taoyuan as a base location for their 5G R&D teams. The world’s fifth O-RAN alliance-qualified Open Testing and Integration Center (OTIC) is also located in Qingpu, Taoyuan. This laboratory helps manufacturers of communication networks test equipment. As of mid-2022, it has already provided services to more than 16 businesses.

In the meanwhile, Taoyuan introduces technologies with foreign investments. DuPont Taiwan, Rohde & Schwarz Taiwan Ltd., and the domestic electronic materials industry all invested in Low Temperature Co-fired Ceramic (LTCC). This is one of the main packaging technologies for 5G modules. It strengthens the self-sufficient and autonomous capability of the midstream and downstream industrial chain in local 5G communication. 

In addition to manufacturing hardware, Taoyuan has never been absent from the research and development of cutting-edge technologies. It has used the Asia-Silicon Valley Project as its main platform and participated in several proof-of-concept projects (POC). Aiming at 5G and Metaverse business opportunities, Quanta Computer Inc. has established Quanta Cloud Technology, a subsidiary that has eventually built OpenLab with Intel in Taoyuan. ^{(*Note 5)}

As mentioned above, the infrastructure of 5G communication has huge business opportunities. It is also full of possibilities when it is explored with other technologies, creating many unheard-of applications with potential. Taoyuan has 2 projects out of the 9 cases of 5G Smart City Taiwan field test pilot projects promoted by the Asia-Silicon Valley during 2021-2022. This includes Chunghwa Telecom’s 5G precision networked medical and emergency rescue system and WiAdvance Technology Corporation’s smart show- The VR 360-degree panoramic concert. All these reveal what the future of medical care and entertainment may look like. ^{(*Note 6)}

Spanning from 5G to 6G, the Future Development of Taoyuan’s Industrial Clusters 

To provide a look at the present from the future, 5G will gradually reach maturity and even transit into the era of 6G in the next 10 years. The human world may face a new type of “experience.” Although virtual reality and Metaverse have not reached the final stage of development, the trend is undeniably getting more and more self-evident. The competition layout of international enterprises is also getting more concrete. 

As the gate for Taiwan to face the world, Taoyuan has advantages in industries, transportations and talents. Undoubtedly, it is the best place for Taiwan to develop cutting-edge technologies like 5G. Therefore, Taoyuan maintains a proactive and cooperative attitude. With the OEM experience and advantages in the ICT industry, it attracts foreign investments. It is also important to participate in international discussions so that Taoyuan can make progress with competitions rather than get stuck by competitions in the communication war lasted until 2030.