Secrets from a tech island

Today, Taiwan is one of the foremost technology hubs on the planet, with Taiwanese companies dominating the world’s semiconductor market for the past 50 years, and semiconductor giant TSMC providing the bulk of the chips found in Apple’s iPhones and other smartphones.

In recent years, the island has grown far beyond its semiconductor fame. Homegrown firms Quanta, ASUS, Acer and HTC are major players on the global IT stage, while recent major investments from the likes of Microsoft, Google and IBM to increase research and development, build cloud infrastructure and cultivate a talent pipeline shows they’re betting on a bright future.

A thriving microcosm

For an island with a population of 23 million, Taiwan punches well above its weight. But its island status is in fact part of the reason for its success, believes Dr Jau Huang, who founded multimedia solutions provider CyberLink Corporation in 1996, back in the internet’s early days.

“Taiwan is an entrepreneur’s dream location for establishing and running a tech company,” says Dr Huang, “Why? Being an island means it helps create a hub, like Silicon Valley, with the entire technology ecosystem in a relatively small, confined space.”

“You are surrounded by your supply chain, your customers and even your competitors. With the majority of businesses at most, only an hour’s drive away, you can get to clients quickly to brainstorm and at the end of the day, negotiate a deal.” 

Chen points to the growth in global e-commerce which has skyrocketed the number of fulfilment centres needed. “Although many warehouses have adopted automation, the actual picking process still relies heavily on manual labour,” he says.

Existing robot arms in the market require a massive training database wherein each product is memorised through seeing hundreds of photos. Only after the data is established, the robot can pick the item, he explains. But JustPick’s AI technology means it can complete the picking process without prior learning. Solomon’s innovative JustPick system is already installed in the facilities of DB Schenker, 3M, FedEx and CVS.

Chen agrees that being based in Taiwan was crucial to the growth of the business. He underlines the deep talent pool; “the outstanding talents cultivated in the Taiwanese education system, driving the continuous improvements of technology and product.” Second, he says, Taiwan’s location in the heart of Asia allows easy access to major Asian markets and logistics advantages.

Finally, he adds, the legal system in Taiwan is well-established with a strong sense of intellectual property protection. “Taiwan is strongly supporting various technology development and R&D activities by introducing various tax incentives, financial subsidies and policies,” he says. “This has created a reliable business environment which allows business owners to invest and operate and provide a solid foundation for long-term growth.”

Yang adds that the feedback from doctors has shown it to be extremely helpful, especially when it comes to training new doctors. “It can greatly improve the effectiveness of precision medicine, pre-operative evaluations and surgical evaluations,” he says.

Yang says one thing Taiwanese tech firms have in common is that they don’t sit still; there is a drive for constant innovation. Another thing is their willingness to collaborate. “We’ve worked with subsidiaries and strategic partners to cultivate diverse field application solutions, to encourage the development of various fields including smart healthcare, smart mobility and smart retail, smart recreation and so on,” he says. “This year, Innolux will embrace even more crossover collaborations based on a philosophy of openness to drive transformation.”   

From its reputation as a semiconductor leader, Taiwan has diversified hugely into other IT clusters, points out Cynthia Kiang, director general of the International Trade Administration in Taiwan’s Ministry of Economic Affairs.

“By diversifying their products, they have become indispensable suppliers in their respective sectors, reaffirming Taiwan's central position in the global tech ecosystem,” she says.     

“Taiwan will continue to adapt and evolve to maintain its role as the world’s tech island.” Taiwan’s unique track for development has cultivated a powerhouse that punches well above its weight. Its success as a ground-breaking industrial innovator, and the continual progressions of its entrepreneurs as they look to the future, looks set to seal a golden future for those firms and products bearing the stamp of “Made in Taiwan”.