February 24, 2024

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Taiwan’s Data Industry Landscape

Network servers in a data center. Swallow depth of Field

Given Taiwan’s strong data protection laws and data storage infrastructure, the nation is poised to become Asia’s data centre hub. U.S. tech giants already have substantial operations in Taiwan and continue to make large new investments. However, domestic demand is the main driver of growth in Taiwan’s data centre industry.

A research firm said that enterprise infrastructure spending by firms in Taiwan in 2020 rose by 19.7% to NT$23 billion (US$822 million), fueled by a busy manufacturing sector that supplies a world hungry for chipsets and servers.

Cloud giants have plans to expand in Taiwan. Taiwan is embracing a cloud-first mentality as firms move data to the cloud to find efficiencies while modernising their own infrastructure as part of their digital transformation journey.

A U.S. tech giant has announced it would build a third Taiwan data centre for NT$ 20 billion in Yunlin County. The company mentioned geographic advantages as a reason they chose to build the data centre in Taiwan. Another big tech company said that it would build a cloud region in Taiwan. The data centre is expected to launch in late 2021 or early 2022.

The tech company said that its new investment in Taiwan reflects its faith in its strong heritage of hardware and software integration. With Taiwan’s expertise in hardware manufacturing and the new datacentre region, they look forward to greater transformation, advancing what is possible with 5G, Artificial Intelligence (AI) and Internet of Things (IoT) capabilities spanning the intelligent cloud and intelligent edge.

According to an article, Innovation has been a source of comparative advantage for Taiwan historically. It has also been an important basis for U.S. firms, investors and the government to support Taiwan’s development while expanding mutually beneficial linkages. Yet, both Taiwan’s innovation advantage and the prospect of jointly developed, technologically disruptive collaborations face challenges.

Taiwan’s innovation ecosystem has struggled to foster subsequent generations of startups to replace these losses in electronics manufacturing. Despite a freewheeling startup culture, internationalisation has been a persistent challenge for Taiwan-based firms. Technological change and political challenges from Beijing present additional risks to Taiwan’s innovation future.

The national innovation ecosystem has struggled to foster subsequent generations of startups to replace these losses in electronics manufacturing. Despite a freewheeling startup culture, internationalisation has been a persistent challenge for Taiwan-based firms. Technological change and political challenges from Beijing present additional risks to Taiwan’s innovation future.

Taiwan’s government can also do more through public-private partnerships to encourage commercialisation. Many university professors, especially in technical subjects, owe their research sponsorship to the government—for example, through subsidy programs of the Ministry of Science and Technology (MOST). But few have been able to respond to government entreaties to commercialise the fruits of this research. Fostering links between basic research funding and commercial accelerators and incubators will be essential.

As an example of Taiwan’s government support, The Export Processing Zone Administration (EPZA) of MOEA cooperates with the Institute for Information Industry (III) to build Taiwan’s first “Digital Transformation Innovation Hub (DTIH)”, which was officially completed in Kaohsiung Software Park (KSP), as reported by OpenGov Asia.

To meet the increasing demands for digital technology year by year, the EPZA actively expands KSP second phase to attract more enterprises to invest and station in the park to expand the scale of the southern digital technology industries settlement. In response to the trend of digital technology, the most critical fields for digital transformation in the future are Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Cloud, Data Analytics, Edge Computing and 5G, by using emerging technologies to drive the transformation of the manufacturing industry to increase the added-value of the industries.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

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