Taiwan Today

The blueprint for advancing Taiwan’s digital ecosystem leverages the nation’s ICT strengths and emphasizes software solutions.

Taiwan is in the midst of an economic transformation, one characterized by innovation and inclusivity, and designed to keep the nation at the forefront of industrial, social and technological trends. At the heart of this sea change is the Forward-looking Infrastructure Development Program (FIDP), approved by the Executive Yuan in April and tailored to meet the country’s development needs over the next three decades. Among the key components of the initiative is digital infrastructure.

Earlier the same month, the first Group of 20 (G20) Digital Ministers’ Meeting took place in Germany. It concluded with the adoption of a roadmap leading toward ambitious goals in the coming years. “All people around the world should have access to the internet by 2025, and this is the target set by the G20 digital ministers,” said Kenny Huang (黃勝雄‬), an executive council member of the Asia Pacific Network Information Centre (APNIC). He noted that high-speed internet should allow everyone to participate in the opportunities it provides. “Incidentally, these policy guidelines are included in Taiwan’s digital infrastructure program.”

The initiative is based on the government’s belief that internet access is a basic human right and everyone, regardless of geographic location or socioeconomic background, should be allowed to utilize affordable, convenient and secure digital services. The plan is designed to help guarantee this right, while at the same time boosting the digital economy by driving growth, innovation and prosperity.

Changing Focus

The digital infrastructure portion of the FIDP covers five main areas—content creation, cybersecurity, education, inclusivity, and smart urban and rural services. According to Kuo Yau-hwang (郭耀煌), executive secretary of the Executive Yuan’s Office of Science and Technology, which oversees the digital initiative, the objective is to expand beyond the traditional focus on hardware and place greater emphasis on software solutions.

“Over the years, Taiwan has become one of the world’s leading producers of information and communication technology (ICT) products. However, it still lags behind in critical areas such as applications, content and services,” Kuo said. “That’s why we want to strengthen our weak points and develop a national digital ecosystem.”

With a planned special budget of around NT$46 billion (US$1.53 billion), the project aims to increase cybersecurity at government agencies by, among other measures, replacing outdated, high-risk equipment. In addition, improvements will be made to internet penetration rates and broadband speeds will be enhanced from 100 megabits per second to one gigabit per second, helping bridge the urban-rural digital divide.

Broadband service will be extended to 405 rural public health offices and mobile clinics across Taiwan, improving health care quality and facilitating remote patient monitoring and treatment. Funds will also be used to purchase computer hardware, provide training classes and support broadband deployment in rural and other marginalized communities.

Meanwhile, digital services will be enhanced via e-government mechanisms to boost the efficiency and transparency of public programs, and artificial intelligence (AI), big data and Internet of Things technologies will be utilized to establish interconnected information systems for air quality detection, disaster prevention and response, and earthquake monitoring.

The goal of the content portion of the plan is to turn the digital cultural and creative sector into a high-value industry. Related measures include establishing a national cultural memory bank, widening public access to digital cultural heritage held by Taiwan’s museums, as well as promoting cross-platform content production and ultra-high definition content such as feature films and TV shows.

As for education and talent cultivation, the government will help schools at the primary, secondary and tertiary levels create engaging, technology-rich learning environments. It will also establish AI and robotics centers to train the next generation of tech innovators, as well as organize courses and foster cooperation between educational institutions, private enterprises, science park resident companies and research organizations.

“The digital revolution in AI, big data, cloud computing, Internet of Things and mobile communications is changing nearly every aspect of our lives. Digital capabilities will significantly determine the competitiveness of countries, enterprises and individuals,” Kuo noted. “We need to modernize and consolidate digital infrastructure to deliver a better quality of life for all citizens and keep up with international trends.”

Paradigm Shift

Tsai Zse-hong (蔡志宏), a professor at the Graduate Institute of Communication Engineering at National Taiwan University in Taipei City, agreed that the digital revolution is leading to paradigm shifts in business and society on a global scale. Digital innovation, he said, is the key factor for success.

According to the Global Top 100 ranking of companies for 2016 released by PricewaterhouseCoopers, a multinational professional services network headquartered in the U.K., five out of the top 10 global firms by market capitalization are tech titans Apple Inc., Google parent Alphabet Inc., Microsoft Corp., Facebook Inc. and Amazon.com. “The rise of digital tech companies and the decline of traditional manufacturers as revealed in Pricewaterhouse’s Global Top 100 ranking report reflect the shift in economic leadership among industries,” Tsai said.

Taiwan holds the highest global market share for several ICT hardware products, but it is not yet an international trendsetter, he added. “To rise to that level, it must properly utilize its technological advances in the economic and social spheres.”

According to Tsai, the government is wise to focus its digital infrastructure plan on software rather than hardware, in addition to applications in business operations and public services such as education, health care and information management for disaster mitigation, particularly in remote areas. “The promotion of digital inclusion and literacy can help address social challenges and increase civic engagement and empowerment,” he said.

Tsai suggested that the government collaborate with foreign experts in the country’s digital infrastructure development, especially in the realms of AI, big data and smart city solutions, to capitalize on their know-how and ensure that locally developed digital facilities and services reach or even exceed international standards. He also advised periodic reviews of projects so that necessary adjustments can be made during implementation.

Under the digital infrastructure scheme, the government will work with domestic enterprises in a number of projects, with the private sector expected to invest NT$200 billion (US$6.6 billion) in broadband infrastructure and NT$38.1 billion (US$1.3 billion) in content and services R&D. “The public-private partnership can accelerate infrastructure development, particularly in rural areas and outlying islands, allowing local residents to reap the benefits of digitalization,” according to Huang of the APNIC. “Such an approach can also better ensure sustainable operations and maintenance of facilities like broadband networks.”

He believes the government’s digital infrastructure plan will yield positive results. “It’s a practical, well-rounded plan that takes into account the needs of all citizens, regardless of whether they live in urban or rural areas,” Huang said. “By leveraging its strengths in ICT hardware and with increased government spending on software infrastructure, Taiwan is poised to transform into a truly digital economy.”

Write to Kelly Her at kher@mofa.gov.tw