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Dr. Chih-Kung Lee, President

Institute for Information Industry

2012. 05.14.

The latest developments in the ICT sector:

Innovation & Technology Convergence

Symposium on the 15th Anniversary of the

Information Technology Agreement

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-3.0

-1.0

1.0

3.0

5.0

7.0

9.0

11.0

13.0

15.0

1952 1960 1970 1980 1990

Manufacturing-oriented Investment-oriented Innovation-oriented

Labor-intensive stage

Capital-intensive stage

Tchnology-intensive stage

Knowledge-intensive stage

2000

Leading the

development

of high-tech

industry

Upgrading of

industrial

technology

and

international-

ization

Betting

national

resources

into the

livelihood

Industry

Betting

national

resources to

improve

agricultural

techniques

Promote large-

scale national

construction/Es

tablishment of

heavy

chemical

industry

2010(8.24f)

Regional

competitive

industry

GDP

Growth

Transformation of Taiwane Industry

2010

Financial

Tsunami

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Evolution of Taiwan’s Economic Development

The Transition of Taiwan’s Main Export Items

1970 1980 1990 2000

Textile/ Toys/ Umbrella

Metal products/ Bicycle

Electronic parts/ IT products

Semiconductor and TFT LCD

ICT and

related components

The Transition of Taiwan’s Growth Driving Force

Innovation - An enabling

growth engine

1996-2000 2009-2013

MFP*

(29%)

Capital

(60%) Labor

(11%)

The change of contribution to

economic growth

MFP*

(42.2%) Capital

(40.2%) Labor

(17.6%)

* MFP: Multiple Factor Productivity

Source：DGBAS of Taiwan, CEPD of Taiwan, compiled by MIC, Mar. 2012.

2010

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60

80

100

120

140

160

180

200

220

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

ICT services

6.0%

Services 4.8%

Total ICT 4.7%

Total business

sector 4.2%

Manufacturing

2.5%

ICT

Manufacturing.

1.0%

ICT industry maturing, value-add varies by sector

Growth of ICT sector and total value added in the OECD area, 1995-2008

Index 1995 = 100, compound annual growth rate in current exchange rates (%)

Source：OECD Information Technology Outlook 2010 Highlights, Feb. 2011.

OECD countries with the largest shares of ICT

manufacturing value added in total value added:

Korea, Finland, Ireland, Japan, Hungary, Sweden,

Slovak Republic, Germany, Czech Republic,

United States and Mexico.

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Source：OECD Information Technology Outlook 2010 Highlights, Feb. 2011.

OECD ICT trade more than doubled to USD 2.1 trillion and accounted for close

to 7% of world merchandise trade but imports outpaced exports, and the OECD

share of total ICT trade dropped from 71% in 1996 to 53% in 2008.

The restructuring of global ICT trade

Non-OECD countries

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BROADBAND Entertainment,

E-Business, Services

MEDIA Pre-Recorded Content

Personal Media

BROADCAST Services,

Entertainment

Any content, any place,

any device, any time

ITA could contribute the realization

of the Digital Home Vision

All computing devices communicate,

All communication devices compute,

All devices and content are going digital...

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Consumer Behavior

Media & Entertain- ment

Service Providers

Consumer Electronics

DIGITAL CONTENT

ECOSYSTEM

ITA also to establish the Digital Content Ecosystem

Increasingly complex industry

dynamics in media distribution

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ICT’s Stimulating Smart Living Applications

Winner of

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Taiwan’s 2nd largest prestigious

Chinese fast food brand: Formosa Chang.

Design "diverse service model for whole-process

refrigeration chain" and "whole-process

refrigeration temperature tracing mechanism

featuring at least 30% energy saving, using the

refrigeration technology to enhance the flavor of

food.

Case: Cross-logistics Food Cool Chain

Seek to create added value for the traditional industries

and expand the application of cross-logistics refrigeration

chain, so as to make for the participation of more food

service providers and establish an innovative industry

chain featuring delicious food and low carbon emissions.

Value

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Case: Cross-logistics Food Cool Chain

Innovative Multi-mode Business Model

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Conclusion

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• Global ICT makers’ capabilities extend from manufacturing to

product concept, product design and services.

• As smart, convergence, mobility and personalization are key

trends in the global ICT industry, global ICT makers have

developed the necessary capabilities to deal with these trends

and have expanded their operations accordingly.

• Thanks to the 15 year contribution of the ITA, follow the

footsteps of progress of technologies, the need for expand

product coverage and encourage more participants to join is

apparent and urgent.

Liberating ICT products, accelerate to prosperity

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Thank you