At the Cabinet's weekly meeting Thursday, Premier Su Tseng-chang received a Ministry of Economic Affairs' briefing on efforts to expand Taiwan's core supply chain advantages and create 5G development opportunities. Taiwan's internet communications industry chain is expected to surpass NT$1.2 trillion (US$43.2 billion) in output value this year, becoming one of Taiwan's leading industries. To develop value-added 5G applications and services, the government is planning to devote NT$49 billion (US$1.8 billion) from 2021 through 2025 to help businesses expedite the construction of 5G infrastructure across the country and comply with regulatory changes. Tax deduction incentives will also be provided in return for investments to encourage participation by businesses.
According to research conducted by international economic analysis institutions, Premier Su said, the total value of 5G-driven global economic activities will exceed US$13 trillion by 2035. Technologies based on 5G will also be applicable to a wide range of fields such as intelligent medicine, smart cities, smart manufacturing, entertainment and automotive uses. It is expected to have significant development potential and bring about wide-ranging industrial transformations.
The premier went on to say that projected output value for Taiwan's internet communications industry chain this year is NT$1.2 trillion, making it one of Taiwan's bellwether industries, and the government is therefore aggressively developing value-added 5G applications and services. Beginning this year through 2025, it plans to invest NT$49 billion from the Forward-looking Infrastructure Development Program budget to help industry players accelerate and promote universal 5G system construction. The government has also amended the Statute for Industrial Innovation to provide investment tax concessions that encourage businesses to invest, and has built Taiwan's largest 5G research and innovation testing ground in the Asia's New Bay Area in Kaohsiung to create a comprehensive industry ecosystem and actively train personnel to meet industry needs. These moves reflect the government's comprehensive approach to creating a high-quality environment for 5G innovation and use through budget allocations, legal amendments, innovation and test sites, and personnel training.
The premier also emphasized that the whole world has acknowledged Taiwan's expertise in the information and communications technology industries, and our competitive advantages in semiconductors, components, and terminal equipment including mobile phones, all of which play a key role in the global 5G industry ecosystem. Taiwan's democratic institutions, open market, comprehensive legal environment, government information transparency, and high cybersecurity standards also meet international needs for "clean" supply chains, making Taiwan the best, most reliable trade partner for countries around the world.