Taiwan 5G Open RAN Market

With its combination of strong domestic demand, and local companies that complement U.S. 5G capabilities, Taiwan presents top global export opportunities in this sector. As one of the world’s most important ICT manufacturing hubs, Taiwan is a regional high-tech supply chain center due to its advanced R&D capabilities in semiconductors, 5G telecom and other ICT-related fields. Taiwan intends to leverage 5G technology, and the Internet of Things it powers, to maintain its competitive edge in ICT manufacturing. In 2019, the Taiwan Authorities released the “5G Action Plan,” which included funding up to US$658 million over a four-year period to stimulate 5G development on the island. This public investment has created opportunities for American ICT companies to work with the five major mobile carriers in Taiwan: Chunghwa Telecom, Taiwan Mobile, Far EasTone, Asia Pacific Telecom and Taiwan Star Telecom.

In addition to the “5G Action Plan,” Taiwan’s Asian Silicon Valley Development Agency (ASVDA) announced a 5G incentive program with US$90 million in funding confirmed to promote 5G/AI innovation applications for smart cities. The program aims to accelerate the development of the digital economy in Taiwan by stimulating the integration of local 5G open network telecom, also known as Open Radio Access Networks (ORAN). Opportunities for U.S. companies with smart transport, smart health, and ORAN technology are strong.

Specific to ORAN, there are opportunities for U.S. software companies to sell to local telecom hardware suppliers to develop the Open RAN total solution in Taiwan.  In fact, Taiwan is actively seeking cooperation between Taiwan industry and foreign industry to produce ORAN solutions in Taiwan, which could potentially be replicated in other regions including Southeast Asia. 

In 2020, GM Taiwan hosted a successful event that promoted an integrated 5G solution between U.S. and Taiwan companies that received excellent results. GM Taiwan will host a similar 5G event with the Taiwan Authorities and the five local carriers in December 2021 that will showcase U.S. software solutions for Open RAN technology.

For further telecom market related information in Taiwan, please contact Commercial Specialist Rita Chen at Rita.Chen@trade.gov in the Commercial Section of the American Institute in Taipei.