Recently, Qualcomm faced a significant fine from Taiwan's Fair Trade Commission, which has led to a shift in the company's relationship with Taiwan. In response, Qualcomm has reportedly suspended its 5G collaboration with Taiwan, sending shockwaves through the local industry. This move, seen as a major development, has sparked concerns among Taiwanese businesses and officials.
The Taiwan Industrial Technology Research Institute (ITRI) recently received notice from Qualcomm that their ongoing 5G partnership would be put on hold. This decision is viewed as a blow to the local tech sector, especially after the fair had imposed a hefty fine of 234 billion New Taiwan Dollars (approximately 5.1 billion yuan). The ITRI had high hopes for this collaboration, seeing it as a crucial step in advancing Taiwan's 5G capabilities.
Last year, Qualcomm's executive chairman, Paul E. Jacobs, visited Taiwan and signed a memorandum of understanding with the "Ministry of Economic Affairs." This agreement was part of the broader "Asia Silicon Valley Plan," with plans to invest millions of dollars in setting up a technical laboratory in Taiwan. The goal was to support the development of the local industrial chain, enhance product design, and accelerate the launch of new services.
Earlier this year, Qualcomm and the ITRI further solidified their partnership by signing a letter of intent. The collaboration aimed to speed up the commercialization of 5G base stations and reduce costs for ODM and OEM companies in Taiwan. However, this four-year project has now been abruptly halted, raising questions about the future of 5G development in the region.
Taiwan's communication technology has historically lagged behind Other regions, particularly due to past failures in technologies like Intel's WiMAX. As a result, the ITRI and the local industry saw Qualcomm's partnership as a vital opportunity to catch up. Now, with the sudden suspension, many are worried about the long-term impact on Taiwan's tech ecosystem.
Regarding the fine, the response from the local industry has been mixed. While some, like MediaTek, have expressed support for the fair, most remain neutral. Tong Zixian, chairman of Heshuo, admitted confusion over the penalty and questioned the basis of the calculation. He suggested that if every member of the fair bought a few chips for reference, the numbers would be more transparent.
Taiwan's political circles have also taken notice of the situation. However, the Fair Trade Commission remains firm in its stance, emphasizing that the ruling was necessary to uphold the integrity of its trade laws. "If we don't take action, what's the point of having these regulations?" they said, insisting there is no room for compromise.
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