Invest in TaiwanDepartment of Investment Services, MOEA
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The world-class software company is opening a multi-function research and technology center in Taiwan with hope that by this local direct investment the new products and new technologies may use Taiwan's rapid volume manufacturing sector, and as a result, the products will become available in the market in the shortest time possible.
As technology evolves with each passing day, such as radio frequency identification (RFID), portable multimedia player (PMP), and global positioning system (GPS) all become the life-related hot technology. On how to bring technology into life, a research and development center plays quite an important role. Therefore many big corporations have recently come to Taiwan and set up technology-related research centers, and especially among them Microsoft.
In the recent years, Microsoft has established the R&D units and technology centers with various functions in Taiwan, including Microsoft Technology Center, RFID Excellence Center and a Windows Media Engineering Center. With the local direct investment, Microsoft expects that the new products and technologies may use Taiwan's high volume manufacturing sector to reach the goal of coming to the market in the shortest time possible.
For example, the first of its kind in South Asia, the Microsoft Technology Center (MTC) in Taiwan, presumably at a cost of NT$ 5.5 hundred million, is designed as mainly a developing center for software industry at the early stage, yet it will work toward the integration of software and hardware. This center will apply Taiwan hardware companies' strong research and development capability, in coordination with Microsoft project management, so as to fast produce the terminal products of newest technology and shorten the research and development process of marketable products. Microsoft Taiwan says that the annual full-time personnel may reach 140 persons, and within three years the center is expected to assist Taiwan's 70 software companies to develop 100 software solutions and cultivate 2800 software talents. As a result, it will hopefully create 4 billion NT dollars product value for Taiwan software industry.
Given that multi-media application is on the right path for digital home, Microsoft invests NT$ 107 million in Taiwan to set up the world's first Windows Media Engineering Center (WMEC). With this center, Microsoft intends to apply the next-generation multi-media technology, Windows Media Video (WMV), so as to launch products of various kinds through technology development and field tests.
In the process of developing products with new technology, many areas may have their own evolving process under the geographical differences. Such as US, Europe and Japan, these countries highly regard new technology development. Once technology is fully developed and a new product launched, it often happens that the product is completed before planned-time; however, the market likely fails to fully appreciate it. Sometimes it may occur that the technology is successfully developed, yet its early-stage product is evaluated as a failure.
In Taiwan, the mass production of new-tech products is easily accomplished because the production chain of Taiwan's electronic industries is quite complete. From the upstream chip-manufacturing plants, such as TSMC and UMC, to the midstream chips assembly plants, and to the OEM responsible for manufacturing actual products, the complete range covers the whole process of new product launching. There is no need to be away from Taiwan to get the product tested and manufactured. Since the process is short-termed, it is certain that there won't be any delay caused by transportation or other factors.
With a new product being out on the market, how to learn about customers' response within the shortest time becomes a major task for manufacturers. Especially when the manufacturer intends to launch a widely applied product, a must-job is to conduct the planned product tests and efficiently decrease the potential problems which may happen after mass production. With a strong consuming capability and hunger for new stuff, especially for electronic products, Taiwan consumers are viewed as ideal targets for market tests. Using the customer response in Taiwan, those manufactures who want to go for other regional markets may try to facilitate product modification and efficiently promote their products to other markets.
According to the local GPS researchers on consumer electronics, if a product gains its reputation in Taiwan market, it is likely to sell well in other markets. Taiwan consumers are fairly keen on testing. From a user interface to a cross-comparison among similar products, many consumers like to conduct tests on their own and then announce their review or test results in some forums or blogs. From the user responses, the researchers can find key problems which require improvement, and find out user habits so as that the new product is well positioned and of less application errors.
While developing new technology, manufacturers are concerned about volume production, and moreover about the environment available for field test. Taking Worldwide Interoperability for Microwave Access (WiMAX) as an example, it has currently become the hot wireless communication technology and a key research point for the manufacturers of communication, network, mobile phones and laptops. WiMax is most powerful in establishing long-distance wireless connection at the lowest cost.
As for the development of anther hot technology, RFID, Taiwan won't be absent either. In the opening press conference of Asia's first Pacific RFID Performance Solutions, Mr. Shih Yen-Shiang, Administrative Vice Minister, Ministry of Economic Affairs, is present to demonstrate the government's support on technology development in Taiwan. The members of the center do not only include the non-governmental units, such as EPCglobal Taiwan, Cheng Loong Corp., and the Electronics Testing Center, Taiwan, participate in this center, but also the Industrial Technology Research Institute (ITRI), and the behind-scene support comes from the Department of Industrial Technology and the Department of Commerce, MOEA. Thus it is clear that the government is positive in supporting the development of the leading technology.
Those international big corporations that set up research centers in Taiwan are relatively rewarded with certain local advantages. After all, in this age of ten times fast, new technology must be developed, and the importance of launching new products in time can never be ignored.
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