The Asia Silicon Valley Development Plan

From IT to IoT ─ Engineering a New Industrial Transformation for Taiwan

Asia Silicon Valley Development Agency

September 11, 2017

Kung, Ming-Hsin Chief Executive Officer

Outline

IoT Development

Vision and Strategies

Implementation

Goals

Why Taiwan?

2

IoT Development

3

Forecast of Global IoT Economic Value by 2025

4

Source: IOT ANALYTICS: IoT Market – Forecasts at a glance

Global Potential Economic Impact of the IoT in 2025

5

Source: McKinsey, 2015

Vision and Strategies

6

Economic Development

Innovation- driven Growth

Quality Employment

Asia Silicon Valley Development

Plan

Vision

7

Transform and upgrade Taiwan’s industrial structure

with IoT

Drive economic growth with innovation and

entrepreneurship

Optimizing Taiwan’s startup

and entrepreneurship

ecosystem

(9 projects: NT$1.65B)

Enhancing linkages with renowned tech clusters

worldwide

(4 projects: NT$0.3B)

Completing IoT value chain

(19 projects: NT$4.51B)

Establishing demonstration sites for smart products

and services

(19 projects: NT$3.97B)

Four Strategies and Budget 2017

Unit: NT$ Billion Source: DGBAS

Ministries MOEA MOST MOTC MOE MOHW Others Total

Budget 2017 7.44 (71.3%) 1.95 (18.7%) 0.55 (5.2%) 0.30 (2.9%) 0.14 (1.3%) 0.06 (0.6%) 10.44 (100%) 8

Build an IoT & start-up ecosystem with heavy focus on R&D

National Central Univ., National Taiwan Univ., National Tsing Hua Univ., National Chiao Tung Univ. and others

Industrial Technology Research Institute (ITRI), Institute for Information Industry (III), and other prominent global institutes

Universities

Startups

Corporations

Research Institutes

R&D Clusters

Taiwan corporations, e.g. Acer, Inventec, Chunghwa Telecom, Advantec, Asus

International corporations, e.g. Cisco, HPE, IBM

Startups established by universities, research institutes and corporations

Startups launched with entrepreneurial spirit

Innovative R&D centers founded by multinational corporations

• Legal & accounting services

• Regulatory adjustment

• Link and integration platforms

• Test beds and supportive policies

• Recruitment services

• Talent exchanges

• Business angels, VCs, accelerators

• Capital assistance Policy

Environment • Social Network • Infrastructure

Local Industries and Environment

9

1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (1/5)

1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (2/5)

Deregulation of overseas recruitment and retention

Relax restrictions on attracting foreign students

Strengthen function of "Contact Taiwan", the one-stop online talent recruitment service

Improve university start-up regulations and incubation mechanisms

Provide financial support to post-doctoral fellows to study or train overseas and learn about global innovation trends

Global talent attraction

Local talent cultivation

10

Increase talent supply

Provide business expansion capital Increase early-stage investments Relax IPO listing requirements and lower transaction costs Establish national investment company, industrial innovation & transformation

fund etc.

11

Seed Stage

Startup Stage

Expansion Stage

Mezzanine Stage

Preparation Stage

Business revenue

IPO

Startup grants Capital market fundraising (stock exchange listing)

Later-stage investments Early-stage investments

Young Entrepreneur Startup Financing Loans

HeadStart Taiwan Investment program

Business Angel Program

Taiwan Silicon Valley Technology Fund

Program for Financial Support of Creative Enterprises

Equity Crowdfunding Platform

Go Incubation Board for Startup and Acceleration Firms (GISA)

Micro Biz Loans

Small Business Innovation

Research Program (SBIR)

Special Project Loans for Innovation &

Development of SMEs

National Investment Co. Management Fund up to NT$10 B

Industrial Innovation & Transformation Fund up to NT$100 B

Angel Fund, Startup Fund

1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (3/5)

Adjust laws and regulations

19

Laws and regulations related to the Digital Economy

Application Issues Fundamental Issues

Cyber security and personal information protection

Establishment and operation of corporations

Digital assets and corporate fundraising

Digital talent cultivation and recruitment

Digital governance

Regulatory sandbox

Remote medical services and healthcare

E-commerce

Fintech services

Sharing economy

Internet of Things (IoT)

Current major economic legislation

Income Tax Act

Deregulation of overseas

recruitment and retention

Corporate anti-corruption and bribery laws

Deregulation of professors and students starting companies

on campus

Accounting and auditing regulations favorable to industrial innovation

Regulations encouraging government to procure products or

services from startup companies

1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (4/5)

Build an innovation environment

Measures for the Future

13

Enhance functions of existing local startup clusters, and strengthen connections with clusters throughout Asia

Upgrade and transform university incubators

to partner with local renowned accelerators

Promote collaboration between state-owned enterprises or large corporations and startups and accelerators

Existing Tech Clusters

International Entrepreneur Initiative Taiwan 2.0

Start-Up Hub

TAF Innovation Base

Social Enterprise Hub

1、Optimize Taiwan’s Startup and Entrepreneurship Ecosystem (5/5)

2、Enhance Linkages with Renowned Tech Clusters Worldwide (1/3)

14

Partner with global innovation clusters for technology, talent, capital and markets

AR, VR

IoT

ICT

Digital Education

Semiconductors

Smart Manufacturing

Smart Energy

Smart Tourism

Forge connections with R&D capabilities of Silicon Valley and other global innovation clusters

National Investment Co.

Innovation R&D Center

2、Enhancing Linkages with Renowned Tech Clusters Worldwide (2/3)

Asia Silicon Valley Development Agency (ASVDA) – Set up on December 25, 2016 – Facilitating business corporations – Integrating resources to promote IoT

and startups

ASVDA Bay Area Office – Set up on January 14, 2017 – Integrating resources of Taiwan

Government’s innovation and entrepreneurship overseas

– Helping local startups go to the U.S.

Smart City Working Group ⁻ A Taiwan-U.S. Smart Cities Working

Group launched in April 2017

Global Entrepreneurship Congress (GEC) 2017 ⁻ CIO of ASVDA presenting the Asia Silicon

Valley Development Plan in GEC 2017 in Johannesburg, South Africa

15

2、 Enhancing Linkages with Renowned Tech Clusters Worldwide (3/3)

Microsoft IoT Innovation Center – Launching in Taiwan in Oct 2016 to help

Taiwanese corporates to come up with IoT solutions

Qualcomm Technology Lab - Taiwan – Founding in Nov 2016, focusing on IoT,

5G, IoV etc. – Assisting Taiwanese companies in areas

of advanced technologies, service design and product launch

FbStart Accelerator – Setting up in Taiwan in March 2016 – Cooperating with AppWorks and TSS,

providing tools and services to Taiwan’s startups

Introduce global startups into Taiwan – 24 global startups invited to exhibit at

InnoVEX 2016. Eight teams successfully partnering with Taiwan corporates

– 44 global startup teams displaying at Meet Taipei 2016

– 6 leading startup entrepreneurs including Sigfox co-founder visiting Taiwan under the Visiting Entrepreneurship Program

Help Taiwan startups go global – Taiwan Startup Stadium (TSS) leading 12

local teams to display at Disrupt San Francisco 2015 & 2016

– TSS also building network with New York startup communities

More European presence in Taiwan – La French Tech set up Taiwan office at end

of 2016 – Austrian startup delegation will visit

Taiwan in July 2017 16

3、Build a complete IoT Value chain(1/5)

17

Encourage university spin-offs, research spin-offs, or collaboration with startups

Promote innovation of IoT related technology, and help businesses carry out cross-field integration

Develop university courses, both in-class & online, on software & hardware-software integration

Target sectors such as sensors, networks and services, and get involved in standard formulation and patent registration

Enhance software capabilities

Commercialize IoT research findings

Build an IoT ecosystem

Develop industries to fill the existing IoT tech gap

Industrial innovation & transformation fund Help existing hardware MFRs to transform themselves into system integrators

18

80% of IoT business

opportunities to come from

services

Taiwan’s strengths

Source: Market Intelligence & Consulting Institute, Industrial Economics and Knowledge Center

Taiwan’s strengths

IoT service (transportation, energy, commerce, manufacturing, medicine)

big data analysis data mining service operational intelligence analysis

big data security business intelligence applications data: income, operations

4th Layer

Application services

data center software as a service (SaaS) cloud service

quality control and service management customer needs management

3rd Layer

Data collection

broadband (DSL, fiber optic)

mobile broadband (3G, 4G, 5G) satellites, GPS

wireless personal area network (NFC, Zigbee) Wi-Fi

2nd Layer

Internet infrastructure

gateway smart lighting e-healthcare

sensing device energy management in-vehicle network

smart plugs smart appliances smart grids

IoT platform protocols

1st Layer

Object detection

3、Build a complete IoT Value chain(2/5)

Establishing Major League IoT, ASVDP

Major

League IoT,

ASVDP

Organizing a prototype

national team

formulating Industrial standards

providing policy suggestions

linking to government demonstration programs

19

3、Build a complete IoT Value chain(3/5)

Major League IoT, ASVDP Composed of Acer, MediaTek Inc, Advantech, Cisco, Microsoft,

IBM and other corporations, associations, startups, SMEs, and institutes

More than 230 companies and institutes registered as members. Two general meetings have been held so far.

Startup Associations Industrial

Alliance/Association

Research Institutes SMEs

Multinational Corporations

Cross-industry Cooperation

Domestic Enterprises

20

3、Build a complete IoT Value chain(4/5)

SIG Meetings

Held in Feb and May 2016 respectively. Hundreds of people from various companies attended

Discussion focusing on 8 areas including smart transportation, smart healthcare, industry 4.0 etc.

Smart Transportation

Smart Homes

Smart Manufacturing (or industry 4.0)

Smart Healthcare

Smart Agriculture Smart Business Smart Logistics Smart Energy and Environmental

Scanning

21

3、Build a complete IoT Value chain(5/5)

Exploit Taiwan’s strengths and advantages to tackle local and global problems

Maximize Taiwan’s strengths to develop new industries such as smart logistics, future cars, healthcare, smart robots and smart cities

Make best use of Taiwan’s uniqueness, e.g. a comprehensive medical database derived from the National Health Insurance system

Help solve global issues such as healthcare, medical services, food safety etc.

22

4、 Construct Diversified Test Beds for Smart Products and Services (1/3)

4、 Construct Diversified Test Beds for Smart Products and Services (2/3)

Test beds for demonstration Nationwide: AR, VR, e-commerce

City/county-wide: Smart logistics, healthcare, commerce, cities and grids; make industrial parks smarter

Regional: e.g. Smart transportation for Keelung, Taipei, Taoyuan, and Hsinchu; smart manufacturing in central Taiwan; smart energy in southern Taiwan; and smart tourism in eastern Taiwan

23

AR, VR

IoT ICT

Digital education

Semiconductors

Smart manufacturing

Smart energy

• Smart logistics • Smart healthcare • Smart transportation • Smart industrial parks Smart

tourism

4、 Construct Diversified Test Beds for Smart Products and Services (3/3)

Establishing Demonstration Sites for Smart Products and Services

Focusing on popular issues such as smart transportation, smart healthcare etc.

Testing and verifying technologies and buz models at selected demonstration sites

Promoting service-oriented solutions

Expanding to the Island’s other cities and overseas markets

Smart City Demonstration

24

MOEA is launching a grant scheme and calling for proposal for Smart City solution

Future Focus

ASVDP will concentrate on the following

six plus one key areas in the future

Future Focus

26

Self-driving Cars

Mobile Life

IoT Cybersecurity

AR/VR

AI New Southbound policy

and Global Linkage

Startup

Implementation

27

The Plan’s Implementation Center

28

Chief Executive Officer

Think Tank

Chief Research or Technology

Officer (CRO or CTO)

Chief Human

Resources Officer (CHRO)

Chief Financial & Investment

Officer (CFO & CIO)

Chief Legal and Environmental Commitment

Officer (CLO & CECO)

Chief

Administrative Officer (CAO)

Coordination Committee for collaboration among industry,

governments (central and local), universities & research institutes

Goals

29

Qualitative Goals

Connect to Silicon Valley and other global tech clusters Forge connections with their advanced R&D capacities and make Taiwan the best partner for global corporations with good potential

Develop industries for the next generation Make Taiwan a leading global tech cluster for the Internet, Big Data, IoT and other new industries

Become an innovative startup destination for young Asians Optimize Taiwan’s startup ecosystem by incubating local startup teams and bringing outstanding global talent to Taiwan

30

Taiwan- Silicon Valley Connection

Future Industry

Development

Innovation & Entrepreneurship

Quantitative Goals Increase Taiwan’s IoT global market share

(Projection of combined impacts of the Asian Silicon Plan and other digital economy plans)

5%

Grow 100 successful companies, either local startups enjoying successful exits or local R&D centers set up by large corporations 100

3 Develop and establish 3 global systems integrators in Taiwan

2 Successfully attract investments from 2 world-class companies

1 Create 1 online learning platform for the IoT related sectors

from 3.8% in 2015 to 4.2% in 2020 5% in 2025

31

WHY TAIWAN?

32 Copyright© National Development Council. All Rights Reserved.

IC Foundry (No.1)

LCD panel (No. 2)

PC / Notebook (No.1)

Bicycle (No.1)

5 companies rank among the world’s Top 10 Original Design Manufacturers (ODM)

140,000 Manufacturing

SMEs

33

Taiwan is leading in the world …

IC design (No. 2)

Server (No.1)

Tablet (No. 2)

Sources : Industrial Development Bureau 2015 statistics Copyright© National Development Council. All Rights Reserved.

• The 7th best developer in the world

• The 9th largest country in terms of total developers

• The 5th hottest app development cluster (Taipei)

Mozilla 2016 Report

HackerRank 2016 Report

34 Copyright© National Development Council. All Rights Reserved.

Taipei Within 1 hour’s drive…

• Market of 10M+ people

• 70+ hi-tech clusters & software parks

• Top 3 universities

• Main international airport

• Two international ports

• Taiwan Central government

35

One can access

Sources : Wikipedia

Copyright© National Development Council. All Rights Reserved.

Tokyo

Seoul Beijing

Shanghai

Taipei

Hong Kong

Bangkok

Singapore

2 Hours

5 Hours

2.55 hours (avg.)

36

Strategic Location in the Asia-Pacific region

Sources : Invest Taiwan

Strong entrepreneurial spirit

• 1st in Asia (Global Entrepreneurship Index 2016)

37

Easy to do business

• 4th in Asia (World Bank : Ease of Doing Business 2016)

Great IPR protection

• 4th in Asia (The International Property Rights Index 2016)

Abundant creative talents

• 1st in Asia (The global competitiveness report 2016-2017 - Innovation Capacity)

The best place for expats

• 1st in the world (InterNations Expat Insider Survey 2016)

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PROTOTYPING

MEDIA

CROWDFUNDING

TAIWAN STARTUP ECOSYSTEM

COWORKING SPACE

ACCELERATOR

VENTURE CAPITALS

ENTERPRISES STARTUPS

GOVERNMENTS

38 Copyright© National Development Council. All Rights Reserved.

Taiwan Internet of things new company

2013-2017.7 total of new companies 196,946

7,326 4,025

10,994

5,311 Emerging

application potential industry

15,019

資料來源：經濟部商業司、財政部財政資訊中心

4th Layer Application services

3rd Layer Data collection

2nd Layer Internet infrastructure

1st Layer Object detection

1,372

The number of applications services companies has increased significantly in the past 12 months

資料來源：經濟部商業司、財政部財政資訊中心

4th Layer Application services

1st Layer Object detection

3rd Layer Data collection

2nd Layer Internet infrastructure

41

Taiwan is ready Welcome to Join Us !!!

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