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Chinese mainland to allow Taiwan firms involvement in 5G development

5G in China. [Photo/IC]. Sketched by the Pan Pacific Agency.

Pan Pacific Agency | COMMUICATION AGENCY FOR PACIFICA REGIONS

TAIPEI, Nov 4, 2019, Global Times. Taiwan companies are encouraged to join the Chinese mainland’s 5G development and share its 5G development opportunities, Global Times reported.

Taiwan-based companies will be allowed to participate in the Chinese mainland’s 5G technology research and development, standard setting, product testing and network building based on market principles, the Taiwan Affairs Office of the State Council said on Monday.

The mainland’s information and telecommunications market is huge and the 5G industry sees great potential, which will bring new opportunities for relevant Taiwan companies, the office said.

The mainland’s basic telecommunications carriers are now boosting the establishment of 5G networks in an orderly manner. By September, more than 80,000 5G base stations had been built in the mainland, according to the office.

Taiwan-based semiconductor companies are competing to seize 5G opportunities in the mainland. Taiwan media website udn.com reported in June that the rising purchases of 5G semiconductors from Taiwan by mainland smartphone manufacturers and telecommunications companies will benefit MediaTek Inc, Realtek Semiconductor Corp and RichWave Technology Corp.

5G will greatly improve Realtek Semiconductor Corp’s market share in terms of Wi-Fi chips, the report said, noting that RichWave Technology Corp’s front-end module – a built-in module used in wireless circuits – has also been adopted by mainland clients.

By 2018, Huawei was already the second-largest customer after Apple for electronics-hardware companies from Taiwan. Huawei’s procurements in Taiwan totaled $12 billion in 2018, Taiwan media Commercial Times reported.

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