Taiwan has competitive edge in potentially polarizing AI world: Tech Company Head
In the artificial intelligence (AI) era, enterprises and countries already at the top might get stronger, but Taiwan still has plenty of advantage with its excellence in hardware manufacturing, a tech company head told a forum in Taipei.
AI will be immersed in people's daily life as the internet has become in the past 30 years, said Pegatron Co. Chairman Tung Tzu-hsien at the 2024 Taiwan AI Academy Annual Conference.
Strength in Hardware Manufacturing
Tung emphasized that unlike the internet age, where disruption led to shifts in market share, AI has the potential to reinforce the strength of already powerful enterprises and countries due to the substantial requirements for electricity and computing power in its development.
Developing large language models like Open AI's GPT-4 and Google's Gemini Ultra requires significant financial investment, with costs reaching as high as US$190 million.
High Cost of AI Infrastructure
Tung highlighted the massive use of computational power and electricity in AI development, which has prompted strategic investments in energy sources like nuclear power plants.
The chairman noted that even tech giants like Apple Inc. have shifted their AI development strategies to partnerships with companies like OpenAI, underscoring the importance of market positioning in the AI-dominant landscape.
Taiwan's Advantage in Semiconductor and Hardware Manufacturing
Tung expressed optimism about Taiwan's semiconductor and hardware manufacturing sectors, citing the country's strength in cloud equipment and edge devices such as personal computers and phones, all of which are crucial for AI implementation across various industries.
The chairman highlighted Taiwan's projected semiconductor industry output value, expected to surpass NT$5.3 trillion this year, attributing the growth to the burgeoning AI industry.
Future Partnerships in Electric Vehicles
Despite Taiwan's lag in electric vehicle (EV) adoption, Tung noted the country's expertise in electronic components, positioning it as a valuable partner for leading global vehicle brands in the EV market.
