Intel invests $500M in Taiwan WiMax

Intel and the Taiwan Ministry of Economic Affairs will evaluate the creation of a business entity for WiMax system integration and invite relevant Taiwanese industries to invest in this business entity.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 4/22/2008

Intel Corp has agreed to invest $500 million over the next five years in Taiwan’s technology efforts, including those for WiMax.

The MPU leader Monday announced that it has signed a memorandum of understanding (MOU) with the Taiwan Ministry of Economic Affairs (MOEA) to jointly accelerate the commercial deployment of WiMax in the island country. Under the terms of the MOU, “Intel and the MOEA will evaluate the creation of a business entity for WiMax system integration and invite relevant Taiwanese industries to invest in this business entity, whose services will include consultation on WiMax network infrastructure design, and integration of WiMax equipment, services, applications, as well as client devices,” according to a statement from Intel.

Intel gave no specific details on the “business entity” in its statement, but did disclose that it and the MOEA have formed a task force to discuss the investment target, investment amount, business model, and operations of the business entity. Intel said these details are expected to be finalized by the end of 2008. 

“The significance of our collaboration with Intel is to facilitate a business entity that can integrate the industry ecosystem to form a complete WiMax industry supply chain,” said Mei-Yueh Ho, chairperson of Taiwan’s council for economic development and planning, in the statement. “Such a partnership will enable Taiwan to deliver total solutions and maximize Taiwan’s contribution to the global WiMax industry.”

Intel and the MOEA will also work together to facilitate the industry to improve compatibility and interoperability between WiMax network infrastructure and devices. Intel will use its global WiMax testing experience to help Taiwanese vendors develop WiMax equipment and solutions that are compatible and work well with global WiMax networks.

This MOU follows a 2005 agreement between Intel and the MOEA to collaborate on accelerating the awareness and deployment of WiMax technologies in Taiwan. From that stemmed the promotion of the MOEA’s “M-Taiwan” program and WiMax applications at Intel Developer Forums. Also in March, Intel set up the WiMax Program Office in Taiwan, appointing Robert Wang as the director of this office to coordinate for the cooperation with government organizations, operators, and industries in Taiwan on WiMax.

“Since the Ministry of Economic Affairs signed an MOU with Intel in 2005, we have been working with Intel to assist the Taiwan network communications industry in developing WiMax equipment and conducting international conferences as well as exhibitions, and inviting the WiMax Forum to set up its certification lab and office in Taiwan. As a result, the development of WiMax has been very rapid in Taiwan,” Yen-Shiang Shih, Taiwan’s administrative vice minister of economic affairs, said in the statement. “The future challenge that the Taiwan WiMax industry faces is how to offer innovative applications and services, develop WiMax-based mobile devices, and provide total solutions. Such needs have prompted our cooperation with Intel again.”

The $500 million investment and planned business entity continues Intel strategy to make 2008 “the year of WiMax.” The company first laid out plans for this year’s WiMax acceleration at its September 2007’s Intel Developer Forum.

“The deployment of WiMax networks and the integration of WiMax into notebook PCs and various mobile devices starting this year will shape the future of wireless broadband communications and deliver a truly mobile and personalized Internet,” said Sean Maloney, executive VP and general manager, Intel sales and marketing group, in the statement. “The broadband infrastructure and complete industry ecosystem in Taiwan amounts to an outstanding foundation for the development of WiMax. The completion of Taiwan’s broadband wireless licensing marks a new chapter in the development of WiMax and building on our previous agreement in 2005, Intel is pleased to further collaborate with the Ministry of Economic Affairs again to jointly promote the development of WiMax in Taiwan.”

The Intel investment comes just weeks after Intel said it would invest $500 million in a second Intel Capital China Technology Fund that will be used for investments in wireless broadband, among other technologies.