Spending on research and development in the tech sector in Taiwan hit a record high in 2021, up more than 14 percent from a year earlier, according to the National Science and Technology Council (NSTC).
Data compiled by the NSTC showed R&D expenditure in the domestic tech sector totaled NT$820.6 billion (US$26.72 billion) in 2021, up 14.2 percent from a year earlier.
The 2021 R&D spending in the tech sector accounted for 3.77 percent of Taiwan’s gross domestic product, also a new high in the country compared with 3.61 percent in 2020, the NSTC said.
The NSTC said the private sector accounted for the largest amount of tech R&D spending in 2021 with NT$696.3 billion, up 16.4 percent from a year earlier, or 84.9 percent of the total in Taiwan, while the government spent NT$124.3 billion on tech R&D, up 3.1 percent from a year earlier.
In 2021, enterprises, in particular in the local semiconductor industry, served as the major driver to R&D spending growth due to solid global demand for chips made on high-end processes used in emerging technologies such as 5G applications, Artificial Intelligence of Things (AIoT), online learning and remote work during the COVID-19 pandemic, the NSTC said.
R&D spending by enterprises totaled NT$691.59 billion in 2021, up 16.6 percent from a year earlier, the NSTC added.
As many tech giants are based in the Hsinchu Science Park, Central Taiwan Science Park and Southern Taiwan Science Park, supervised by the NSTC, these accounted for 45.4 percent of enterprises’ total R&D spending in 2021, up from 42.3 percent in 2020.
In addition to semiconductor suppliers, the three science parks also house manufacturers from the computer and peripherals, communications, optoelectronics, precision machinery and biotech industries which were also keen to spend on R&D, the NSTC said.
Source: Focus Taiwan News Channel