Intel Pledges to Up Ante On Taiwan's WiMAX Biz

Taipei, April 23, 2008 (CENS)--Intel will spend US$500 million over the next five years ending in 2013 on its WiMAX investment and procurement of the equipment in Taiwan, in addition to its original pledge to invest an undisclosed amount of capital to open WiMAX joint venture in Taiwan, according to an Intel top executive.

Intel Executive Vice President Sean Maloney noted the procurement items would include WiMAX chips and consumer premise equipment. Taiwanese suppliers likely to benefit from the procurement deal include MediaTek Inc., Faraday Technology Corp., GemTek Technology Co., Ltd., D-Link Corp. and Zyxel Communications Corp.

Taiwanese industry watchers viewed Intel's latest commitment as the company's bid to drum up support of Taiwan's new government for WiMAX deployment in Taiwan. In reaction to Maloney's commitment, president-elect Ma Ying-jeou promised in the face of the Intel executive to attend the June Computex trade show in Taipei. Ma will be sworn in the office in May 20.

Maloney will also present himself at the June computer trade show to co-announce the details of his company's investment plans in Taiwan with senior officials of the Executive Yuan, the Ministry of Economic Affairs and the Council for Economic Planning and Development.

Maloney signed a memorandum of understanding (MOU) this Monday (Apr.21) with Taiwan's Ministry of Economic Affairs on opening a WiMAX joint venture in Taiwan in collaboration with local manufacturers.

Taiwanese industry watchers estimate the latest and previous commitments to cost Intel around NT$20 billion (US$666 million at US$1:NT$30) in investment capital.

The joint venture will assess plans to put money into Taiwanese network-communications equipment makers and WiMAX-service providers. Taiwanese companies of both sectors reported to receive the investment capital include GemTek, D-Link, Tatung InforComm Co., Ltd., First International Telecom Co., Ltd., and Global Mobile Corp. However, Intel said it was still assessing.

As part of its WiMAX commitment in Taiwan, Intel unveiled a WiMAX office in Taiwan last month. It is understood that Maloney in person oversees the organization of the Taiwan office and assigned Robert Wang, a former Intel director of sales for Asia Pacific, as director of the Taiwan WiMAX office.

Wang is chosen because of his good relationship with Taiwanese enterprises, an advantage which Intel expects may help convince Taiwanese enterprises to join its investment programs in Taiwan.