Gov't Will Invest NT$2 B. in Localized Production of AP

Taipei, Dec. 25, 2012 (CENS)--The government will appropriate a budget of NT$2 billion in the next three years to assist the production of application processor (AP), the brain of smart phone, in Taiwan, thereby contributing to the formation of a localized industrial chain for smart phone in Taiwan, reported Shih Yien-shiang, minister of economic affairs, yesterday (Dec. 24).

MediaTek, Taiwan's leading fabless IC maker, has reportedly obtained the approval of the Ministry of Economic Affairs (MOEA) for the government subsidy for its AP development project, which will be kicked off after the special budget for AP development is ratified by the Executive Yuan (the Cabinet).

Meanwhile, in view of the booming sales of smart handheld devices, the smart handheld devices panel under the MOEA is also pushing the local production of AMOLED (active-matrix organic light-emitting diode), a display technology for mobile devices.

Shih Yien-shiang noted the development of locally made AP and AMOLED will enable Taiwan to shed the reliance on import for the two key components of smart phones.

According to the “AP development program,” submitted by the MOEA to the Executive Yuan, in the next three years the MOEA, the National Science Council, and the Ministry of Education will jointly appropriate a budget of NT$1.94 billion for supporting the development of local AP industry, in the aspects of talent training, R&D, and manufacturing.

An official in charge noted that as a bastion for the global information-telecommunications technology industry, Taiwan missed the opportunity for developing CPU (central processing unit). Now, the nation should take advantage of the craze for smart phones to develop indigenous AP industry. At present, ARM of the U.K. is the world's largest AP producer.

MediaTek will play a critical role in developing localized AP production. It submitted its medium- and high-end AP development project to the MOEA in October and has reportedly formed a 100-member team for the project. The company is scheduled to roll out sample AP by the end of next year and cooperate with HTC, Taiwan's leading smart-phone maker, for the testing and commercialization of the component.