Taiwan intends to build silicon photonics hub in Kaohsiung

Taipei, Oct. 20 (CNA) Taiwan intends to build Kaohsiung into a national silicon photonics hub at a time when the country is gearing up to develop artificial intelligence, Yeh Chun-hsien (葉俊顯), head of the National Development Council (NDC), said Monday.

Speaking at a hearing of the Legislative Yuan's economics committee, Yeh said the Ministry of Economic Affairs (MOEA) is discussing the establishment of a silicon photonics hub in Taiwan, adding that to his knowledge the MOEA is, in principle, interested in developing such a center in Kaohsiung, southern Taiwan.

Yeh made the comments when answering question from Kaohsiung-elected lawmaker Lin Dai-hua (林岱樺) of the ruling Democratic Progress Party (DPP), who praised the city for its advantages in developing computing capabilities and as a good choice for a silicon photonics hub.

iPhone assembler and AI supplier Hon Hai Precision Industry Co., the world's largest contract electronics maker, is set to build a computing center in Kaohsiung.

With silicon photonics to replace copper with optical fibers, data can be transmitted faster, with less delay and using less power during the current AI era.

With the Executive Yuan pushing for AI development, silicon photonics, quantum computing and robotics among others have been designated critical technologies, according to a report submitted to the Legislative Yuan by the NDC, the top economic planning agency in Taiwan.

Earlier this year, the Cabinet approved a plan to estabish a local Silicon Valley in southern Taiwan, which will begin at Tainan's Shalun Smart Green Energy Science City and extend outward to the surrounding S-shaped semiconductor cluster, linking science parks and technology industrial parks in Chiayi, Tainan, Kaohsiung and Pingtung.

In Kaohsiung, Taiwan Semiconductor Manufacturing Co. (TSMC) is developing the advanced 2 nanometer process, slated to begin commercial production later this year. Another 2nm process development area for TSMC is Hsinchu in northern Taiwan.

Commenting on concerns raised by ruling Kuomintang (KMT) Legislator Hsieh Yi-fong (謝衣鳯) about the possible burst of the AI bubble, Yeh said that current AI development is different from the dot.com bubbles which finally popped without many end-users as the stock market crashed in early 2000s.

Yeh said with enterprises rushing to set up data centers in the initial stage, AI applications are gradually trickling down from the cloud to end users, referring to smartphones and notebook computers among many others.

According to the NDC, through government efforts to promote AI development, the technology is expected to create NT$7 trillion (US$228 million) in production value and 180,000 high-paying job openings in 2028, making Taiwan the 14th largest AI developer.

In 2040, production value is expected to top NT$15 trillion with 500,000 high-paying jobs created, making Taiwan the fifth largest AI developer, the NDC said.