Taiwanese IT Makers Doubt Intel's Commitment to WiMAX

Taipei, July 16, 2010 (CENS)--J.T. Wang, chairman of Taipei Computer Association (TCA) and Acer Inc., expressed grave concern over the commitment of Intel to pushing WiMAX service, a fourth-generation wireless communications technology, yesterday (July 15), urging Paul Otellini, president and chief executive officer of Intel, to come to Taiwan for clarifying its stance in October.

Wang's statement was contained in a news release issued by the TCA, in response to a report that Intel has dismantled its WiMAX Program Office (WPO), which is in charge of its global WiMAX initiative. The move has triggered grave concern among Taiwanese IT firms, many of which have followed Intel's lead and invested heavily in the technology.

The move has also upset the government seriously, which has been cooperating closely with Intel in pushing investments in WiMAX technology. The Taiwanese government and industries have reportedly requested Intel to make three commitments, including transference of patented WiMAX technology and IOT (interoperability test) solution to Taiwan, signing of a letter of intent for cooperation with Taiwan, and maintenance of its Asia-Pacific WiMAX office or institution of a new unit dedicated to WiMAX business.

Since 2005, Intel has signed two memorandums of understanding on cooperation with the Ministry of Economic Affairs (MOEA) pledging to spend US$500 million on WiMAX-related investments and procurement in Taiwan, on top of the setup of a system integration company, to tap the emerging global WiMAX market. In a previous visit to Taiwan, Otellini also pledged to President Ma Ying-jeou that Intel will help Taiwan develop into a global mobile computing base. However, so far Intel has only invested NT$386 million in VMAX, a WiMAX service provider.

Industry insiders noted that the retreat from the WiMAX camp will jeopardize the trust of Taiwan in its long-standing cooperative link with Intel. Huang Chung-chiu, vice economics minister, however, noted that even if Intel decides to quit, the Taiwanese WiMAX industry will remain intact, since it has established a complete supply chain.