VIA, Skycloud to Jointly Venture Into Cloud Computing

Taipei, Dec. 17, 2010 (CENS)--VIA Technology Inc. and Skycloud Technology (China) Inc. will set up a joint venture in March in 2011 to develop and manufacture cloud-computing equipment for end users, according to Skycloud Chairman Tian Sounin.

Tian yesterday said that the joint venture will begin to produce cloud-computing equipment after making tablet PCs in the initial stage. The joint venture, he added, will be the first manufacturer of cloud computing equipment co-founded by industries on the two sides of the Taiwan Straits.

Tian noted that mainland China has included cloud-computing development in its 12th Five-Year Plan, setting to push for one mega cloud computing plan each in Beijing, Shanghai, Shenzhen, Wuxi and Nanjing in five years.

Of the five mega programs, the one for Beijing will cost at least RMB50 billion (US$7.5 billion at US$1:RMB6.6) in investment and create an industry revenue four times the investment costs. The one for Shanghai is also expected to create revenue the same size of the Beijing plan.

According to executives of Chunghwa Telecom Co., Ltd., the mainland's top three telecom carriers—China Telecom, China Mobile and China Unicom—will also start their own cloud-computing programs.

Industry executives estimated the mainland's cloud-computing programs will create an estimated RMB1 trillion (US$151 billion) of revenue in five years.

Tian, who is attending a forum held in Taiwan, said that cross-strait cooperation on cloud-computing business will mostly benefit Taiwan's industries as the island has developed sound supply chains for semiconductor design, manufacturing, packaging and test, cloud-computing equipment and severs while the mainland has huge market.

Taiwan's Ministry of Economic Affairs estimated global revenue in cloud-computing industry will reach US$409.6 billion in 2012 and Taiwan has designed cloud computing as next NT$1 trillion (US$33 billion at US$1:NT$30) industry.