Taiwan is trying to reassure investors and the public that there is a long-term future for WiMax, after news broke last month that Intel had disbanded its Taiwan-based WiMax programme office.
Intel tried to reassure the market by saying the move, which integrated the Taiwan office’s resources into Intel’s other units, was part of “a normal process that takes place as new technologies mature” and that it remains a strong supporter of WiMax. However, the move has drawn the ire of Taiwan’s WiMax companies. For Taiwan, one of the most active proponents of WiMax, whether there is a future for the technology is more than just a technical matter – much of the world’s supply of WiMax chips, peripheral equipment and routers are made by Taiwanese companies. Taiwanese companies make about 80 per cent of the world’s WiMax devices, with shipments expected to more than double from 3.1m devices last year to 8.9m this year, according to the Ministry of Economic Affairs. Taiwan’s government has also been one of the biggest promoters of WiMax, having invested hundreds of millions into promoting and developing the technology. Some WiMax operators estimate the investment could be as high as $200m, although the government has declined to confirm this figure. Taiwan has also one of the most aggressive countries in encouraging the building of WiMax networks by granting six licences in 2007. JT Wang, chairman of Acer, used his role as head of the Taipei Computer Association to issue a statement saying he was “seriously concerned” about Intel’s decision. “From Intel’s perspective, they may think that if they cannot grab 80 or 90 per cent of market share, then they are not in the mainstream market and so they would not be interested in this field. But even if WiMax can claim 20 to 25 per cent of the global wireless market, do you know how big that market is,” he said.