-1- Dr. Chih-Kung Lee, President Institute for Information Industry The latest developments in the ICT sector: Innovation & Technology Convergence Symposium on the 15 th Anniversary of the Information Technology Agreement

Manufacturing-oriented Investment-oriented Innovation-oriented Labor-intensive stage Labor-intensive stage Capital-intensive stage Tchnology-intensive stage Tchnology-intensive stage Knowledge-intensive stage Knowledge-intensive stage 2000 Leading the development of high-tech industry Upgrading of industrial technology and international- ization Betting national resources into the livelihood Industry Betting national resources to improve agricultural techniques Promote large- scale national construction/Es tablishment of heavy chemical industry 2010(8.24f) Regional competitive industry GDP Growth Transformation of Taiwane Industry 2010 Financial Tsunami

-3- Evolution of Taiwan’s Economic Development The Transition of Taiwan’s Main Export Items Textile/ Toys/ Umbrella Metal products/ Bicycle Electronic parts/ IT products Semiconductor and TFT LCD ICT and related components The Transition of Taiwan’s Growth Driving Force Innovation - An enabling growth engine MFP* (29%) Capital (60%) Labor (11%) The change of contribution to economic growth MFP* (42.2%) Capital (40.2%) Labor (17.6%) * MFP: Multiple Factor Productivity Source ： DGBAS of Taiwan, CEPD of Taiwan, compiled by MIC, Mar

-4- ICT services 6.0% Services 4.8% Total ICT 4.7% Total business sector 4.2% Manufacturing 2.5% ICT Manufacturing. 1.0% ICT industry maturing, value-add varies by sector Growth of ICT sector and total value added in the OECD area, Index 1995 = 100, compound annual growth rate in current exchange rates (%) Source ： OECD Information Technology Outlook 2010 Highlights, Feb OECD countries with the largest shares of ICT manufacturing value added in total value added: Korea, Finland, Ireland, Japan, Hungary, Sweden, Slovak Republic, Germany, Czech Republic, United States and Mexico.

-5- Source ： OECD Information Technology Outlook 2010 Highlights, Feb OECD ICT trade more than doubled to USD 2.1 trillion and accounted for close to 7% of world merchandise trade but imports outpaced exports, and the OECD share of total ICT trade dropped from 71% in 1996 to 53% in The restructuring of global ICT trade Non-OECD countries

-6- BROADBAND Entertainment, E-Business, Services MEDIA Pre-Recorded Content Personal Media BROADCAST Services, Entertainment Any content, any place, any device, any time ITA could contribute the realization of the Digital Home Vision All computing devices communicate, All communication devices compute, All devices and content are going digital...

-7- Consumer Behavior Media & Entertain- ment Service Providers Consumer Electronics DIGITAL CONTENT ECOSYSTEM ITA also to establish the Digital Content Ecosystem Increasingly complex industry dynamics in media distribution

-8- ICT’s Stimulating Smart Living Applications Winner of

-9- Taiwan’s 2nd largest prestigious Chinese fast food brand: Formosa Chang. Design "diverse service model for whole-process refrigeration chain" and "whole-process refrigeration temperature tracing mechanism featuring at least 30% energy saving, using the refrigeration technology to enhance the flavor of food. Case: Cross-logistics Food Cool Chain Seek to create added value for the traditional industries and expand the application of cross-logistics refrigeration chain, so as to make for the participation of more food service providers and establish an innovative industry chain featuring delicious food and low carbon emissions. Value

-10- Case: Cross-logistics Food Cool Chain Innovative Multi-mode Business Model

-11- Conclusion

-12- Global ICT makers’ capabilities extend from manufacturing to product concept, product design and services. As smart, convergence, mobility and personalization are key trends in the global ICT industry, global ICT makers have developed the necessary capabilities to deal with these trends and have expanded their operations accordingly. Thanks to the 15 year contribution of the ITA, follow the footsteps of progress of technologies, the need for expand product coverage and encourage more participants to join is apparent and urgent. Liberating ICT products, accelerate to prosperity

-13- Thank you