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The 5+2 Industrial Transformation Plan 「五加二」產業創新計畫 May 2017 | Vol. 47 | Issue 5 THE AMERICAN CHAMBER OF COMMERCE IN TAIPEI IN OF COMMERCE THE AMERICAN CHAMBER The 5+2 Industrial Transformation Plan 「五加二」產業創新計畫 TAIWAN BUSINESS TOPICS TAIWAN May 2017 | Vol. 47 | Issue 5 Vol. 2017 | May 中 華 郵 政 北 台 字 第 INDUSTRY FOCUS TRANSPORTATION LIFE IN TAIWAN 5000 號 執 照 登 記 為 雜 誌 交2017 寄 UNIVERSIADE ISSUE SPONSOR Published by the American Chamber Of Read TOPICS Online at topics.amcham.com.tw NT$150 Commerce In Taipei 5_2017_Cover.indd 1 2017/5/3 11:04:27 PM CONTENTS NEWS AND VIEWS 6 Editorial MAY 2016 VOLUME 47, NUMBER 5 An Unlikely Opportunity 一○六年五月號 意想不到的機會 8 Taiwan Briefs Publisher 發行人 By Timothy Ferry Andrea Wu 吳王小珍 Editor-in-Chief 總編輯 12 Issues Don Shapiro 沙蕩 Nuclear Freeze vs. Carbon Abatement; Associate Editor 副主編 Regulating the Workplace Tim Ferry 法緹姆 Art Director/ 美術主任/ 凍核減碳；勞動規範 Production Coordinator 後製統籌 By Timothy Ferry and Don Shapiro Katia Chen 陳國梅 Manager, Publications Sales & Marketing 廣告行銷經理 Caroline Lee 李佳紋 COVER SECTION Translation 翻譯 Jay Chen, Yichun Chen, Charlize Hung 陳正杰, 陳宜君, 洪兆怡 15 The 5+2 Industrial Innovation Plan American Chamber of Commerce in Taipei 「五加二」產業創新計畫 129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan P.O. Box 17-277, Taipei, 10419 Taiwan The Tsai administration is making a heavy Tel: 2718-8226 Fax: 2718-8182 e-mail: [email protected] commitment of resources to promot- website: http://www.amcham.com.tw ing seven sectors of the economy as the 名稱：台北市美國商會工商雜誌 發行所：台北市美國商會 key to transforming Taiwan’s industry. 臺北市10596民生東路三段129號七樓706室 The initial five “pillar industries” were 電話：2718-8226 傳真：2718-8182 the Internet of Things (also referred to Taiwan Business TOPICS is a publication of the American Chamber of Commerce in Taipei, ROC. Contents are independent of and do not as Asia·Silicon Valley), Biomedical, Green necessarily reflect the views of the Officers, Board of Governors, Supervisors or members. Energy, Smart Machinery, and Defense. © Copyright 2017 by the American Chamber of Commerce in Taipei, ROC. All rights reserved. Permission to reprint original material must Added later were high-value agriculture be requested in writing from AmCham. Production done in-house, Printing by Farn Mei Printing Co., Ltd. and the circular economy. The govern- 登記字號：台誌第一零九六九號 ment is counting on the program to spur 印刷所：帆美印刷股份有限公司 Low-carbon Future 經銷商：台灣英文雜誌社 台北市108台北市萬華區長沙街二段66號 innovation, create well-paid job opportu- 發行日期：中華民國一○六年五月 中華郵政北台字第 號執照登記為雜誌交寄 24 Rise of the (Smart) 5000 nities, and bring more balanced regional ISSN 1818-1961 development to Taiwan. Machines By Timothy Ferry with additional reporting by 24 Defense Industry Focus Chairman/ Albert Chang Vice Chairmen/ Dan Silver / Daniel Tseng Philip Liu on Fighter-trainers and Secretary: Vincent Shih Treasurer: Al Chang 21 Asia·Silicon Valley – Don’t Forget Submarines 2016-2017 Governors: Al Chang, Christine Jih, Annie Lee, the Dot! 25 Developing High-value, Edward Shober, Dan Silver, Joanne Tsai, Daniel Tseng, Neil Waters. 22 Biomedical and Taiwan’s Aging Innovative Agriculture 2017-2018 Governors: Population 26 Saving Resources with a Sammy Carolus, Albert Chang, Tim Ju, Seraphim Ma, Rodney Morgan, Vincent Shih, Leo Seewald. 23 Green Energy for a Nuclear-free, Circular Economy 2017 Supervisors: Anita Chen, Nadia Chen, Nick Chen, Bimal Kapoor, Shenoy Raghavendra. COMMITTEES: Agro-Chemical/ Melody Wang; Asset Management/ Christine BACKGROUNDER Jih, Derek Yung; Banking/ Victor Kuan; Capital Markets/ Mandy Huang, C.P. Liu; Chemical Manufacturers/ Charles 27 Taiwan Looks Southward Liang, Michael Wong; Cosmetics/ Shirley Chen, Julien Jacquet, Abigail Lin; CSR/ Lume Liao, Fupei Wang; Energy/ The government is seeking to Tina Chen, C.W. Chin; Greater China Business/ Helen Chou; strengthen trade, investment, tourism, Human Resources/ Vickie Chen, Richard Lin, Monica Han, Seraphim Ma; Infrastructure/ Paul Lee; Insurance/ Paul Low, education, and cultural relations with Dan Ting, Linda Tsou; Intellectual Property & Licensing/ Jason Chen, Peter Dernbach, Jeffrey Harris, Vincent Shih; South and Southeast Asia. Marketing & Distribution/ Wei Hsiang, Gordon Stewart; Medical Devices/ Terry Lin, Raghavendra Shenoy, Joanne By Jane Rickards Yao; Pharmaceutical/ David Lin; Private Equity/ William Bryson; Public Health/ Dennis Lin; Real Estate/ Tony Chao; Retail/ Ceasar Chen, Mark Chen, Prudence Jang; Sustainable Development/ Kenny Jeng, Cosmas Lu, Kernel Wang; Tax/ TAIWAN BUSINESS Stella Lai/ Cheli Liaw, Josephine Peng; Technology/ Revital Golan, Connie Wang; Telecommunications & Media/ Thomas Ee, Joanne Tsai; Transportation & Logistics/ Nick Chen; 41 What Competence do Taiwan Talents Need for Good Jobs? Travel & Tourism/ Anita Chen, Pauline Leung, Achim v. Hake. By William Zyzo 4 taiwan business topics • may 2017 5 Contents.indd 4 2017/5/4 12:17:37 AM may 2017 • Volume 47 number 5 COVER SPONSOR INDUSTRY Serving the Public with Innovative Technology F CUS A Report on the Transportation Sector Airline and Airport Ups and Downs By Matthew Fulco 32 Is Shutting Down Songshan Airport a Flight of Fancy? Given the downtown airport’s ownership structure and importance in serving Tai- Microsoft is the worldwide leader in software, services, devices, and wan’s outlying islands, closing it would be solutions that help people and business enterprises realize their full problematic. potential. At our core, Microsoft is the productivity and platform com- 35 Hengchun Airport Longs to Get pany for the mobile-first and cloud-first world. We reinvent productiv- Flights Off the Ground ity to empower every person and every organization on the planet to The central government has given Ken- achieve more. ting’s only airport one final chance to prove its viability. Microsoft Taiwan Corporation was established in 1989, and in the more 36 Will Taichung’s Airport be Expanded? than two decades since then, we have demonstrated our firm commit- Local authorities are pressing for Ching ment to being a responsible local industry partner as well as perform Chuan Kang to be upgraded to interna- our corporate social responsibility. tional airport status. 38 The Collapse of TransAsia As a company, and for our employees as individuals, we value integrity, Airways honesty, openness, personal excellence, constructive self-criticism, con- Behind the two crashes that sank the com- pany were some critical business mistakes. tinual self-improvement, and mutual respect. We are committed to our 40 Uber’s on the Road Again customers and partners and have a passion for technology. We take on The ride-hailing app is now partnering big challenges, and pride ourselves on seeing them through. We hold with licensed car-rental companies in ourselves accountable to our customers, shareholders, partners, and Taiwan. employees by honoring our commitments, providing results, and striv- ing for the highest quality. LIFE IN TAIWAN 46 Taipei Preparing for its Technology is a powerful force for improving people's lives. But right Universiade Moment now, half the world does not have access to the benefits and opportuni- The 12-day competition in August will ties that technology offers. Microsoft Philanthropies are committed to be largest sporting event ever hosted in Taiwan. doing more globally to bring the benefits of technology to the people By Chris Horton and organizations who need them most. Together with our grantees, partners and employees around the world, we’re working to fulfill Microsoft’s mission to serving the public good through innovative tech- taiwan business topics • may 2017 5 nologies and partnerships. 5 Contents.indd 5 2017/5/4 12:17:40 AM E D I T O R I A L An Unlikely Opportunity mong the flurry of executive orders signed by U.S. Pres- includes Taiwan, whose surplus last year as calculated by the U.S. ident Donald Trump since taking office was one issued government came to US$13.3 billion. AMarch 31 aimed at reducing the American trade deficit At first glance, inclusion anywhere on the list might be viewed with countries with which the United States runs a significant as a less-than-welcome source of U.S. pressure to make conces- trade imbalance. The order assigns the Secretary of Commerce sions on trade issues. But for Taiwan the spotlight could turn and Office of the U.S. Trade Representative (USTR) – in consulta- out to be an opportunity. Unlike the other major trading part- tion with other U.S. government departments including Treasury ners, Taiwan lacks formal diplomatic relations with the United and Agriculture – to examine, country by country, the degree to States, which keeps Taiwan from receiving as much attention by which bilateral trade deficits are caused by “tariffs, non-tariff U.S. officials as it deserves. High-level government-to-government barriers, injurious dumping, injurious government subsidiza- contacts are severely restricted. tion, intellectual property theft, forced technology transfer, denial At the same time, Taiwan badly needs U.S. support to avoid of worker rights and labor standards, and any other form of marginalization in the international economic arena as rival econ- discrimination against the commerce of the United States.” omies enter into more and more bilateral and multilateral trade The Secretary of Commerce and USTR are then instructed agreements. The dim outlook for the Trans-Pacific Partnership to submit a report on their findings before June 29, providing trade pact following the Trump administration’s withdrawal has the administration with what Commerce Secretary Wilbur Ross dashed Taiwan’s hopes of joining the TPP in a second round, refers to as the “hard facts, not theories” on which to base trade- leading Taiwan to turn its attention to the possibility of a bilateral policy decision-making. Although the appointment of USTR- trade or investment agreement with the United States. designate Robert Lighthizer is still awaiting Senate confirmation, The trade imbalance review over the coming months will at Ross is reported to be energetically taking up his assignment least ensure that Taiwan is on U.S.
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