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Start-ups key as Taiwan seeks new tech identity
By Laura MANNERING, Benjamin YEH
Taipei (AFP) June 2, 2015


New urban landscape at Taiwan's Computex
Taipei (AFP) June 2, 2015 - An improved urban landscape with safer driving, quick payment systems and pollution alerts was laid out at Asia's biggest tech trade fair Tuesday.

Computex, held in the capital Taipei, is in its 35th year with 1,700 exhibitors spread across three sprawling venues, many of whom are tapping into the nascent but burgeoning Internet of Things (IoT).

Already a major force, IoT -- in which connected devices monitor, communicate with and control each other -- is driving the smart living concept.

Market intelligence firm IDC estimates that by 2016 the value of the IoT market will reach $2.6 trillion.

US carmaker Ford was showing its new hybrid Mondeo which will launch in Taiwan before the rest of Asia-Pacific and offers assisted parking and autonomous braking designed to prevent collisions with cars or pedestrians.

The firm was also promoting its Smart Mobility initiative, where cars communicate with each other to reduce congestion.

"We're trying to solve mobility issues for the future," said Shawn Huang, communications manager for Ford in Taiwan.

"Taiwan's a small market but, compared with China, it's a more mature market for launching new energy vehicles," he added.

With pollution an increasing concern particularly in some Asian cities, Taiwan-based Sunix was showing a prototype sensor to monitor levels of PM2.5 -- damaging particles in the air -- which sends an alert to carriers' mobile phones when readings are dangerous.

The firm also showed its IoLife system, which connects homes, appliances and mobile phones.

"When away from home you can use your mobile phone to turn on the lights when it's dark, or be notified if a door or window is opened, or if there is movement inside your home," said Sammy Tseng, assistant global sales director.

Other displays highlighted the use of near-field communication (NFC), allowing smartphones and other devices to communicate via radio by bringing them within centimetres of each other -- so phones can swipe payments.

Computex comes on the heels of last month's inaugural CES Asia tech show in Shanghai, with Taiwan under increasing pressure from rival China as it pushes forward in the tech sector, from producing its own mobile handsets to manufacturing chips.

But industry observers say the island still has a key role to play.

"Taiwan's capabilities are blended with new global smart hardware innovations and taken to world markets," said Lucas Wang, CEO of Taipei-based advisory platform HWTrek, who added that even popular Chinese phone maker Xiaomi uses products built by Taiwanese original design manufacturers.

However, innovations from China that fit the needs and preferences of local consumers are growing fast, he said.

"More creation will be nurtured from there in the near future."

As the Computex trade show opens its doors Tuesday in Taiwan it is putting a new focus on start-ups to boost the island's tech credentials in the face of intense competition from rival China.

Taiwan has hosted Asia's biggest tech trade show for 35 years and made its name as a hub of innovation and engineering in the age of the PC, manufacturing components and assembling computers.

More recently it has benefited from Apple's new iPhone6, launched last year, with a number of leading Taiwanese firms such as Foxconn and TSMC reportedly among Apple's suppliers.

The island is also one of the world's biggest suppliers of semi-conductors and is home to well-known industry players, from computer maker Asus to smartphone brand HTC.

But as China pushes to grow its own tech industry with the development of domestic smartphone brands and homegrown hardware, including chips, Taiwan is looking to smaller niche firms with new ideas.

Nine start-ups which Computex organisers say have potential to tap international markets will be given a special exhibition area at the show this year for the first time in a bid to raise their profile.

"We have to turn to a new direction, with more innovation, rather than mass manufacturing," says Li Chang, deputy secretary general of Taipei Computer Association (TCA), co-organiser of Computex.

He called on the government to do more to support fledgling firms.

"There might be a number of young people who have creative ideas and can manage to turn them into innovative products, but... they face difficulties in raising capital and marketing," says Li.

- Global push -

New Taiwanese firm Mozbii, one of the nine start-ups selected, last year raised US$45,000 through crowdfunding site Kickstarter for what it bills as the "world's first colour picking stylus" -- a hi-tech version of colouring in.

A round sensor at one end of the stylus captures the colour of any object it is pressed upon.

The stylus then replicates that colour when touched on a tablet screen, so children can fill in templates or draw their own creations.

"We have an environment here to develop things and the government is starting to sense the importance of supporting start-ups," says Mozbii CEO Jeremy Shu, who leads a team of eight.

"But pushing the product to the world is difficult."

Shu says there needs to be a public "incubator" to help entrepreneurs with development and marketing.

"Start-ups are growing, but at a slow pace," he says.

Mozbii's stylus is already on sale in Taiwan and will be going to Japan and China this year.

At the other end of the scale, Asus crams in hundreds of international visitors to its Computex product launches, complete with theatrical film clips, booming soundtracks and catwalk models.

As it seeks to diversify away from PCs, Asus unveiled its new ZenPad tablet and Zenphone Selfie Monday -- which includes a "beautification mode" to even out skin tone.

But the number of Taiwanese brands with global traction remains limited, says Ralph Wiegmann, CEO of Hanover-based iF International Forum Design, which helps organise the Computex design and innovation awards.

Wiegmann says that companies both new and old now need to develop long-term branding strategies.

"Taiwan is a strong innovator, technology (here) has always been good.

"It's branding that's the major challenge -- it's a long-term issue and for many Taiwanese and Asian entrepreneurs long-term strategy is new."

Despite the hurdles, Wiegmann says the ever-expanding tech industry is providing new avenues for smaller firms and start-ups, with an increasing number competing for the design and innovation awards.

"It's still not easy for them, but they find their niche."


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