Qualcomm Incorporated (NASDAQ: QCOM) announced that its subsidiary, Qualcomm Technologies, Inc., has released additional findings of a landmark study, The 5G Economy. The new research, conducted by leading industry and economic analysis firm IHS Markit, examines the potential economic impact of 5G for the Taiwan market.
IHS Markit research indicates that 5G represents an outstanding opportunity for Taiwan, currently the major supplier of component, semiconductor and contract manufacturing services to the Information and Telecommunications Technology (ICT) sector, to move beyond its traditional role by focusing on additional areas higher up in the value chain.
Under the existing industrial structure and policy environment, 5G holds the potential to unleash $134 billion in gross output of goods and services and support 510,000 Taiwanese jobs in 2035, according to IHS Markit. Taiwan is well positioned to play a vital role in the emerging global 5G supply chain and many Taiwanese firms are investing in 5G, particularly in applications built for Massive IoT (MIoT). However, the study found Taiwan will need policies that encourage innovation and investment in higher-value aspects of the 5G value chain to stimulate additional output and employment.
“These respected researchers confirmed our strong belief that 5G will be a fundamental game changer,” said Jim Cathey, senior vice president and president of Asia Pacific and India, Qualcomm International, Inc. “The ‘5G Economy’ study also reinforces our confidence in the tremendous opportunity for further collaborations with the mobile ecosystem in Taiwan. Together with our Taiwanese partners we will continue accelerate and drive the future of 5G technology in IoT, mobile and compute, enabling Taiwan to access the global economic benefits of 5G.”
“As a regional technology hub, Taiwan has played an important role in the spread of mobile technologies globally in recent decades,” said Jim Diffley, vice president of IHS Markit and chief economist of IHS U.S. Regional Services Group. “The $134 billion in 5G-related gross output that Taiwan will directly and indirectly support by 2035 indicates that Taiwan has the opportunity to pursue economic growth strategies that are consistent with its Asia Silicon Valley Development Plan”.
These new findings on 5G’s economic impact on Taiwan are an expansion of the landmark ‘5G Economy’ global research study announced by Qualcomm in January 2017 and can be found here: https://www.qualcomm.com.tw/invention/5g
Landmark ‘5G Economy’ Global Research Study
‘The 5G Economy’ global research, announced by Qualcomm in January 2017, includes an economic impact study conducted by IHS Markit and validated by Professor Dr. David Teece, director of the Tusher Center at the Haas School of Business, U.C. California, and principal executive officer of the Berkeley Research Group (BRG), as well as opinion research on the expectations for 5G among business and technology leaders carried out by PSB. The combined findings of the study show how 5G will profoundly affect the global economy and that business decision makers in technology and other industries overwhelmingly believe in the transformational nature of 5G.
Notably, the study indicates that 5G will catapult mobile into the exclusive realm of General Purpose Technologies such as electricity, which have throughout history provided the foundation for massive innovation, giving rise to new industries and transforming entire economies. This mobile-enabled transformation will take place as 5G advances mobile from a set of technologies connecting people to people and information – to a unified fabric connecting people to everything.
Economic Growth Foreseen
According to the global study, in 2035, when 5G’s full economic benefit should be realized across the globe, a broad range of industries – from retail to education, transportation to entertainment, and everything in between – could produce up to $12.3 trillion worth of goods and services enabled by 5G. The 5G value chain itself is seen as generating up to $3.5 trillion in revenue in 2035, supporting as many as 22 million jobs.
Over time, 5G will boost real global GDP growth by $3 trillion dollars cumulatively from 2020 to 2035, roughly the equivalent of adding an economy the size of India to the world in today’s dollars.
Complementing the economic study, polling research conducted by PSB confirms that business decision makers and opinion leaders around the globe expect 5G to bring widespread benefits for society and the overall economy, opening up new growth avenues for products and services, increasing productivity and enabling new industries to emerge. Over 90 percent of the more than 3,500 respondents agreed that 5G will enable new products, services and use cases that have not been invented yet.