5G holds the potential to unleash $134 billion in gross output of goods and services in Taiwan and support 510,000 jobs in 2035 in the country, according to a research conducted by IHS Markit for Qualcomm.
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 ICT sector, to move beyond its traditional role by focusing on additional areas higher up in the value chain.
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.
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.
Jim Cathey, SVP an President of APAC and India, Qualcomm
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.
Jim Diffley, VP of IHS Markit
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.
