"Ericsson of Sweden plans to establish a research and development center in Taiwan.
"As the Swedish firm is one of the world's top three wireless communications companies, the plan is expected to help Taiwan move into the field of third-generation mobile communications.
"The Ericsson plan is the latest result of the efforts of the Ministry of Economic Affairs (MOEA) to secure Taiwan's position as the world's third-largest information hardware maker and to develop Taiwan's wireless communications industry. The ministry has been encouraging foreign companies to set up centers for R&D, design, distribution and quality control, and international procurement offices (IPOs) in Taiwan. In addition to Ericsson, Finland's Nokia and U.S.-based Motorola Inc. also are likely to establish R&D centers and IPOs in Taiwan.
"MOEA officials said Taiwan has become one of the world's top R&D centers for personal computer and wireless communications. Nokia already has an IPO in Taiwan. Solectrom and Celestica, the world's first- and third-ranked contract manufacturers for information products, respectively, also recently set up IPOs in Taiwan.
"The Industrial Development Bureau said Taiwan gradually has transformed itself into an R&D center for PCs, and this status is unlikely to be threatened in the next five years.
"MOEA has listed the mobile phone business as one of the three most promising industries in the future. Taiwan reported NT$3.26 billion in mobile phone business for 1999. The figure is expected to climb sharply to NT$25 billion this year, a rise of 666.9 percent. (NT$30.82 = US$1)