From horse-drawn carriages to steam power, to eventually the internal combustion engine, which, for the following hundred-plus years, become the main means to power transportation. Now, thanks to scientific and technological development, as well as due to the greenhouse effect and climate change, a new revolution in human movement is well under way. This revolution is not just a transition away from internal combustion engines and towards batteries and motors, but also a fundamental transformation of how we operate the vehicles we have grown accustomed to over the past hundred years.

This is all thanks to the burgeoning development of digital technology. Through technologies like machine learning, artificial intelligence, 5G broadband, and decentralized networks, intelligent transportation systems—that as of now can only be seen in science fiction films—may become a reality over the next 10 or 20 years. In the midst of this transformation, Taiwan finds itself in an advantageous position as it prepares to move into the future.

Jack Cheng: Igniting a revolution in the automotive industry.

Taiwan’s automotive industry has had several opportunities to stand out on the international stage, but unfortunately, no multinational auto group involving Taiwan ever emerged in the end. As the electrification era approaches, the MIH Consortium, as led by Foxconn, has cemented its place in the electric vehicle market over a short period of time with astonishing momentum. Its secret? Openness.

MIH CEO Jack Cheng stated: “We have learned a lot from past experiences. The concept of reference designs from computer and mobile phones has helped MIH become an open platform where functions can be easily developed onto and replaced with custom designs. From a cultural perspective, large multinational auto groups have a much slower response than MIH, so we have great flexibility in our development. At the same time, our ability to attract young people is also a big strength.”

Many of the world’s top-ranked automotive groups have accumulated copious resources and invested heavily in research and development. However, MIH is not competing for industrial strength, but rather for customers to understand its systems. “Apple is a good example of letting user experience lead product development, as opposed to Nokia, which let technology take the reins, leading to a vastly different outcome,” Cheng added.

The MIH platform currently has numerous partners, proving that an open electric vehicle ecosystem is not only feasible, but may even be an opportunity for a new revolution in Taiwan’s auto industry. At this critical moment, what role should the government play? Cheng had this to say: “The government has always provided quite a bit of assistance, but it can continue to introduce strong policies that encourage new startups and provide a nurturing environment conducive to entrepreneurship that results in the creation of more valuable ideas.”

Wu Meng-Fen: Taiwan leads the world

Established 21 years ago, the Intelligent Transportation Society of Taiwan (ITS) is a non-governmental organization that has worked closely with industry, government, and academia in its tireless promotion of intelligent transportation. Wu Meng-Fen, a convener for ITS as well as chairman of the Taiwan Telematics Industry Association, said that Taiwan has a smart transportation project that has brought shockwaves throughout the world: ETC.

“In this category of applied technologies, Taiwan’s ETC (electronic toll collection) is the world’s first multi-lane free flow system that uses overhead gantries to detect vehicle eTags and calculate distance traveled to collect tolls. Not only does this allow for equality in terms of road use, but without toll booths, vehicles no longer need to slow down and accelerate, which helps with carbon reduction and environmental protection,” Wu Meng-Fen said. In addition to ETC’s impressive technology, it also has great significance in terms of policy and industrial cooperation.

Following the lead of government policies to introduce private resources and further foster industrial development, PPP (public-private-partnership) promotes private-sector involvement in public construction. Of the many ways to promote PPP participation, the BOT (build-operate-transfer) model is just one. Wu explained, “The entire infrastructure of the ETC system, including detection equipment, is built by a single company. Vehicle tolls are still collected by the government, but the company charges a certain percentage of handling fees. This way, the government does not need to invest large amounts of money but can work with industry to complete infrastructure construction.”

The development of the Internet of Vehicles industry, an indispensable part of smart transportation, requires assistance from private industry in the form of PPP to accelerate hardware construction. This process also helps support the industrial chain. “What the government has to do is help formulate industry standards, provide experiment sites, set service and business mechanism certifications, and use policies to allow industry to assist the government in providing quality services,” Wu elaborated.

Eugene Chien: Don’t use outdated thinking when planning for the future

Eugene Chien, chairman of the Telecommunications & Transportation Foundation—and also the first Minister of the Environmental Protection Administration (R.O.C), Minister of Transportation and Communications, Representative of the Taipei Representative Office in the United Kingdom, and Minister of Foreign Affairs—is dedicated to low-carbon sustainability and boasts transportation expertise along with an international vision. He believes that smart transportation is the future and can help Taiwan solve many problems that has plagued the country for some time while further realizing ideals of sustainable transportation.

“Sustainable transportation is definitely a major focus of future development. Controlling carbon emissions has become a common global trend. If Taiwan wants to reach carbon neutrality by 2050, its current rate of progress is too slow. Developing smart transportation is a great way to accelerate carbon reduction. Providing better methods for commuting, streamlining routes to reduce fuel consumption, and even promoting work-from-home model and distance learning to reduce commuting demand can all be incorporated into smart transportation,” Chien elaborated.

In terms of smart transportation development, Taiwan has many advantages such as information and communication technology, strong mobility, the government’s public big data on transportation, strong economy, and abundant human resources. At this point, all countries are on the same starting point, when it comes to exploring smart transportation and what transportation might look like in the future, which is a great opportunity for Taiwan. Chien went on to say, “We need to put aside old ways of thinking. In addition to changing the means of transportation, we also need to think about the purpose of transportation to then reduce or even get rid of certain physical movement.”

Taiwan to become an island of smart transportation

The development of smart transportation cannot rely on a single enterprise. It requires joint investment from multiple fields. Taiwan has the manufacturing capabilities to make key components for electric vehicles, a talented workforce with a creative and international vision, the world’s leading semiconductor industry, a solid economic foundation, and certain information and communication technology advantages. This gives Taiwan the chance to not only take part in the electrification movement, but also to become a leader in the future smart transportation revolution and eventually live up to its reputation as the island of smart transportation.

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