Chunghwa Telecom (CHT) continues to nurture startups by investing in 5G accelerators and innovation competitions.
Chairman Shui-Yi Kuo recently revealed plans to promote investments in promising startups in Taiwan and Southeast Asia through the "Southeast Asia Technology Fund." CHT aims to drive new growth opportunities by nurturing startups and collaborating with them.
Since its privatization, CHT has made significant investments in startups and IPOs. It has spun off companies such as Chunghwa Precision Test Technology (CHPT) and invested in firms such as Chief Telecom, Kingwaytek Technology, KKBOX, Senao International, and others.
In 2023, CHPT achieved NT$2.884 billion in revenue, driven by the AI trend boosting its probe card business. The IDC operator of Chief Telecom also reported an annual revenue of NT$3.24 billion in 2023 and operates Taiwan's largest internet exchange center, TPIX. These companies significantly contribute to CHT's revenue and growth.
The Southeast Asia Technology Fund, led by Taiwania Capital with CHT playing a crucial role, has planned a fund in the ballpark of NT$3 billion. CHT will contribute 30% and seek out additional partners.
CHT chairman Shui-Yi Kuo emphasized the challenges of nurturing unicorns in Taiwan due to the small domestic market compared to the global market. He stressed the importance of helping startups bring their innovations to international markets, as successful global unicorns have done.
CHT promotes startup incubation through three approaches: "Apply," "Business," and "Cooperation." "Apply" involves providing funding and acquiring equity stakes. "Business" offers commercial cooperation by connecting startups with CHT's existing customers and venues, offering innovative applications to corporate and individual clients.
"Cooperation" focuses on leveraging technological innovation discovered through competition. Startups with strong technical expertise often need funding and talent to commercialize their ideas. Chunghwa Telecom acts as a platform, combining various resources to lift their innovations to the global market.
Kuo reflects on the past, noting that by merging with CHT and positioning itself as a neutral IDC, Chief Telecom overcame struggles in operations and thrived.
Despite KKBOX's parent company KKCompany's recent unsuccessful IPO, Kuo believes that legitimate licensing, subscription models, and music streaming are valuable innovations, that have received investments from Japanese telecom operators as well. CHT will continue to support KKBOX's creative efforts, endeavoring to compete with Apple Music and Spotify.
Chunghwa Telecom has a history of successful IPOs, many of which are led by Kuo, including Chief Telecom and CHPT. The company is currently planning IPOs for CHT Security and IISI, among others.
