Promoting Taiwan-Japan Industrial Cooperation, Stan Shih Advocates for Mutual Value Creation through WangDao

The founder of the Acer Group, Stan Shih delivered a speech on June 21 in the University of Tokyo to promote cooperation and exchanges in the high-tech industries between Taiwan and Japan. In his speech, Mr. Shih stated the cooperation between Taiwan and Japan should start from the WangDao philosophy and cooperate together to generate value. To leverage the new opportunities made possible by the industrial paradigm shift towards a vertical division of labor, it is important to play the role of virtual vertical integrator and become a key player in the global AI supply chain.

National Yang Ming Chiao Tung University, Himalaya VC Management Corp, and the Innovation Platform for the University of Tokyo (UTokyoIPC) held a forum in the University of Tokyo Hongo Campus on June 21. The event specifically invited Mr. Stan Shih to deliver a keynote speech titled “Global Entreprenurship – Master New Opportunities by WangDao” to share his insights on Taiwan’s high-tech industry development and Acer’s experience in 3x reinvention with the Japanese industry.

Mr. Shih further added that it is important to start from the Wangdao philosophy to promote Taiwan-Japan industrial cooperation. The Wangdao philosophy is a way of leadership with 3 core beliefs: Value Creation, Balance of Interests, and Sustainable Development. He also emphasized that from the Wangdao philosophy perspective, it is important to include the General Theory of Hexa-Aspect Values in value creation. This means in addition to the visible values of tangible, direct, and present; the invisible values of intangible, indirect, and future are also equally important.

He also pointed out that while the Japanese industry has applied the vertical integration model since the 1980s to achieve Japan’s “Top of the World” goal and build its international reputation. Companies that have started their paradigm shift of vertical division of labor in Taiwan include Acer in the personal computer industry and TSMC in the semiconductor industry.

Acer launched its own brand PC in 1983 and incorporated OEM manufacturing, while TSMC launched their innovative professional wafer foundry business model in 1987. An article published in 1991 at Harvard Business Review mentioned that the industrial paradigm shift including “Computer Companies that do not make Computers” and “Semiconductor Companies that do not have fabs” will become mainstream in the future.

Mr. Shih stated that after 20 years of development in the computer industry, this trend has become the norm; while the development is still in progress in the semiconductor industry after 30 years. Today, fabless semiconductor companies generally perform better than companies with fabs.

Regarding the new opportunities for further cooperation between Taiwan and Japan, Mr. Shih also pointed out that the global division of labor in the industry provided competitive advantages in various aspects such as innovation, speed, flexibility, and cost. From a market perspective, the supply chain will need someone to someone to integrate and serve as the “virtual vertical integrator”. In the future, Taiwan and Japan can play this key role and contribute to the global AI supply chain.

Mr. Shih said that from Acer’s experience in the industry has shown how the intangible contributions are more important than the tangible. The international image of “Made in Taiwan” and “Made by Taiwan” has been greatly enhanced through the popularity of Acer’s global brand that continues to lead and promote the development of Taiwan’s high-tech industry value chain. In the process, Acer has also cultivated many outstanding talents for both Taiwan’s ICT industry and government.

Mr. Shih also reminded that in the process of paradigm shift from vertical integration to vertical division of labor, companies must understand that they are only as strong as their weakest link. As such, every division of labor link in the supply chain must be held by the world’s leading partners or the company’s overall competitiveness will be reduced.

Finally, Mr. Stan Shih said that while he may have retired from Acer, he has not retired from society. He still fulfills his personal social responsibility (PSR) and continues to challenge difficulties, break through bottlenecks, and create value. He has established the StanShih Foundation, CTAmbi Investment and Consulting Inc, Porrima Inc, and heads the One Song Orchestra Fun Club. His goal can be summed up as “TaiwanCATs Charming the world”; which is to say that Taiwan’s Culture, Art, and Technology will be famous around the world.

■《About COMPUTEX TAIPEI》

COMPUTEX TAIPEI was founded and named by the then Chairman of Taipei Computer Association (TCA), Stan Shih. In 1985, TCA invited TAITRA to be a co-organizer of COMPUTEX TAIPEI. In 2016, the startup focused event, InnoVEX was introduced.

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