Major Milestones
How Taiwan Built a World-Leading Netcom Industry
Taiwan officially entered the Internet era in 1990 with the setup of academic networks. ITRI has played a pivotal role in the evolution of related internet technologies, including the dial-up internet, cable modems, ADSL, and Wi-Fi. In 1986, ITRI developed LAN technology that kicked off the niche application of factory network control systems. ITRI continued to work on network communication devices in the 1990s and transferred the technologies to manufacturers. This sped up the entry of Taiwan’s netcom products into overseas markets where they became exceptionally popular.
Later with the Ethernet boosting the development of LAN, ITRI unveiled the 10 Mbit/s Ethernet hub and switch, making Taiwan the largest global supplier of LAN switches. The late 1990s witnessed the explosive growth of the Internet, and at that period, ITRI presented broadband user terminal devices, cable modem technologies, and the ADSL prototype broadband modem system, which allowed Taiwan’s modem industry to take over 80% of the global market share. Moreover, ITRI developed the 802.11b wireless LAN card, introducing Taiwan to the Wi-Fi era and setting the foundation for Taiwan to be lauded as “the kingdom of WLAN.”
As more and more businesses were concerned about cyber security, ITRI worked with 23 manufacturers in 1996 to form an alliance for the R&D of IP-VPN that had broadband encryption functions. They also set up an IP-VPN interoperability testing lab, helping businesses obtain international verifications and increase added-value of products to be prepared to enter the emerging market of network security equipment.
In 2005, ITRI and Chunghwa Telecom started to promote the fiber-to-the-home (FTTH) industry, applying the Ethernet Passive Optical Network (PON) technology to solve the issue of insufficient access bandwidth. In 2009, ITRI developed the fiber-optic communication (FTTx) management system which was later transferred to manufacturers including Tecom, Tainet Communication System Corp., Tailyn Technologies, Zyxel, and Gemtek. This progress allowed Taiwan to achieve the goal of reaching 4.2 million FTTH users by 2010.