Taiwan’s largest telecom operator is doubling down on its startup investment strategy while showcasing proprietary artificial intelligence technology to maintain relevance in a maturing mobile market.
Chunghwa Telecom unveiled its 2025 Digital Innovation Application Series Competition, offering NT$2.1 million ($66,000) in prizes while the company separately announced plans to spend NT$32.36 billion ($1 billion) on AI data centers and network infrastructure this year.
The 23rd annual competition arrives as Taiwan’s dominant carrier seeks new revenue streams beyond traditional telecom services. Chairman Alex Chien’s company has committed to three strategic pillars this year: “Sustainable Future,” “Smart Empowerment,” and “Digital Resilience,” with revenue projected to grow modestly by 1.2% to 1.6%.
Since establishing its 5G accelerator in 2018, Chunghwa Telecom claims to have supported 74 startups, with 20 securing business partnerships or investments. The program helped two companies reach public markets, though the carrier has not disclosed investment returns or exit values.
The competition’s centerpiece demonstration featured an AI avatar of Chien himself, built using the company’s research division’s voice synthesis and language processing technology. The virtual chairman appeared alongside the real executive to promote the contest, marking what Chunghwa Telecom called the first such corporate AI implementation in Taiwan’s telecom sector.
The company is targeting a trillion-dollar market valuation by 2025, banking on AI integration across seven application areas including smart manufacturing, healthcare, and financial services. However, this ambitious goal faces headwinds from intense competition and margin pressure across Taiwan’s saturated telecom market.
The competition includes a new “AI Innovation Special Award” providing computing resources to startups, while an upgraded children’s digital content contest now accepts participants aged 15 and above. Chunghwa Telecom partnered with Taiwan’s Ministry of Culture on the expanded program, signaling government support for digital content development.
Three Chunghwa Telecom subsidiaries—International Integrated Systems, CHT Security, and Chunghwa Leading Photonics Tech—are preparing for initial public offerings this year, potentially providing the parent company with additional capital for its expansion plans.
