Taiwan telecommunication AI industry ESG disclosure

Area of Science:

• Economics
• Environmental Science
• Technology Management

Background:

• Taiwan's high-tech chip industry, particularly in telecommunications AI, shows vigorous growth.
• The telecommunications sector is a major chip consumer, significantly impacting life and commerce post-2019.
• Production processes in Taiwan's telecommunications AI industry pose environmental risks due to toxic substances.

Purpose of the Study:

• To analyze the efficiency of Taiwan's telecommunications AI industry across profitability, sustainability, and market performance.
• To guide businesses in balancing operational profitability with sustainable development and corporate governance.
• To enhance technical capabilities and optimize resource allocation for improved decision-making.

Main Methods:

• Application of the Dynamic Network Directional Distance Function (DN-DDF) for efficiency analysis.
• A five-year study period (2018-2022) using Taiwan's telecommunications AI industry as the sample.
• Inclusion of market value as a factor for improving overall efficiency.

Main Results:

• Average overall dynamic efficiency is highest at the market stage, followed by profitability, and lowest at sustainability.
• Branded terminals show the highest average dynamic efficiency among industry segments.
• Telecommunications companies, at the downstream end, require the most improvement.

Conclusions:

• Balancing profitability and sustainability is crucial for Taiwan's telecommunications AI industry.
• Strategic improvements are needed, especially in downstream segments like telecommunications companies.
• The study provides a framework for data-driven decisions promoting both economic and environmental performance.