Sigfox courts Taiwan hardware makers for IoT

Sigfox is courting Taiwan makers of smart devices to achieve economies of scale and dominate the Internet of Things.

Sigfox network and other WAN protocols like LoRa, LTE-M and NB-IoT are on the rise because consumers want a broader-reach alternative for short-range ZigBee and Z-Wave standards. Sigfox is different and has made it difficult to scale by developing everything in-house, according to DigiTimes. Sigfox's plan has been to develop its own network that service providers can utilize for a fee based on the number of “connected” devices. However, without massive scale, it's hard to attract clients. That's where Taiwan comes in.

Sigfox is now hoping that it can entice Taiwan manufacturers to make more hardware for the Sigfox network, suggesting it could share revenues from network access fees with Taiwan partners. Sigfox wants to launch its IoT network in 55 countries, which will require a big step up in device manufacturing. It is focusing on Taiwan semiconductor companies and other device manufacturers because of the island's reputation for being competitive in this area.

The fact that Sigfox is turning to Taiwan is telling. China has been ramping up competition in telecommunications and semiconductors, but it's not at the same level as Taiwan yet. This is certainly true in the semiconductor industry, an area in which China is pouring money to catch up with competitors. China is much more competitive in telecommunications devices, though. To simplify the supply chain, Sigfox might find it advantageous to just focus on Taiwan, but the more closed-off nature of Sigfox still puts it at a disadvantage. Because China manufacturers are already using more open wireless standards, it might be difficult for Sigfox to stay competitive in the long run.