©2026 Business Next Media Corp. All Rights Reserved. No.102, Guangfu S. Rd., Da'an Dist., Taipei City 106, Taiwan
Hardware Shapes the Future, and Taiwan Is the Launchpad: Applied Ventures’ Deep‑Tech Strategy
Since its founding in 2006, Applied Ventures, the venture arm of Applied Materials, has focused its investments on hardware, deep-tech, semiconductor technologies, and advanced materials. The firm understands that transformative technologies, especially those in AI and robotics, cannot succeed without a strong hardware foundation.
Yuan-Ping Huang, Principal at Applied Ventures, explained, “All services need a carrier, especially AI and robotics. Without hardware, many software services, even AI, are impossible to implement.” This statement underlines the firm's belief in the critical role of hardware in facilitating the development and scalability of AI technologies. As Applied Ventures sees it, hardware is the backbone that enables many of the software and AI applications that are revolutionizing industries today.
Hardware Takes Time, But Pays Off
Walter Liu, Investment Principal at Applied Ventures, added to this perspective, emphasizing the complementary relationship between hardware and software: “Hardware provides the basic functionality and performance foundation, while software defines the flexibility of the system.” Liu’s point highlights the firm’s approach to investment—hardware isn’t just a standalone element; it provides the essential foundation upon which software can build. Applied Ventures operates on the principle of “hardware enabled, software defined,” emphasizing that the performance capabilities of hardware directly influence the potential of the software applications built on top of it.
Although hardware investments take longer to develop compared to software, Huang highlighted the long-term benefits: “Hardware investments are primarily in materials or technology, which must undergo scientific research and validation before becoming products.
This process provides more opportunities for intellectual property protection.” This focus on investing in technologies that require validation and testing means that Applied Ventures gains stronger intellectual property protections, which provide both stability and long-term value.
Strategic Investments in Taiwan: Bridging Innovation between Taiwan and Silicon Valley
Taiwan has become a critical hub for semiconductor innovation, and Applied Ventures sees this as a strategic opportunity. In 2019, the firm partnered with the Industrial Technology Investment Corporation (ITIC) to establish the AVITIC Innovation Fund. This fund focuses on enhancing Taiwan’s deep-tech ecosystem by supporting hardware innovations and leveraging Taiwan’s leadership in semiconductor manufacturing. Yuan-Ping Huang commented, “Taiwan is the heart of the semiconductor industry, and coming here to invest internationally is the obvious choice.”
The AVITIC Innovation Fund has already made several key investments, including in TXOne Networks, an industrial network security company that has impressed Applied Ventures with its cutting-edge technology and strong team. Huang praised the company, saying, “TXOne Networks’ technology and team are impressive, and their successful track record is a great endorsement for their technology. Their operational technology (OT) security services will also help our other portfolio companies.” These early investments reflect Applied Ventures' commitment to deep-tech and industrial innovation in Taiwan, where such companies are seen as having the potential to scale globally.
Additionally, the AVITIC fund made its debut at the 2025 InnoVEX international startup competition, showcasing innovations in fields such as collaborative robotics, IoT sensors, and advanced thermal management materials—sectors that will drive future investments. Walter Liu shared his thoughts, saying, “We were deeply impressed by the advanced sensors and technologies at InnoVEX, which will be a major focus for our future investments in Taiwan.” These fields, particularly advanced sensors and robotics, align with Applied Ventures’ interest in developing hardware that supports the next generation of AI-driven systems.
Looking ahead, Walter Liu is confident that the future of AI will be shaped by robotics and automation. He stated, “The future of AI will be in general-purpose robotics and automation. The key to this development is hardware-driven innovation.” With Taiwan's continued strength in semiconductor and hardware technology, Applied Ventures is poised to make significant investments in the region, particularly as global tech giants like NVIDIA and AMD deepen their presence in Taiwan.
©2026 Business Next Media Corp. All Rights Reserved. No.102, Guangfu S. Rd., Da'an Dist., Taipei City 106, Taiwan