InfoWorld has a story on Taiwan's investment in its Web 2.0 infrastructure. They are pumping $3.1 billion USD into Chunghwa Telecom. Half will go to network upgrades while the other half will be earmarked for Web 2.0 based applications and services.

The plan is a bid to build the island into a world Internet leader. Taiwan has already rolled out Wi-Fi in Taipei, its largest city, and plans to use WiMax to turn the entire island into a wireless Internet zone in the future. Chunghwa is a key player in the wireless and wireline build-ups on the island. It's one of two companies offering Wi-Fi across Taipei.

Recall that Singapore played a seminal role in the first Internet revolution when that city-state invested tens of billions to remake itself as an Asian Tiger. Taiwan's investment will send a signal to high-cap industries everywhere saying that Web 2.0 is legitimate. The question remains whether or not this will spark an investment bubble like the late nineties or if growth will respond to market demand.