Near Universities and research centers Encouraging knowledge-based industries Helping start-ups
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1 The Development and Outlook of Taiwan s s Science Parks October 2, 2006 Definition of Science Park Near Universities and research centers Encouraging knowledge-based industries Helping start-ups 1
2 Linear Model of Innovation 1. Basic Science Universities 2. Applied Science Research Institutes 3. Technological Development Companies 4. Product Markets Development of Science Parks 1950: Stanford University Science Park 1959: Research Triangle Science Park 1965: Herriot-Watt Univ. Science Park 1970: 22 Science Parks : 39-> Hsinchu Science Park : : 473 2
3 Taiwan s Economic Development 1950s Consumer Goods Industry (Export Zones) 1960s - Rapid Growth of Light Industry (Industrial Parks) 1970s - Capital & Technology Intensive Industries (Research Institutes) 1980s - High-Tech Industries (Sciences Parks) Hsinchu Science Park CKS CKSInternation1 Airport Taichung Taipei HSINCHU SCIENCE PARK Kaoshiung 3
4 Hsinchu Science Park HISTORY: Started in 1980 OPERATION: Managed by Park Administration, National Science Council Objectives Attract Domestic and International High-tech Investors Facilitate High-tech Development Recruit High-tech Talents To Enhance Economic Development HSP STSP CTSP 4
5 Development Model of Hsinchu Science Park 1. Basic Science Universities 2. Applied Science Research Institutes 3. Technological Development Companies 4. Product Markets Incentives and Supports 5
6 What Science Parks Offer Easy Access Academic Environment Sound Infrastructure One Stop Service Industrial Clusters Government Strongly Support Easy Access Near Metropolitan Areas Airports Highway, Railway High Speed Rail in
7 Academic Environment Universities Tsing-Hwa, Chiao-Tung, Incubators National Laboratories Research Institutes Industrial Technology Research Institute(ITRI) 23,000+ Students Researchers Collabaration Academic Partnership Research Orgs. Technology Feedback Spin-off of technology and talent ITRI Investment, Training, etc. Industry Tenants Government Industry-academia partnership Professional training, spin-off, etc. Investment, technology spin-off, etc. Park Admin. Universities Academia Collaboration National Labs: National Nano Device Lab. National Chip Impl. Center Instrument Technology Res. Center Space Program Office etc. National Labs Research Orgs. Collaboration Open Labs. 7
8 Park Administration Planning Building infrastructure Selecting & recruiting park tenants Facilitating investment environment Facilitating living environment One-stop Service Infrastructure Industrial Area Residential Area Recreational Area 8
9 Comprehensive Public Facilities Power & Water Supply Land & Office Space Telecommunications Company Housing Bank Clinics Gas Station Recreation Facilities International Schools One-stop Service Land Administration On-job Training Information Network Investment Services Customs Labor Management Business Services Construction Truck Depot Environmental Protection Security Medical Services 9
10 Efficient Administrative Services Service Items -Investment application -Business registration -R&D encouragement -Construction inspection -Labor administration -Security and safety management -International trade service -Building management -Educational Institutes Government -Ministry of Economic -Labor Committee -Ministry of Finance -Ministry of Interior -Ministry of Education Service Department -Customs -Bank outlet -Post Office -Medical Clinic -Storage & Shipping Backup Org. -Water & Electricity -Building Security -Environment Protection -Transportation Committee & Working Group A Full-fledged Complex Complete integration Strong cluster effect HSP - Semiconductors STSP - TFT-LCD CTSP Precision Machinery? Great business opportunities 10
11 Incentives 5 Years Income Tax Exemption Protection of Investors Rights No Import Duty & Commodity Tax Low Interest Rate Loans R/D Matching Grants % Automation/R&D/Training Expenditure to be Credited Against Income Tax Ω Current Status 11
12 Companies and Employee 114, , No. of Company No. of Employee Company by Source of Capital COUNTRY DOMESTIC FOREIGN U.S.A. EUROPE ASIA Total NO. OF COMPANY (2005) 12
13 Employees 114,836 Average age : 30 Male : 51% Female : 49% Education : - 66% College Graduated or above - Over 23,000 or 20% holding Ph.D/Ms. degrees 4,646 Return Expatriates established 111 companies Park Companies
14 INTEGRATED CIRCUITS 169 VERTICAL DISINTEGRATION Wafer Material IC Design Fabrication Packing Testing MediaTek 6 Sunplus 16 Foundry-TSMC 1 UMC 2 DRAM-Powerchip 8 Winbond 9 Promos 10 COMPUTER & PERIPHERALS 56 High-Speed Internet Products Networking Facilities Notebooks Wistron (ACER) Mitac Accton D-Link Kingston 14
15 TELECOMMUNICATIONS 47 TECOM ZYXEL HonHai Cable Transmission equipment Optical fiber communications Wireless & Satellite communications(sat-com) OPTOELECTRONICS 65 Optical Engine (LCos, TFT) Displays (TFT-LCD / LTPS LCD / LED / OLED) AUO 3 CTX Opto tech 15
16 PERCISION MACHINERY 21 Precise Components and Automation Equipment BIOTECHNOLOGY 24 Diagnostic Testing kits Orthopedic Implants Bulk chemicals/ intermediates Dialyzer, Biochip 16
17 Major Considerations for Approval R&D groups and high-tech manpower Technical level & competitiveness of products Research and development plans Pollution control plan Park Industries Industry No. of No. of Company Employee (2005/ 01-12) Sales US$M IC , , % PC/Peripherals 56 12,790 3, % Telecom 47 5,840 1, % Opto-electronics 65 26,649 4, % Precision Mach. 21 1, % 10% of Manufacturing Sector 25% of ICT Sector Biotechnology 24 1, % TOTAL ,836 30,701 17
18 Trading Partner EXPORT China 3,477 Hong Kong 3,257 USA 1,708 Japan 1,637 Korea 1,092 Other 4,185 TOTAL 15,356 22% 21% 11% 10% 7% 29% (us$ million 2005) IMPORT Japan USA Singapore Hong Kong Korea Other TOTAL 4,024 1, ,387 10,436 38% 17% 9% 6% 5% 25% Park Extension & New Parks 18
19 Extension Plan of Hsinchu Science Park Hsinchu Science Park(1980) 625 ha. Base CHUNAN Base 138 ha. (1999) Biotechnology Telecommunication Opto-Electronics DUSHIN Base(2002) DUSHIN 27 ha. LUNGTAN Base(2003) LUNGTAN.198 ha. ILan.600 ha. ILan Base(2004) Base TUNGLUO Base 353 ha. (2004) Telecommunication Micromachinery Opto-Electronics New Parks Software Parks Hsinchu Science Park(1980) Semiconductors CENTRAL TAIWAN SCIENCE PARK(2003) Nanotechnology Precision Machinery SoC Parks Biotechnology Parks Southern Taiwan Science Park(1997) Opto-electronics 19
20 Southern Taiwan Science Park Start: 1997 Size: 1,608 ha. No. of Company: 87 Employees: 45,682 Sales revenue: US$B 10.3 Central Taiwan Science Park Start: 2003 Size: 576 ha. No. of Company: 50 Employees: 10,687 Sales revenue: US$B 1.7 台 中 港 彰 化 3 高 速 鐵 路 台 中 機 場 大 雅 航 太 工 業 區 計 畫 大 雅 交 流 道 西 屯 環 隆 工 業 區 計 畫 水 湳 經 貿 園 區 東 海 大 學 新 市 政 中 心 台 中 工 業 區 機 械 工 業 區 計 畫 台 中 都 會 商 業 核 心 區 台 中 車 站 高 鐵 烏 日 站 1 省 道 高 速 公 路 縱 貫 鐵 路 高 速 鐵 路 20
21 Industrial Technology Ladder Labor Intensive Skill Intensive Technology Intensive R&D Intensive Prospects of Science Parks Developing Taiwan into a Green Silicon Island Hsinchu Biomedical Yilan Park Science Park Hsinchu Lungtan Park Science Park Link Hsinchu Science Park, Central Taiwan Science Park and Southern Chunan Park Taiwan Science Park together to Tunglo Park develop Taiwan into a scientific and Howli Science Park Central Taiwan technological island Science Park Correspond to the ideas of Green Silicon Island, sustainable Yulin Science development and risk sharing of Park national resources. Southern Taiwan Propel and facilitate regional Science Park economic and cultural developments and make a balance between Kaohsiung technological and cultural Science Park developments, in accordance with of sustainable development. 21
22 Contact us HSP Tel: CTSP Tel: STSP Tel:
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