Taiwan has had to face cut-throat competition from low-wage countries and import quotas imposed by a number of industrial nations. Government and industrialists are trying to upgrade production by replacing labor-intensive industry with that of the technology-intensive variety.
Initial emphasis was placed on recruitment of talent and advancement of technology. This quickly gave rise to the concept of a science-based industrial park.
The Republic of China has a reservoir of 40,000 scientists and technicians among Chinese living abroad and is ready to encourage establishment of joint ventures. To hasten development of technology-intensive industries, the government decided to establish a science-based industrial park at Hsinchu to put men, equipment, technology and service facilities to full use.
Examples of highly successful science industrial parks are found in Massachusetts and California. The Massachusetts development serves such cities as Boston, Cambridge and Brooklyn and centers around Harvard University and Massachusetts Institute of Technology. Seeking the benefits of advanced technology, various industries have moved into the area. The California counterpart is based on Stanford University, which provides talent and equipment for sophisticated industry. In only 30 years, this technology center has become a world leader in developing integrated circuits and electronics instruments.
The common factors in the success in these two areas are access to scientific research institutes, support from small but technologically advanced industries, availability of service facilities to supply technological and industrial information, existence of higher education and benefits of good communications and other public facilities.
With these requirements in mind, the National Science Council of the Executive Yuan decided to establish the Republic of China's first science-based industrial park at Hsinchu, southeast of Taipei, on the Sun Yat-sen Memorial Expressway. Located in this area are National Tsinghua University, National Chiaotung University, the Industrial Technology Research Institute, the Precision Instruments Development Center of the National Science Council, the Food Industry Research Institute and the Glass Industry Research Institute. All are involved in the research.
Nearby are the College of Science of National Central University comprising the Institute of Earth Sciences and Institute of Mathematics, Chung Yuan College of Science and Engineering, Chung Cheng College of Science and Engineering, the Telecommunications Research Institute of the Ministry of Communications and the Chungshan Institute of Science. These are peripheral supporters of the science park.
The Hsinchu area already has attracted such developed industries as electronics, electrical machinery, glass, textile, machinery and petrochemicals. Some or all of these are expected to support enterprises in the park.
The Hsinchu park is 75 kilometers from Taipei, 94 kilometers from the port of Keelung, 90 kilometers from Taichung harbor and 275 kilometers from Kaohsiung harbor. The Chiang Kai-shek International Airport at Taoyuan is 55 kilometers to the north.
Travel time from the park to CKS airport is less than an hour by car. Truck time for shipment moving from the park to Keelung harbor or Taichung harbor is about 90 minutes. Kaohsiung harbor is about three hours away.
Planning of the science park began in September 1976, when the Executive Yuan designated the Ministry of Economic Affairs, Ministry of Education and National Science Council to organize a joint development group under NSC management. The National Science Council proposed a ten-year three-stage plan. The first stage of three years requires the import of technology, personnel and manufacturing experience. Products are expected to reach the world market in the third year.
The second stage of three years will make the park competitive internationally. The capability for designing automatic instruments will be attained and links forged between industry and institutions of advanced learning. From 20,000 to 40,000 jobs will be created for highly qualified industrial personnel.
The third stage of four years will be marked by invitations to foreign and domestic capitalists to invest in large-scale, technology-based enterprises.
The Hsinchu Science-based Industrial Park covers an area of 2,000 hectares, of which 210 hectares will be developed in the first three years. Two factory buildings have been completed, each to accommodate eight enterprises. Construction of a 10-story administration building will begin soon.
Foreign owned enterprises operating in the park will enjoy a number of privileges. They will be allowed to repatriate dividends without restriction. A year after the start of production, they will be allowed to repatriate 15 per cent of the capital annually. Tax exemptions are also offered.
Not all enterprises are welcome. The Statute for Establishment and Administration of a Science-based Industrial Park enacted by the Legislative Yuan stipulates that companies must be organized in accordance with the Company Law and limited by shares. The investment plan must be in conformity with the industrial development of the Republic of China. Plants are required to train sizable numbers of local technical personnel, to have adequate research facilities and not to create public hazards.
The first enterprise, Wang Computer Taiwan Limited, moved into the park last November. According to Ho Yi-tzu, director of the park administration, 20 enterprises will begin operations by the end of 1980. One hundred specialists will return from the United States to accept jobs. Ho said that the Republic of China has many scientists and technicians who stand to benefit from the training provided by sophisticated industries operation in the new Hsinchu park.
[Picture Caption]
Left: Plan for the first-phase development of the Hsinchu science-industrial park. Right: Building of the Industrial Technology Research Institute located in the park.
1. Duplex residences in the science industrial park which are rented to workers. 2. Standard factory buildings ready for rental to investors. 3. Plan for the administration building.
Building of the Industrial Technology Research Institute located in the park.
Duplex residences in the science industrial park which are rented to workers.
Standard factory buildings ready for rental to investors.
Plan for the administration building.
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