A microcosm of Taiwan’s economic history
We visited with former EPZA director general Huang Wen-guu, who was the longest serving person in that post. As soon as we sat down, he said with a laugh that this was “simply chatting,” but in fact as he talked he related a history of economic development in Taiwan.
Huang says that in the late 1990s, when he first took office, many labor-intensive industries had already left Taiwan, and half the factory buildings in the Kaohsiung EPZ were empty. Moreover, as the zone had been in existence for more than 30 years, many of the buildings were old and dilapidated. “Those companies that were going to leave had already left, so the ones that remained were those that wanted to continue to develop and take up the challenge of industrial transformation.”
The departure of manufacturing companies left entire industries “torn up by the roots,” as Huang describes the situation. The whole supply chain was disrupted, and the original cluster effects were eradicated. However, seen from another perspective, “being torn up by the roots was also an opportunity, and although it was really tough going it became possible for transformation to begin,” says Huang earnestly.
Two of the main purposes behind founding the EPZs were to attract foreign investment and bring in new technology. Over the years, Taiwan’s technological level has risen greatly, and factory operations have progressed from automation to computerization to digitization. “Over the past 20 to 30 years, we had gradually restructured and reached a high standard, but it was only when the recent US–China trade war arose that the final stage of transformation was successfully completed,” says Huang.
The trade disputes caused many Taiwanese-owned firms in China to decide to relocate. At that point, government policy incentives attracted many such firms to come back and reinvest in Taiwan and rebuild their supply chains here.
Given the demand for factory and office space for returning Taiwanese firms, construction of the “Innovation Building” in the Kaohsiung EPZ was quickly put in hand and was completed in early 2022. As Wu Ta-chuan leads us on a tour of the newly completed factory floors, he explains that firms like Radiant Opto-Electronics Corporation and JET Optoelectronics Company are already preparing to move in and begin operations in the structure.
For Huang Wen-guu, another highly significant event is the recent renaming of the EPZs. In response to indusrial transformation and upgrading, EPZs have been renamed “technology industrial parks” (TIPs). This rechristening “has consigned the name ‘export processing zone’ to history, but the spirit continues and the TIPs will move forward into the next 50 years.” This is a fitting postscript to Huang’s career as a civil servant.
Historic buildings in EPZs (now renamed technology industrial parks) that were part of Taiwan’s economic growth are being preserved and repurposed. Examples include the administration building in the Cianjhen TIP , the auditorium in the Nanzih TIP, and a former hazardous goods warehouse in the Cianjhen TIP which has been converted into open-air pavilions. Such buildings help us remember the hardships of the past.