Public Sector Research Facilities

As introduced by the Yearbook of the Republic of China:

Science Parks

The first of a series of high-tech industrial parks, the Hsinchu Science Park (HSP), was established in northwestern Taiwan to create an environment conducive to high-tech R&D, production, work, life, and entertainment to attract high-tech professionals and technologies. The park's excellent location and the rapid growth of its companies and products have made it the Silicon Valley of Asia and a base for developing high-tech industries.

Since 1980, the ROC government has invested approximately US$1.01 billion in the park's infrastructure and administration. As of October 2003, 356 high-tech companies were located in the 770-hectare park. Turnover from January to August 2003 totaled US$14.9 billion, a 14.72 percent decrease over the previous year due to the worldwide recession and reduced demand in the IC and information industries. The total number of park employees grew 2 percent.

The 147 IC manufacturers in the park concentrate on producing DRAM and SRAM chips, as well as the development of Application Specific Electronic Module (ASEM) and Multichip Module (MCM) foundry services. IC manufacturing in the park is supported by a full range of industries that handle materials, design, testing, and packing. With an annual turnover of US$13.2 billion in 2002, these companies now account for 5 percent of the world's IC production value, making Taiwan the fourth largest supplier worldwide after the United States, Japan, and South Korea. The importance of computers and computer peripherals to Taiwan's foreign trade has risen over the past decade, and currently Taiwan ranks as the world's number one in 13 categories of information technology products: MASK ROM, IC Packaging, Notebook, LCD Monitor, CD ROM, CD RW, DVD, PC Camera, Router, Modem, LAN Card, ADSL hardware facilities, and wireless LAN Card.

As part of a global strategy to penetrate foreign markets, 60 of the park's companies have established branch offices overseas. Through international cooperation and strategic alliances, they are exploring international R&D resources to create an integrated technological production network. They have also used joint ventures and mergers to overcome growth limitations and globalize their operations.

The basic infrastructure of the HSP has completed its third phase of expansion and companies have moved in. Given the rapid growth of high-tech industries, Jhunan and Tongluo townships of Miaoli County, 15 and 40 minutes' drive from Hsinchu, respectively, were chosen as the sites for the fourth phase of expansion. Groundbreaking was conducted in July 1999 for the 138-hectare Jhunan base, which will mainly house companies developing intellectual optoelectronics and biotechnology industries. Thirty-four hectares of land will be reserved for industrial use, half designated for biotechnology and half for optoelectronics and telecommunications. The 353-hectare Tongluo base will be used for diversified high-tech industries such as optoelectronics, telecommunications, as well as R&D for these three industries and others including semiconductors, biotechnology, computers, and peripherals.

The second such park is Southern Taiwan Science Park (STSP), located between Sinshih and Shanhua townships in Tainan County. Covering 1,600 hectares of land, the STSP represents part of the government's effort to build Taiwan into a "green silicon island." STSP's turnover in 2003 totaled US$2.99 billion. As of September 2003, 116 firms had received approval to move into the park. By 2010, an estimated 200 companies located in the park are expected to produce US$27 billion annual output and create 77,000 jobs.

In addition to the Hsinchu and Tainan Science Parks, a third park in Taichung and Yunlin was launched. This so-called Central Taiwan Science Park covers 429 hectares, with the main 332-hectare site adjacent to Taichung City and the Daya Township of Taichung County, and a 97-hectare satellite zone located in the Huwei Township of Yunlin County. The new science park will focus on the development of nanotechnology, aerospace, and precision machinery at its Taichung base, while the Yunlin base will emphasize agricultural-biotechnology. As of October 2003, 18 firms had received approval to move into the Central Taiwan Science Park, creating 50,000 jobs and attracting about US$25.7 billion in investments.

Industrial Technology Research Institute

Headquartered in the Hsinchu Science Park area with branch offices throughout Taiwan, the Industrial Technology Research Institute (ITRI) is the largest nonprofit research organization in Taiwan, with a total workforce of 6,190 and a budget of US$470 million in 2002.

Founded in 1973 by the Ministry of Economic Affairs, the ITRI has since become both a technical center for industry and an important organization for the government's industrial policies. The ITRI receives about half of its funding from the government (from the Ministry of Economic Affairs) and half from industrial sources. The ITRI's research projects include communications and optoelectronics (microelectronics, display, and SoC), precision machinery and MEMS (metrology and system engineering), sustainable development (including energy, environment and industrial safety), and nanotechnology (nanomaterials, nanoelectronics, and nanobiotech). Among these projects, the ITRI is enhancing innovative and advanced research to develop leading technologies and improve competitiveness. The ITRI is also involved in telecommunications, biotechnology, genomic medicine, Si-Soft, nanotechnology, and e-learning national research programs.

For 30 years, the ITRI has been recognized as a significant contributor to applied technological research for industry. A prominent example is the integrated circuit (IC) industry. During the mid-1970s, the ITRI obtained access to CMOS technology from the United States. Over the following decade, the ITRI led Taiwan's developing IC industry, providing both technology and personnel. The top two IC foundries in the world -- Taiwan Semiconductor Manufacturing Company (TSMC) and United Microelectronics Company (UMC) -- command 60 percent of the worldwide dedicated chip foundry market.

Many other traditional industries have benefited from the ITRI's R&D. Taiwan's textile industry has retained its competitive edge with the help of many ITRI innovations, such as micro-fibers, special polymers, water-repellent fabrics, and various surface-treatment methods. The ITRI has helped in the transformation of mature chemical companies by introducing various chemicals used in microelectronics production lines. Many industrial sectors, such as precision machinery and automation, energy and environment, and optoelectronics are also partners and beneficiaries of the ITRI's projects.

The ITRI's Open Laboratory program, instituted in July 1996 and consisting of joint research and incubator programs, entered its seventh year with an accumulated R&D investment of over US$2 billion and the formation of 107 startup companies (as of September 2003).

The effort to pursue international cooperation has resulted in close ties with many world-class institutions such as Lucent Technologies, Microsoft, MIT, Telecordia and the University of California in the USA, NRC in Canada, FhG in Germany, Avantium in Netherlands, RAS in Russia, AIST in Japan, MATIMOP in Israel, and CSIRO in Australia.

The ITRI works with partners on technological advantages and new products. In 2002, the ITRI transferred technology for 414 items to 542 companies in Taiwan, obtained 821 patents (459 domestic and 362 foreign), hosted over 1,189 conferences and training courses, and published 911 reference papers and 1,106 conference papers. Over 25,000 companies received services from the ITRI.