Taiwan still enjoys a leading status in the high-tech field that China cannot match in the next five years, despite the relocation of some local manufacturers to China because of cheaper production costs there, a government official said yesterday.
"In addition to low labor costs, high-tech companies should also take other factors into account when they're formulating expansion plans [in China]," Tai Chien (戴謙), director general of Southern Taiwan Science Park Administration (南科管理局), said yesterday.
The nation has strong technological support and highly-educated human resources, Tai said.
"Taiwan, which possesses an edge with superior technology support [as it has a more complete supply chain for the high-tech industry], is highly competitive, whereas China only offers cheap labor," he said.
Using the biotechnology industry as an example, Tai said every new product needs to undergo a series of tests before being launched. In that respect, Taiwan is the most cost-efficient location, followed by Singapore and China, he said, citing a survey by Stanford Research Institute.
Tai made the remarks yesterday during a press briefing about Southern Taiwan Science Park (
The optoelectronics sector is the main driving force of the park, followed by the integrated circuit (IC) industry. Last year, the optoelectronics industry created NT$89.7 billion in sales, accounting for 57.8 percent of the park's annual revenue, while IC companies generated NT$60.9 billion in sales, accounting for 39.2 percent.
Tai said the park plans to lure 30 more investors, targeting annual sales of NT$250 billion this year. Chisso Corp of Japan is considering to invest in the park, he said, without elaborating. Chisso supplies liquid crystal materials to both Chi Mei Optoelectronics Corp (奇美電子) and Hannstar Display Corp (瀚宇彩晶) at the park.
The park -- consisting of 1,038-hectares in Tainan and 570-hectares in Luchu, Kaohsiung County -- is competing with Central Taiwan Science Park (中部科學園區) in Taichung to attract optoelectronics companies. The Taichung park already enjoys an advantage in its transportation network, which includes Taichung Port and Chingchuankang Airport.
Tai dismissed such concerns, saying that the park has finalized infrastructure work including a sewage treatment plant, schools, a shopping complex and buses.
"Most importantly, the so-called `cluster effect' is now beginning in the park, which could draw more IC and flat-panel companies, as well as their component suppliers to set up plants here," Tai said.
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