Amid the rolling hills of Taichung County, a massive US$31 billion investment is fast changing a landscape of sugar cane and sweet potato farms into lines of slick towers, which will house the latest in cutting edge technology.
That technology will allow the Central Taiwan Science Park (中部科學園區) to deliver to the world's lounge rooms the latest in wide flat panel TVs and super computer screens, some big enough to match a three-seater couch in size.
But it is the speed of development and the rate of companies willing to sign on to the project, on the outskirts of Taichung City, that has impressed its backers and confounded critics.
PHOTO: AFP
Lai Ying-hsi (
"They felt why does Taiwan need another high-tech industrial park while the other ones in the south are only half booked by potential investors due to economic sluggishness," Lai said.
Since the study, 72 companies ready to invest NT$1.04 trillion (US$31.04 billion) have won approvals, among them industry leaders including AU Optronics Corp (友達光電), ProMOS Technologies Inc (茂德科技) and US-based Corning Inc.
Lai said that it was Taichung's stable electricity and steady water supply which eventually convinced the authorities to proceed. Taichung boasts one of a biggest thermal power plants in Asia, while chronic water shortages have dogged science and technology parks elsewhere in the country.
Yang Wen-ke (楊文科), deputy director-general of the Provisional Office of Central Taiwan Science Park (中科籌備處), said the rapid pace of its development -- in an industry which is consistently tied to tight construction deadlines to deliver next generation products -- was a big factor in winning over more firms.
The first companies began opening their doors within 10 months of the project's drafting.
"The pace of its development is the fastest ever in Taiwan's efforts to build high-tech industrial parks," Yang said. "It changed so fast, you would be amazed by the vast differences registered over every month."
It took AU Optronics just 15 months to complete construction of an NT$80 billion complex to produce 60,000 panels a month, including some for revolutionary 74x60 inch television sets.
"AU Optronics Chairman Lee Kun-yao (李焜耀) said `if AU Optronics had built the plant elsewhere, the construction may not have been as swift'," Lai said, adding that the project was completed 47 days ahead of schedule.
"That is important to a time-sensitive industry," Lai said.
US-based Corning followed suit, with a groundbreaking in September last year for a glass melting plant that will produce compacted glass substrate to be used in LCD screens.
Then came local memory chip maker ProMOS Technologies, which is designing cutting-edge 90-nanometer technology to produce microchips and 40,000 300mm wafers a month in two projects which cost NT$85 billion to build.
While optoelectronics will account for 34 percent of the park's ongoing investment projects, the balance will be filled by precision machinery, biotechnology, semiconductor, computer peripherals and telecommunication projects.
"The demand for land is much stronger than our previous estimates," Yang said.
Authorities plan to expand the size of the park to 1,200 hectares after 94 percent of the current 413 hectares of land was booked.
Yang said he was confident the new industrial park would eventually outperform the Hsinchu Science Industrial Park (新竹科學園區) in the north, which has been hailed as the nation's answer to Silicon Valley in the US.
The Hsinchu science park houses 384 high-tech companies focusing on semiconductors, telecommunications, and computer related industries. It churned out products worth US$32.41 billion last year.
But the LCD and microchip industry is renowned for its huge consumption of water and investors at Hsinchu have been annoyed by past occasional water shortages.
"The new industrial park is fast coming from behind," Yang said proudly of the Taichung project.
Lai touched a raw nerve in regards to competing parks elsewhere, when he asked rhetorically: "Have you ever heard of central Taiwan being gripped by a water shortage?"
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) secured a record 70.2 percent share of the global foundry business in the second quarter, up from 67.6 percent the previous quarter, and continued widening its lead over second-placed Samsung Electronics Co, TrendForce Corp (集邦科技) said on Monday. TSMC posted US$30.24 billion in sales in the April-to-June period, up 18.5 percent from the previous quarter, driven by major smartphone customers entering their ramp-up cycle and robust demand for artificial intelligence chips, laptops and PCs, which boosted wafer shipments and average selling prices, TrendForce said in a report. Samsung’s sales also grew in the second quarter, up
LIMITED IMPACT: Investor confidence was likely sustained by its relatively small exposure to the Chinese market, as only less advanced chips are made in Nanjing Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its stock price close steady yesterday in a sign that the loss of the validated end user (VEU) status for its Nanjing, China, fab should have a mild impact on the world’s biggest contract chipmaker financially and technologically. Media reports about the waiver loss sent TSMC down 1.29 percent during the early trading session yesterday, but the stock soon regained strength and ended at NT$1,160, unchanged from Tuesday. Investors’ confidence in TSMC was likely built on its relatively small exposure to the Chinese market, as Chinese customers contributed about 9 percent to TSMC’s revenue last
With this year’s Semicon Taiwan trade show set to kick off on Wednesday, market attention has turned to the mass production of advanced packaging technologies and capacity expansion in Taiwan and the US. With traditional scaling reaching physical limits, heterogeneous integration and packaging technologies have emerged as key solutions. Surging demand for artificial intelligence (AI), high-performance computing (HPC) and high-bandwidth memory (HBM) chips has put technologies such as chip-on-wafer-on-substrate (CoWoS), integrated fan-out (InFO), system on integrated chips (SoIC), 3D IC and fan-out panel-level packaging (FOPLP) at the center of semiconductor innovation, making them a major focus at this year’s trade show, according
DEBUT: The trade show is to feature 17 national pavilions, a new high for the event, including from Canada, Costa Rica, Lithuania, Sweden and Vietnam for the first time The Semicon Taiwan trade show, which opens on Wednesday, is expected to see a new high in the number of exhibitors and visitors from around the world, said its organizer, SEMI, which has described the annual event as the “Olympics of the semiconductor industry.” SEMI, which represents companies in the electronics manufacturing and design supply chain, and touts the annual exhibition as the most influential semiconductor trade show in the world, said more than 1,200 enterprises from 56 countries are to showcase their innovations across more than 4,100 booths, and that the event could attract 100,000 visitors. This year’s event features 17