With their own brands, the companies could earn as much as 30 percent of the consumer value of a product, analysts estimate.
Hsinchu Science Park Administration director-general Huang Der-ray (黃得瑞) said companies in the park had increased spending on research and development from 4 percent of total revenue in previous years to 7 percent in the last three years.
Firms have also begun to focus on innovation and building their own brands. Mediatek Inc (聯發科), a chip design company that initially focused on optical storage drivers' chips, has ventured into other areas, including designing chips for wireless communications and high-definition digital televisions. The company is one of the most profitable in the science park and is considered a pioneer in its designs.
Several companies have focused on research into new technologies, including solar energy, Huang said. One, Gintech Energy Corp (昱晶), has been successful in designing solar panels, which it sells to power companies around the world.
More companies are moving toward design. A decade ago, only about 20 or 30 companies in the Hsinchu park were chip design companies, with most being contract manufacturers. Now, there are 80 companies whose focus is design, Huang said.
Workers like Liang, while worried, say they think Taiwan can pull off another economic miracle.
"I'm optimistic," he said, but added: "To compete, Taiwan has to invest a lot of money."
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