A dispute over the government expropriation of land in Taoyuan’s Longtan District (龍潭) for the expansion of Hsinchu Science Park (新竹科學園區) underscores the severe scarcity of industrial land in northern Taiwan and the dangers of hasty policymaking, which could undermine the nation’s industrial development. Taiwan Semiconductor Manufacturing Co (TSMC) planned to build its next-generation chip fab on the land, but amid escalating resident protests, the world’s biggest contract chipmaker last week said it was “no longer considering establishing a site” in Longtan.
The opposition TSMC faced at home differs starkly from the support it has received in Japan and Europe in terms of funding and land acquisition.
A group representing residents of Longtan yesterday protested against the government’s plan to expropriate their land to create the new industrial zone in Hsinchu Science Park. Residents demanded that the government scrap the project entirely, saying that they were being bullied as part of a land grab. Some residents said they worried they would be unable to afford a new home even with government compensation.
The Hsinchu Science Park Administration said it would re-evaluate the Longtan phase 3 expansion, adding that all the expropriation procedures were legal. The industrial development agency has offered to acquire the land based on market value, as the phase 1 and 2 sections of the park have already been fully utilized. The administration last month scaled back 20 percent of the land use after resident protests, which more than halved the number of affected households from 162 to 77.
The administration’s response failed to make peace with upset Longtan residents or convince TSMC to build in the expansion. A lack of respect and transparent communication have has been the crux of the disputes. Starting in October last year, when the government first talked about the Longtan development, most residents were unaware that their homes or farmland would be expropriated for the project. For those affected and for the public in general, the news came out of the blue. The government told reporters that this “pilot project” had been in discussions for three years before it was publicly disclosed.
The Hsinchu Science Park Administration in December last year announced that TSMC would build the new fab to make its cutting-edge 1.4-nanometer chips on 158.59 hectares of land, 90 percent of which is privately owned. Proponents of the project have said it would create about 5,900 jobs and generate up to NT$650 billion (US$20.05 billion) in production value per year.
The stealthy planning of the expansion angered residents. They said they felt like the government was encroaching on their property and rights. Some who have lived on their property for generations said they would fight the government for as long as it takes.
Deadlocks would neither help the community nor benefit companies. It is the government’s responsibility to help the economy grow and accommodate business expansion, especially for the semiconductor industry, which has become strategically important to Taiwan’s economy and national defense, with some calling it a “silicon shield.” Creating jobs and protecting society are also the government’s responsibilities. An industrial land shortage is a long-running issue that would not be easily solved, but any land expropriation should be fair, sound and necessary. On top of that, it requires clear, timely communication to make it successful.
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