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Experience in Scientific ParkDevelopment in Taiwan

Jeng-Ywan JengDirector, Professor and Dr.

email: jyjeng@nsc.gov.twTel: +7-495--956-3786 P 39Mobile: +7-916-592-2524

National Science Council Taiwan In RussiaS&T Division in Taipei-Moscow Economic & Cultural CC

National Taiwan University of Science and TechnologyDepartment of mechanical Engineering

jeng@mail.ntust.edu.tw

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Jeng-Ywan Jeng, 鄭正元 Ph.D.

TaiwanTainan

Department ofMechanicalEngineering

National Cheng KungUniversityBS1981/9~1985/6

UKGraduate Institute ofMechanicalEngineering

University of ManchesterInstitute of Science andTechnology UMIST

M.Sc.1988/10~1989/9

UKGraduate Institute ofMechanicalEngineering

The University of Liverpool,Laser Material ProcessingCentre

Ph.D.1989/10~1992/7

NationDepartment/ProgramInstitutionDegreeDuration

EducationEducation

2

Jeng- Experience

Lien Chang ElectronicOutside Director

TECO Electro Devices Co., Ltd.Auditor

Creative Sensor Inc.Outside Director

2004-2007/1

Teco Group Research InstituteTECO Corp.Director General2005/2~2007/1

Institute for Manufacturing,Department of Engineering

University of Cambridge UKVisiting Scholar

2008/7-2008/8

ECE Dept., MultidisciplinaryOptical Switch Technology Center

University of California,Santa BarbaraVisiting Scholar2001/6-2002/2

Department of MechanicalEngineeringAssociated /Professor1992/8~till now

Office of R&DDean2007/8~2009/7

EU-FP7 National Contact PointOffice -TaiwanPI & CEO

2008/12~2010/1

Preparatory Office of PatentGraduate Institute

National Taiwan Universityof Science and Technology

NTUST

Director2009/8~2010/1

Past Experiences

Science & Technology Division inRussia/ MoscowNational Science CouncilDirector2010/1~now

Department/ ProgramInstitutionPositionDuration

3

Research Interest

• Innovation and Technology Transfer of Patent andKnow How

• Opto-Mechatronics• Femto Second laser Material Processing and

Applications• Rapid Prototyping and Rapid Tooling• Laser Material Processing• Process Automation

4

Science Park Administration

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ContentContent

1. General Information

2. Industries

3. Development Status

4. International Reputation

1. General Information1. General Information

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Taiwan’s Leading Products & Industry Capacities

Industries 2009 Global MarketShare (%) Rankings

IC Foundry 66.7 1e-Paper 91.1 1

Mask ROM 97.2 1IC Design 25.8 2

DRAM 15.7 2TFT LCD(>10”) 35.3 2TFT LCD(<10”) 26.4 2

OLED 34.1 2LED 25.5 2

Data source：ITRI（2010/04）

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WEF’s top 6 rankings of industry cluster competitivenessNations 2008-2009 2007-2008 2006-2007

Taiwan 1 1 1

U. S. 2 2 2

Singapore 3 4 7

Italy 4 21 85

Japan 5 12 27

Finland 6 11 3Data from: WEF (World Economic Forum Annual Report)

Hsinchu Science Park is the powerhouse of Taiwan’s high-tech industryand one of the best innovation industry clusters in the world.

No. 1 in Global Industry Cluster

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Science Parks in Taiwan

HSPLongtan (107) (2004)

Hsinchu Biomedical (38) (2005 )

Hsinchu (653) (1980)

Jhunan (123) (1999)

Tongluo (350) (2003)

CTSPHoli (255) (2006)

Taichung (413) (2003)

Erlin (635) (under construction)

Huwei (97) (2006)

Yilan (71)(under construction)

North

Central

South

STSPTainan (1,038) (1996)

Kaoshiung (570) (2001)

Startup of HSP:Dec. 15, 1980

Managed by:Science ParkAdministration,National ScienceCouncil

Total: 4,627 Hectares

(Hectares)

Chung Hsing (277)(under construction)

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HSP in 1980sHSP in 1980s WasteWasteWaterWaterPlantPlant

ParkParkAdministrationAdministration

ResettlementResettlementAreaArea

PowerPowerPlantPlant

HousingHousingUnitsUnits

ParkParkPhasePhase

II

MainMainEntranceEntrance

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HSP at PresentHSP at PresentNationalNational

TsingTsing HuaHuaUniversityUniversity

NationalNationalChiaoChiao TungTungUniversityUniversity

SynchrotronSynchrotronRadiationRadiationResearchResearchCenterCenter

ParkParkHousingHousing

UnitsUnits

ScienceScienceParkPark

AdministrationAdministration

ScienceScienceParkPark

MuseumMuseum

ParkParkLifeLifeHubHub

ParkParkResidentialResidential

AreaArea

--NCTU--NTHU

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Why Science Parks

High-techTalent

RootingHigh-techIndustries

High-techInvestment

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Management Model

Land owned by StateLand or standard factories areavailable for rentLaisser faire of companies’activitiesOne-stop services from government

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Infrastructure

Water, power, telecom, road,etc.Standard fabs and housingunitsWastewater treatment plant24H custom clearance servicesBanks, clinics, gas stationsBilingual school, recreationfacilities

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IncentivesIncentives

No import duty for equipment andmaterials

R&D grants and on-job trainingsubsidiary

Corporate income tax: 17%

R&D expenditure tax deduction up to15% without exceeding 30% of corporatetax to be paid

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The Administration is authorized to offer allnecessary services for Park tenants:

One-Stop Services

Water, power, safety,environmental protection,

transportation commissionsof Park Association

Custom, banks,post office, clinics,shipping, etc.

ConstructionSecurity Bilingual school

InvestmentBusiness reg.Fire-fighting

R&D grantLabor safetyTrade license

Foreign labor

Tax break Environmental protection

AuthorizationAuthorization

SupportSupport

MOEA, MOF, CLA, MOI, MOEMOEA, MOF, CLA, MOI, MOE

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National Labs

National Applied Research Laboratories (NSC)1. National Nano Device Laboratories2. Instrument Technology Research Center3. National Space Program Office4. National Center for High-performance Computing5. National Chip Implementation Center

National Synchrotron Radiation Research Center (NSC)

National Health Research Institutes

Animal Technology Institute Taiwan(Department of Health)

(Council of Agriculture)

2. Industries2. Industries

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535 86617372124244329033406

48106706

10940

1391513693

20387

29803

16916

20454

24973

3255230765

34503

31964

27609

34829

11565

0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

ICPCTeleComOptoElecMachineryBioTech

%

PC

IC

Telcom Opto

Annual Revenue and Industry Changes

* 2000-2009 annual revenue of HSPcontributes to 9% of domesticmanufacturing revenue

PC-Driven

* 2001 U.S.’s 911 and Japan’s recession caused global economy to revise 35%* 2003 Outbreak of SARS* 2008-2009 Global financial tsunami

InnovationIC-Driven

Million USD

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Industry Revenue AllocationIndustry Revenue Allocation

ICs67.6%

Optoeletronics20.7%

Computer6.5%

Telecommunication2.8%

Precision Machinery1.8%

Biotechnology0.2%

Total Sales Revenue： 17.5 Billion USD (2010.01-06)

(The total sales revenue of 2010 is estimated to be 37 billion USD)

Others0.4%

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2010. 012010. 01--06 Revenue06 Revenue

Industries RevenueBillion USD

(2010.06)

IC 12

Computer & Peripherals 0.1

Telecommunication 0.4

Opto-electronics 3.6

Precision Machinery 0.3

Biotechnology 0.1

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IC Design(Fabless)

*129

Mask*5

ICManufacturing

*17

IC Packaging*11

Leadframe*3

Testing*3

Wafer*6

Equipment*17 Chemical *1

EDA *5

DNP,TMC

IC Industry

(2010.06)

No. of Tenants: 198No. of Tenants: 198

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Image Display IndustryITO thin

filmPhoto-lithographic

maskBacklightmodule Driver IC

TFT LCD OLEDLCoS panel

LCDprojector

Front/backprojector

DigitalcameraN/B LCD

Mirasol

Opticalfilm

upstreamdow

nstreamm

idstream

E-paper

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LED/LD IndustriesUpstream

applicationsubsystem

Midstream

Epi wafer Crystalgrain Traffic

signal/billboard

LED/backlight

LED

Epi Wafer Chip LDmodule

SystemLD

Downstream

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Solar Energy Industry

太陽能電池PolysiliconPolysilicon WaferWafer CellCell ModuleModule SystemSystem

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AgriculturalBiotechnologyAgricultural

BiotechnologyHealthy

FoodHealthy

Food MedicineMedicine

Testing KitsTesting KitsSupportingBiotechnologySupporting

Biotechnology

*Seedling*Plant protector*Plant fabs

*Foodsupplement

*Functional food

*Material medicine*Medicine diffusion*New medicine

EnvironmentalProtection Biotechnology

EnvironmentalProtection Biotechnology

*BiomedicalWastewater Treatment

*Medical Kits*Analytical Tests*Medical Devices

*Biotech materials

Biotech IndustryBiomedicalMaterials

BiomedicalMaterials

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Renowned Tenants fromRenowned Tenants from A to Z !!

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(2010.06)

Foreign Tenants

•APPLIED MATERIALS•LAM RESEARCH•KINGSTON•DUPONT TAIWAN LIMITED•SEMATECH•QUALCOMM TAIWAN•INVENSENSE TAIWAN•IMPAX LABS•PHOTRONICS•DOW CHEMICAL

•LTI DRIVES

•LOGITECH

•IMEC

•SHIN-ETSU OPTO•SHIN-ETSU HANDOTAI•RORZE TECHNOLOGY•DENMOS TECHNOLOGY•YUASA-DELTA•HOYA•TOKYO ELECTRON•ULVAC•SUMIICA•KEST•INNOMEDIA•STATS CHIPPAC

U.S.A.

Germany

Belgium

SwitzerlandJapan

Singapore

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Potential High-tech Industries

Cloud Computing ServicesSmart Grid

Green-tech IndustriesElectric vehicles

Biotechnology

LED

Solar energyWindpower

LithiumSecondaryBattery

Biomass

MEMS

Fuel Cell Digital Home

3. Achievements3. Achievements

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Employment Population Growth

33,538

42,257

54,806

68,410

82,822

121,762

138,215

72,623

28,416

24,788

23,297

22,356

19,071

16,445

12,201

8,2756,670

6,4543,5831,216

130,577

96,642

96,293

101,76398,616 113,011

114,863

132,161129,512

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

2010, 06

No. of EmployeesNo. of Employees

YearYear

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5,9754.65%5,9754.65%

2,3061.72%2,3061.72% 32,397

24.13%32,39724.13%

40,76330.37%40,76330.37%

22,14917.45%22,14917.45%

29,35121.86%29,35121.86%

Educational Background

Ph.DM.S

B.SJuniorCollege

Others

High School

Total: 138,215(includes 3,972 foreign employees and 982 foreignhighly skilled employees )

Average age: 33Male: 57%Female: 43%

(2010. 06)

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R&D and Patents

79 74186 94 143 226

532 621

1021904

1260

2366

2991

2688

30263101

2343

28402726

18941 8 6 7

0

500

1000

1500

2000

2500

3000

3500

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 年

件數

4.6

5.46

5.45 4.8

4.2

5.65.9

7.1

5.4

4.2

8.98.5

6.8

5.8

6.8

5.9 5.9

8.2

0

1

2

3

4

5

6

7

8

9

10

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

年

%

HSP National Manu. Ind.

AveragedAveragedR&D/sales ratioR&D/sales ratioaccounts 6.02%accounts 6.02%from 1989from 1989--20082008where nationalwhere nationalmanufacturingmanufacturingindustry is 1.14%industry is 1.14%

HSP sharesHSP shares15% of patents15% of patentsapproved in theapproved in theUS domesticallyUS domestically

HSP R&D/Sales RatioHSP R&D/Sales Ratio

Number of Patents approved in the U.S.Number of Patents approved in the U.S.

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HSP’s Contribution to Taiwan’s Economy

1. Raise in income:•HSP contributes to 4.5% of Taiwan’s GDP•In 2008, the average income per household in Hsinchu City was 47,081USD—second only to Taipei in Taiwan; the average expense perhousehold in Hsinchu City was 33,226 USD—also second to Taipei.

2. Enhancement in regional prosperity:•The total consumption expenditure (from 1970 to 2009) in Hsinchu Cityand Hsinchu County reaches 30.37 billion USD•Increasing central and local tax revenue (from 2000 to 2008 the nationaltax revenue grew by 40%, Hsinchu City 154%, Hsinchu County 50%)•Driving the developments of local manufacturing and service industries3. Job Creation:•HSP takes up more than half of Hsinchu City’s employmentpopulation(55%)•In 2008, Hsinchu City’s labor participation is the highest ofTaiwan(60.8%), while the unemployment rate of Hsinchu County is thelowest (4.0%)

4. International Reputation4. International Reputation

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France: Sophia Antipolis

Canada: British ColumbiaQuebec Metro

USA:•Tri-Cities•San Jose•California St. Uni.•Economic Develop. Alliance for Business•Sandia, Arrowhead, & NMU

Brazil:•Uni. of RGande Do Norte•The Pontificia Universidade Catolica Do Rio Grande Do Sul

Sweden: Mjardevi, AB

Korea: Ansan TechnoparkSpain: Andalucía

Russia: Moscow State Uni.

Japan:Kitakyushu,Yokosuka

Thailand: ThailandScience Park

Turkey:HacettepeTechnopark

UK: Manchester

Vietnam: Hoa Lac Hi-tech Park

International Cooperation

25 sister science parks in 13 different countries

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Content of Cooperation

Hosting IASP (Int’l Association of Science Parks) andASPA (Asian Science Park Association ) conferences

Attending AURP (Association of University Research

Parks ) conferences

Experience exchanging and visiting

Business and technology partnering

Information sharing

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Superior Operation Model

Cluster effectIndustry and academia

collaboration

High-quality ofhuman resource

Infrastructure &one-stop services

R&D andoperational

model

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Why Successful Science Parks

•Competitiveness Points

1. Talent

2. Knowledge

Interaction

3. Venture Vitality

4. Creative Life

• Realization of IndustryClusters

1. Talent

2. Technology Diffusion

3. Enterprise Network

4. Startups

Interacting with Silicon Valley, the HSP has formed a solidfoundation in industry structure, entrepreneurship, R&Dmechanism, and venture systems and is reputed with itscompetent technology level, talent pool, and remarkableindustry clusters.

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