Experience in Scientific Park Development in

Jeng-Ywan Jeng Director, Professor and Dr. email: [email protected] Tel: +7-495--956-3786 P 39 Mobile: +7-916-592-2524 National Science Council Taiwan In Russia S&T Division in Taipei-Moscow Economic & Cultural CC National Taiwan University of Science and Technology Department of mechanical Engineering [email protected] 0 Jeng-Ywan Jeng, 鄭正元 Ph.D.

EducationEducation

Duration Degree Institution Department/Program Nation

The University of Liverpool, Graduate Institute of 1989/10~1992/7 Ph.D. Laser Material Processing Mechanical UK Centre Engineering

University of Manchester Graduate Institute of 1988/10~1989/9 M.Sc. Institute of Science and Mechanical UK Technology UMIST Engineering

Department of National Cheng Kung Taiwan 1981/9~1985/6 BS Mechanical University Tainan Engineering 1 Jeng- Experience Duration Position Institution Department/ Program Science & Technology Division in 2010/1~now Director National Science Council Russia/ Moscow Past Experiences Preparatory Office of Patent 2009/8~2010/1 Director Graduate Institute

2008/12 EU-FP7 National Contact Point PI & CEO National Taiwan University ~2010/1 of Science and Technology Office -Taiwan 2007/8~2009/7 Dean NTUST Office of R&D Department of Mechanical 1992/8~till now Associated /Professor Engineering University of California, ECE Dept., Multidisciplinary 2001/6-2002/2 Visiting Scholar Santa Barbara Optical Switch Technology Center

2008/7-2008/8 University of Cambridge UK Institute for Manufacturing, Visiting Scholar Department of Engineering

2005/2~2007/1 Director General TECO Corp. Teco Group Research Institute Outside Director Creative Sensor Inc. 2004-2007/1 Auditor TECO Electro Devices Co., Ltd. Outside Director Lien Chang Electronic 2 Research Interest

• Innovation and Technology Transfer of Patent and Know How • Opto-Mechatronics • Femto Second laser Material Processing and Applications • Rapid Prototyping and Rapid Tooling • Laser Material Processing • Process Automation

3 Administration

4 ContentContent

1. General Information 2. Industries 3. Development Status 4. International Reputation

5 1.1. General General Information Information Taiwan’s Leading Products & Industry Capacities

2009 Global Market Industries Share (%) Rankings IC Foundry 66.7 1 e-Paper 91.1 1 Mask ROM 97.2 1 IC Design 25.8 2 DRAM 15.7 2 TFT LCD(>10”) 35.3 2 TFT LCD(<10”) 26.4 2 OLED 34.1 2 LED 25.5 2 Data source：ITRI（2010/04） 7 No. 1 in Global Industry Cluster

WEF’s top 6 rankings of industry cluster competitiveness Nations 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 3 Data from: WEF (World Economic Forum Annual Report)

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

8 Science Parks in Taiwan

(Hectares) HSP Startup of HSP: Yilan (71) Longtan (107) (2004) Dec. 15, 1980 (under construction) Biomedical (38) (2005 ) North Managed by: Hsinchu (653) (1980) Science Park Jhunan (123) (1999) (350) (2003) Administration, CTSP National Science Holi (255) (2006) Chung Hsing (277) (under construction) Council Taichung (413) (2003) Erlin (635) (under construction) Central Huwei (97) (2006) STSP Tainan (1,038) (1996) Kaoshiung (570) (2001) South Total: 4,627 Hectares 9 HSPHSP in in 1980s 1980s Main Park Park Waste Entrance Phase Administration Water Resettlement Housing I Plant Area Units Power Plant

10 HSPHSP at at Present Present Synchrotron Radiation National National Park Park Science Research Chiao Tung Tsing Hua Park Housing Residential Park Center Life Units University University Area Hub Museum

Science Park Administration

--NCTU --NTHU 11 Why Science Parks

High-tech High-tech Talent Investment Rooting High-tech Industries

12 Management Model

Land owned by State Land or standard factories are available for rent Laisser faire of companies’activities One-stop services from government

13 Infrastructure

Water, power, telecom, road, etc. Standard fabs and housing units Wastewater treatment plant 24H custom clearance services Banks, clinics, gas stations Bilingual school, recreation facilities

14 IncentivesIncentives

Corporate income tax: 17% R&D expenditure tax deduction up to 15% without exceeding 30% of corporate tax to be paid No import duty for equipment and materials R&D grants and on-job training subsidiary

15 One-Stop Services

The Administration is authorized to offer all necessary services for Park tenants:

MOEA,MOEA, MOF, MOF, CLA, CLA, MOI, MOI, MOE MOE Authorization

Investment R&D grant Construction Foreign labor Business reg. Labor safety Security Bilingual school Fire-fighting Trade license Tax break Environmental protection

Support Custom, banks, Water, power, safety, post office, clinics, environmental protection, shipping, etc. transportation commissions of Park Association

16 National Labs

National Applied Research Laboratories (NSC) 1. National Nano Device Laboratories 2. Instrument Technology Research Center 3. National Space Program Office 4. National Center for High-performance Computing 5. National Chip Implementation Center

National Synchrotron Radiation Research Center (NSC) National Health Research Institutes (Department of Health) Animal Technology Institute Taiwan (Council of Agriculture)

17 2.2. Industries Industries Annual Revenue and Industry Changes

Million USD % 80.00 PC-Driven IC-Driven Innovation 40,000  34829 PC 34503 70.00 35,000 32552 31964 30765 29803 60.00 30,000 IC IC 27609 24973 50.00 PC 25,000 TeleCom 20387 20454 40.00 20,000 OptoElec 16916

30.00 Machinery 1391513693 15,000 11565 BioTech 10940 Opto 20.00 Telcom 10,000 6706 4810 10.00 29033406 5,000 173721242443 535 866 0.00 0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

* 2001  U.S.’s 911 and Japan’s recession caused global economy to revise 35% * 2003  Outbreak of SARS * 2000-2009 annual revenue of HSP * 2008-2009  Global financial tsunami contributes to 9% of domestic manufacturing revenue 19 IndustryIndustry Revenue Revenue Allocation Allocation

ICs Computer 67.6% 6.5% Telecommunication 2.8% Optoeletronics 20.7%

Precision Machinery 1.8% Others Biotechnology 0.4% 0.2%

Total Sales Revenue： 17.5 Billion USD (2010.01-06) (The total sales revenue of 2010 is estimated to be 37 billion USD)

20 2010.2010. 01 01--0606 Revenue Revenue

Billion USD Industries Revenue IC 12

Computer & Peripherals 0.1

Telecommunication 0.4

Opto-electronics 3.6

Precision Machinery 0.3

Biotechnology 0.1 (2010.06) 21 IC Industry

No.No. of of Tenants: Tenants: 198 198 Equipment Chemical *1 *17

IC Design Mask IC EDA *5 (Fabless) Manufacturing *129 *5 *17 DNP,TMC

Wafer IC Packaging Leadframe *6 *11 *3

Testing *3

(2010.06)

22 Image Display Industry

u ITO thin Photo-lithographic Backlight Optical p Driver IC s film mask module film t r e a m m i d TFT LCD E-paper Mirasol LCoS panel OLED s t r e a m d o

w Front/back LCD Digital N/B LCD n projector projector camera s t r e a m

23 LED/LD Industries

Upstream Midstream Downstream

Crystal Epi wafer subsystem application grain Traffic LED/ signal/ backlight billboard LED

LD Epi Wafer Chip System LD module

24 Solar Energy Industry

太陽能電 PolysiliconPolysilicon WaferWafer 池 CellCell ModuleModule SystemSystem

25 Biotech Industry

AgriculturalAgricultural HealthyHealthy BiomedicalBiomedical Medicine BiotechnologyBiotechnology FoodFood Medicine MaterialsMaterials *Seedling *Food *Material medicine *Biotech materials *Plant protector supplement *Medicine diffusion *Plant fabs *Functional food *New medicine

*Analytical Tests *Biomedical *Medical Kits *Medical Devices Wastewater Treatment SupportingSupporting EnvironmentalEnvironmental TestingTesting Kits Kits BiotechnologyBiotechnology ProtectionProtection Biotechnology Biotechnology 26 RenownedRenowned Tenants Tenants from from A to Z !!

27 Foreign Tenants

Germany (2010.06) Belgium Japan Switzerland U.S.A. Singapore

• •LTI DRIVES •SHIN-ETSU OPTO • •SHIN-ETSU HANDOTAI • •RORZE TECHNOLOGY •KINGSTON •DENMOS TECHNOLOGY •DUPONT TAIWAN LIMITED •IMEC •YUASA-DELTA •SEMATECH •HOYA •QUALCOMM TAIWAN • •INVENSENSE TAIWAN •ULVAC •IMPAX LABS •SUMIICA •KEST •PHOTRONICS •INNOMEDIA •DOW CHEMICAL •STATS CHIPPAC

28 Potential High-tech Industries

Solar energy Electric vehicles Wind Green-tech Industries power

Cloud Computing Services Smart Grid Lithium Secondary Fuel Cell Battery Digital Home

LED Biomass

MEMS Biotechnology 29 3.3. Achievements Achievements Employment Population Growth

No. of Employees 160,000 138,215 140,000 132,161 129,512 130,577 120,000 114,863 121,762

98,616 113,011 96,642 100,000 101,763 96,293 82,822 80,000 72,623

68,410 60,000 54,806

42,257 40,000 28,416 33,538 23,297 19,071 20,000 12,201 24,788 6,454 22,356 3,583 1,216 16,445 8,275 0 6,670 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 6 198 198 198 198 198 198 198 198 199 199 199 199 199 199 199 199 199 199 200 200 200 200 200 200 200 200 200 200 0, 0 201 Year 31 Educational Background

Others Ph.D M.S 5,9755,975 2,3062,306 High School 4.65% 1.72% 32,39732,397 4.65% 1.72% 24.13% 29,35129,351 24.13% 21.86%21.86%

Junior B.S College 40,76340,763 30.37%30.37% 22,14922,149 17.45% 17.45% Average age: 33 Total: 138,215 Male: 57% (includes 3,972 foreign employees and 982 foreign Female: 43% highly skilled employees ) (2010. 06) 32 R&D and Patents

HSP R&D/Sales Ratio % 10

9 8.9 8.5 Averaged 8 8.2

7.1 R&D/sales ratio 7 6.8 6.8 accounts 6.02% 6 6 5.9 5.8 5.9 5.9 5.4 5.4 5.6 5.4 5 5 from 1989-2008 4.6 4.8 4 4.2 4.2 where national 3 manufacturing 2 industry is 1.14% 1

0 年 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 HSP National Manu. Ind. Number of Patents approved in the U.S. 件數 HSP shares 3500

3101 15% of patents 3000 2991 3026 2840 2688 2726 approved in the 2500 2366 2343 US domestically 2000 1 8 6 7 1894 1500 1260 1000 1021 904 621 500 532 226 186 94 143 0 79 74 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 年 33 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 47,081 USD—second only to Taipei in Taiwan; the average expense per household 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 City and reaches 30.37 billion USD •Increasing central and local tax revenue (from 2000 to 2008 the national tax revenue grew by 40%, Hsinchu City 154%, Hsinchu County 50%) •Driving the developments of local manufacturing and service industries 3. Job Creation: •HSP takes up more than half of Hsinchu City’s employment population(55%) •In 2008, Hsinchu City’s labor participation is the highest of Taiwan(60.8%), while the unemployment rate of Hsinchu County is the lowest (4.0%)

34 4.4. International International Reputation Reputation International Cooperation

25 sister science parks in 13 different countries

Canada: British Columbia Russia: Moscow State Uni. Quebec Metro UK: Manchester

France: Sophia Antipolis Sweden: Mjardevi, AB Korea: Ansan Technopark Spain: Andalucía USA: Turkey: Japan: •Tri-Cities Hacettepe Kitakyushu, •San Jose Technopark Yokosuka •California St. Uni. •Economic Develop. Alliance for Business Thailand: Thailand •Sandia, Arrowhead, & NMU Science Park

Vietnam: Hoa Lac Hi-tech Park

Brazil: •Uni. of RGande Do Norte •The Pontificia Universidade Catolica Do Rio Grande Do Sul 36 Content of Cooperation

Hosting IASP (Int’l Association of Science Parks) and ASPA (Asian Science Park Association ) conferences Attending AURP (Association of University Research Parks ) conferences Experience exchanging and visiting Business and technology partnering Information sharing

37 Superior Operation Model

Infrastructure & one-stop services

R&D and High-quality of operational human resource model

Cluster effect Industry and academia collaboration

38 Why Successful Science Parks

•Competitiveness Points • Realization of Industry Clusters 1. Talent 1. Talent 2. Knowledge 2. Technology Diffusion Interaction 3. Venture Vitality 3. Enterprise Network 4. Creative Life 4. Startups

Interacting with , the HSP has formed a solid foundation in industry structure, entrepreneurship, R&D mechanism, and venture systems and is reputed with its competent technology level, talent pool, and remarkable industry clusters. 39 40