Foreword International Leadership and Global Forerunner in Technology

After 2009 global financial tsunami, the Central Science Park (CTSP) experienced rapid growth in overall revenues in 2010, rising from NT$ 240 billion (US$ 7.643 billion) to over NT$ 360 billion (US$ 11.465 billion); the rise is more than 50%. Such remarkable results were made possible by the diligence of our colleagues and Park enterprises, who created an economic miracle for the Park together.

President Ma Ying-Jeou mentioned, during his New Year speech at the 100th anniversary of R.O.C.(Taiwan), that Taiwan would enter a period of Ten Golden Years. In order to achieve plans of the government in the Ten Golden Years, especially in the post-ECFA era, CTSP is fully prepared to fulfill the third and fourth stage development plans for CTSP, accelerate assessment of environment evaluation, harness the potential of the Ten Golden Years, and spur comprehensive economic and employment growth. We will also begin contracting out processes so that CTSP can stand firm in central Taiwan and also explore global markets. Simultaneously, we will actively introduce Trillion-Dollar Emerging industries, such as green energy, communication, and biotechnology. Currently, the semiconductor companies in the Park have already led the investment in solar power as part of the green energy industry; which consequently brings in related subcontractors into the Park and adds advantages to CTSP.

In addition, CTSP will introduce Taiwan's first Advanced Research Park, thus upgrading technology in Taiwan. The Advanced Research Park will eventually become an integrated multi- functional park with administrative services, cultural innovation, and high-tech R&D in the future. We hope to attract industrial research agencies with foresight and research process without pollution to encourage dynamic growth of technology industries in the park. These unprecedented prospective planning is intended to result in distinguished records of pollution-free industrial developments.

As the leader of central Taiwan high-tech community, CTSP has always been committed to its social responsibility of environmental protection. In 2010, we faced severe challenges of environment assessment for our third stage development for Chising Park and the fourth stage development for Erlin Park. CTSP hopes to achieve a win-win solution for Taiwan's economy and environment, and proceed at a full speed for CTSP's development, expansion, and contracting as CTSP takes another major step towards transforming into an international technology park. Based on the good foundation, CTSP hopes to attract more investment and development of favorable industries. Facing the challenges of environmental assessment, we are always on guard and prepared. At the same time, we have taken the initiative to improve CTSP's international visibility, provide advantageous development environments for high-tech industries, and continue to lead innovations for the high-tech industries among central Taiwan.

Director General

March 2011 CENTRAL TAIWAN SCIENCE PARK 05 CTSP Leadership & 19 Consolidation & Technological Foresight Environment Invigoration Founding of CTSP Lifestyle Functions & Employee Recreation CTSP Overview Comprehensive & Convenient Services 09 CTSP Foundation & Community Outreach & Local Services International Reputation Safety Enhancements & Environmental Protection Teamwork & Distinguished Records International Ties & Interdisciplinary 27 Coexistence of the Four Cooperation Aspects & Sustainable Contracting & Creating New Projects Development 15 Gathering Elites & Simultaneous Consideration for both Fostering Talents Environment and Economy CTSP Reputation & Prosperity Talents Fostering & Personnel Training Park Education & Future Elites 32 Entering 2011 & Industrial and Academic Cooperation & Retrospect of 2010 Substantial Improvement Plans Diligence of 2010 & Prospects for the Employment Growth & Economic Centenary Progress Major Developments of 2010 5 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

CTSP Leadership & Technological Foresight

Founding of CTSP

On September 23, 2002, the Executive Yuan approved the Preparation Plan for the Central Taiwan Science Park under the authority of the National Science Council. It is the very first science park in Taiwan that the public construction and the manufacturing plants for Park enterprises were built simultaneously. It took only 10 months and 5 days from plan approval to commencement of construction. By July 28, 2003, the park was open to enterprises, resulting in unprecedented records and efficiency for the Park. On June 27, 2005, Houli Park was approved, and by March 31, 2006, the site was open to enterprises, making for another development record of 9 months and 4 days. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 6 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

On October 27, 2004, AU Optronics Corp. was officially opened for business in CTSP. It took 1 year and 3 months from plant construction to operation, making for a new page of historical records in the Park's developments. By December 2010, the Park has approved a total of 108 enterprises whose combined investments have totaled to NT$ 2 trillion (US$ 63.694 billion). 79 of these Park enterprises now have Longtan fully operational plants. At this point, CTSP's clusters have begun to define their Biomedical Science Park Science Park reputation. Also, through ties with enterprises in Hsinchu Science Park and Southern Jhunan Taiwan Science Park, CTSP became a key player in shaping Taiwan as a high-tech Science Park Yilan Hsinchu Science Park island with a reputable distinction in the world. Tongluo Science Park Science Park Hsinchu Airport Houli Science Park Organization Taichung Taichung Science Park Harbor Science Park On January 26, 2007, the CTSP Administration Erlin was restructured from "the Central Taiwan Science Science Park Advanced Research Park Park Development and Planning Office" to "Central Huwei Taiwan Science Park Administration, National Science Science Park Central Taiwan Council, Executive Yuan" 5 divisions and 4 offices were established in the agency, including the Investment Science Park Division, Environment and Labor Affairs Division, Science Park Business Division, Land Development Division, and Construction Management Division, and the Secretariat Southern Taiwan Science Park Office, Personnel Office, Accounting Office, and Civil Science Service Ethics Office, containing a total of 140 staffs and a budget for 117.

Science Park Distribution 7 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT CTSP Overview

After successful and rapid introduction of the international-scale flagship plants of AU Optronics, we have also been diligently attracting domestic and foreign enterprises for the midstream and the downstream companies of the supplying chain. Available lands in the parks are already in high demand. By now, CTSP has entered its fourth stage of expansion with steady results, including 413 hectares in Taichung Park, 97 hectares in Huwei Park, 255 hectares in Houli Park, and 631 hectares under construction in Erlin Park, as well as the Advanced Research Park (ARP) planned and under development by the CTSP Administration, National Science Council. ARP project is previously under the approval and planning of the Council for Economic Planning and Development, Executive Yuan. Plans for the Advanced Research Park has been approved by the Executive Yuan on November 19, 2009, and urban planning was promulgated on October 15, 2010. The Park contains 259 hectares of space. Total development area of all Parks is 1,655 hectares.

Taichung Science Park New Center of Prosperity for Central Taiwan

The Taichung Park is situated at the border between Daya District and Situn District in Taichung City, and contains 413 hectares. The public road network is connected to National Highway No. 1, National Highway No. 3, and Provincial Highway No. 74. The site is 9.2 km away from Taichung High Speed Rail station, and is also close to Taichung Harbor and Taichung Airport, which provides convenient transportation systems. The site is highly convenient for international corporate interaction and product sales. Also, geographical advantages, pleasant weather, and comprehensive urban amenities in nearby districts all Taichung Science Park contribute to the best environmental appeal and incentives for attracting high-tech industries and providing residences for high-tech professionals.

The overall core planning foundation is tailored to turn CTSP into a sustainable green technology park that is well-integrated with the local area.

Huwei Science Park Emerging High-Tech Star

Huwei Park is located in northwest area of Huwei Township in Yunlin County. With an area of 97 hectares and being close to the High Speed Rail station District, it can incorporate the high Huwei Science Park speed rail amenity in the future and become a green, healthy, multifunctional, and highly desirable living space in the future. Prosperous industrial developments can be expected in the near future.

Houli Science Park Technological Metropolis of Tomorrow

Houli Park, a third-stage CTSP development area, is located in the Houli District of Taichung City. Houli Park is roughly 11km away from Taichung Park and is close to the Fengyuan urban commercial area. Its 255 hectares area includes 134 hectares of Taiwan Sugar Corporation's Houli Farm, 112 hectares of chising Farm, and 9 hectares of roads Houli Science Park linking the two main areas. The two sites are located respectively in northern and southern sides of the urban planning zones of Houli District. They incorporate plans and conditions from the development zones of Houli District, and also inherit nearby industrial and recreational resources to shape a suburban landscape for the Park, providing for necessary production space for Park enterprises.

On January 21, 2010, the environment assessment results of the Chising Site were rejected by the Supreme Administrative Court. Subsequently, developments were suspended on July 30, 2010. At that time, public construction in the Park was suspended in accordance with the court ruling. A seamless continuation strategy was adopted so that, after resubmitting Erlin Science Park the environment impact report to be reviewed by the Environmental Protection Administration, which was officially completed on September 2, public construction could be resumed in the Chising Site on September 18. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 8 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Erlin Science Park New Site for Optoelectronics Industries

The Erlin Science Park is being developed 6.3 kilometers to the west of the Yuanlin interchange on National Freeway No. 1 and south of the planned route for the extension of Provincial Highway No. 76. The area encompasses 631 hectares of land, much of its formerly part of the Taiwan Sugar Corporation's Wanxing and Dapaisha farms.

The optoelectronics industry is the main industry to be brought to the Park; in the future, the upper, middle, and downstream links in this industrial chain will combine with the semiconductor, precision machinery, biotechnology, green energy and other emerging industries to form a comprehensive science park. This Park can provide approximately 350 hectares of park industrial land for commercial use by Park enterprises. Assessment of development plans was completed in 2009, and land use permits were acquired in 2010. Currently, I-Ming Sanitary Materials has entered as our Park enterprise. Meanwhile, the Executive Yuan is in the process of adding changes to development plans and environment reports to account for the preservation of Hsiangse Village and Wanhe Village, and instructions on converting wastewater pipes to maritime disposal procedures. These changes are expected to be finalized by 2011. The wastewater disposal project is expected to complete by 2013. The Park's public constructions are expected to complete by 2017.

Advanced Research Park

Research and Development Center in Central Taiwan Advanced Research Park

The Advanced Research Park is located at the northwest of Nantou County, and is 4km away from Caotun and 6km away from Nantou City. It is inside the urban planning zone boundaries of old government districts, Nantou County (includes the Southern Neilu area), for a total park area of 259 hectares.

This project is one of the "iTaiwan 12 Development Projects" that are of top priority in the government's policy platform. The Executive Yuan announced that the site will be developed into a cultural innovation and advanced technology research park. After the Executive Yuan approved the CTSP Administration's preliminary plans, the development plans were submitted to the Executive Yuan for approval on November 19, 2009. In the

future, the site will be developed into a multifunctional park that incorporates To High Speed Rail Taichung Station To Caotun integrated cultural innovation and service, administrative service, and System Interchange research and development (R&D) units or agencies in mechanical, energy, environmental, and other industries. 14 3 ʨ 63 14 3 Urban planning for this project has been promulgated on October 14 63 ɻ ᮬ 15, 2010, and water and electrical usage plans have also been approved in 2010. Currently, the project is undergoing environment assessment 14 3 Caotun ᮬ Hushan Township and cultural property preservation evaluations, which are expected to 3 14 ʨ Chunghsing be completed before the end of 2011. We are also in the process of Taiwan High System Speed Rail Interchange 14 acquiring permits to begin preliminary park improvement projects for park ʨ Advanced 76 Nantou Research Park lands that will allow research units to enter the site and commence with Interchange construction. The entire park is expected to be fully developed by 2019. 3 ༼15

14 In terms of introducing enterprises, agencies that have applied to become ʨ 3 ᮬ Park enterprises include the Central Taiwan Innovative Industrial Research Nantou City and Development District of the Industrial Technology Research Institute, 3 Emerging Information Technology Research Institute of the Institute for

Information Industry, the Low Carbon Energy Technology Center of the 3

Atomic Energy Council's Institute of Nuclear Energy Research, Academia To Nantou City To Mingjian Town- To THSR Chiayi Downtown ship Interchange Historica, and Cultural Innovation Research and Development Institute of Station

( ߧጊ׆আ͗᜺CECI) the Council of Cultural Affairs. Location of the Advanced Research Park 9 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

CTSP Foundation & International Reputation

Teamwork & Distinguished Records

By 2010, a total of 166 enterprises had applied to set up operations in CTSP, with 108 of them effectively approved. Total approved investments have exceeded NT$ 2 trillion (US$ 63.694 billion). Park enterprises include 31 in optoelectronics, 36 in precision machinery, 16 in biotechnology, 8 in integrated circuits, 1 in communications, and 10 in other industries. The industrial clusters are gradually taking shape and utilizing their existing commercial advantages. Also included are 12 research institutions and incubation centers, providing for ample industrial R&D capacities. By the end of 2010, 79 Park enterprises, 8 research institutions, and incubation centers have begun operations. Other Park enterprises have also built plants and began operations.

166 Companies Companies attracted to the Park 155 138 122 104 86 64 37

'03 '04 '05 '06 '07 '08 '09 '10 year

Table of Investment 64,768 Statistics 57,296 54,917 54,563 54,990 US$ 42,127 Million

24,382

13,554

'03 '04 '05 '06 '07 '08 '09 '10 year CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 10 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

108 Companies approved for entry into the Park (Year End 2010) 33.3%³ Precision machinery 36 28.7%³ Optoelectronics 31 14.8%³ Bio-tech 16 9.3%³ Other park businesses 10 7.4%³ Integrated circuits 8 11,545 5.6%³ Computer & peripherals companies 6 US$ Million 0.9%³ Communications company 1

9,115 8,462 7,682 The Revenues for CTSP totaled at US$ 11,545 million in Revenue 2010, a 50% growth from 2009, indicating a rapid recovery Statistics from and exceeding of the financial crisis levels. Evidently, 5,685 under the government's multitude of stimulus policies and the diligence of Park enterprises across multiple industries, we were able to achieve a strong recovery.

1,939

'05 '06 '07 '08 '09 '10 year Of CTSP's total revenues for 2010, most of the revenues were concentrated in the optoelectronics industries, for a total of US$ 8,048 million Operational Revenues across and 69.7% of total revenues. Integrated circuits contributed the next highest All Industries in 2010 portion of revenues, at US$ 3,066 million and 26.5% of total revenues. The revenues for precision machineries totaled at US$ 364.3 million and 3.2% 3.2% 0.6% of total revenues. Computers and peripherals, biotechnology, and other industries contributed US$ 67.2 million and 0.6% of total revenues. 26.5% In 2009, only 66 Park enterprises commenced operations in CTSP. In 2010, however, there was considerable growth. An additional 13 69.7%³ Park enterprises have commenced operations. By 2010, a total of 79 Park enterprises have been in operation, becoming a driving force for related domestic industries. Evidently, the development of CTSP yielded Optoelectronics Precision machinery considerable returns, greatly increasing economic growth and employment US$ 8,048 million US$ 364.3 million for the great Taichung area. Integrated circuits computer & peripherals companies/ US$ 3,066 million Bio-tech other industries contributed US$ 67.2 million 11 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

International Trade & Steady Growth

According to 2010 export statistics, exports to Asia totaled at US$ 7,286.72 million, US$ 50.61 million for North America, US$ 298.12 million for Europe, US$ 130.76 million for the Middle East, US$ 6.24 million for Central America, and US$ 10.13 million for South America, for a total of US$ 7,784.14 million. Evidently, exports to Asia have risen steadily over the years, primarily in the optoelectronics industry. Because Park enterprises have gradually completed plant construction, plant-related equipment imports have gradually decreased. Imports and exports of 2010 were primarily focused on Asia, the Middle East, and Europe. Trade volumes are detailed in the following charts.

2010 Import and Export Volumes in 8 Continents Unit: US$ Million

Total Value of Trade Growth from Growth from Growth from Exports Imports Total Value of Trade Continent previous year (%) previous year (%) previous year (%)

Asia 7,286.72 55.56 2,309.07 52.58 9,595.80 54.83 North America 50.61 -40.4 326.17 -3.15 376.78 -10.65 Europe 298.12 257.43 423.98 188.04 722.10 213.13 Middle East 130.76 27.86 2.45 104.38 133.22 28.75 Central America 6.24 56.79 1.53 155.48 7.77 69.74 Africa - -100 1.24 104.38 1.24 11.84 South America 10.13 126.47 0.64 - 10.76 110.69 Oceania 1.56 56.79 0.60 - 2.17 119.35 Total 7,784.14 56.79 3,065,68 53.29 10,849.84 55.78

2010 Import-Export Statistics of Six Major Industries Unit: US$ Million

Total Value of Trade Growth from Growth from Growth from Exports Imports Total Value of Trade Industries previous year (%) previous year (%) previous year (%) Integrated circuits 1,545.25 51.05 833.85 168.27 2,379.11 78.36 Optoelectronics 6,169.84 56.91 2,135.82 30.55 8,305.67 49.16 Computer & 11.24 1257.69 44.33 6.34 55.57 30.71 peripherals companies Precision machinery 55.35 536.63 49.14 349.85 104.49 432.62 Bio-tech 0.80 - 0.22 -56.25 1.02 100.00 Other park businesses 1.66 1633.33 2.32 7,200.00 3.98 3,025.00 Total 7,784.14 56.79 3,065.68 53.29 10,849.84 55.78

Industry Distribution & Creating Complete Supply Chains

By the end of 2010, CTSP had introduced 31 optoelectronics enterprises, with a planned investment of US$ 28,382 million in total. Enterprises include AU Optronics, Taiwan Corning, Taiwan Nitto Optical, JSR Micro Taiwan, Huga Optotech, High Power Opto, NexPower Technology, and Genius Electronic Optical. As these high profile optoelectronics enterprises and upstream material suppliers enter CTSP, they form a complete upstream, midstream, and downstream optoelectronics supply chain for Taiwan.

Also, precision machinery had always been a major feature of central Taiwan's industries. Currently, 36 enterprises have entered CTSP with a planned investment of US$ 360.5 million in total, making them the largest group of Park enterprises by industry. They primarily manufacture production equipments for optoelectronics and integrated circuits, parts, and machine tools, which all help to improve the precision of processed goods and increase added value of the above-mentioned products. Also, as they are local suppliers of optoelectronics and integrated circuit production equipments, they can help to decrease production costs, increase industrial competitiveness, and become a truly reputable precision machinery center.

There are 8 semiconductor companies in the Park, including TSMC, Winbond, ProMOS Technologies, Rexchip, and Applied Materials Taiwan, with a planned investment of US$ 35,612.68 million in total. The 5 12-inch wafer manufacturing plants of Winbond, ProMOS, and Rexchip have started production in the Park. In the future, the major integrated circuit manufacturers will expand their 12-inch wafer production capacities and upgrade production technologies, which will make CTSP a major production center of integrated circuits for the world. These goals are expected to be realized in the near future. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 12 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

We have successfully attracted a total of 16 biotechnology enterprises, including PharmaEssentia, Microware Precision, Synmosa Biopharma, Adimmune, Orient Europharma, and Yusheng Pharmaceutical, with a planned investment of US$ 146.53 million in total. Products include vaccine manufacturing, medical equipments, and testing materials. Biotechnology resources in the central areas can be integrated to drive forth new hope for emerging industries.

In order to provide operation, management, and technical services for high-tech industries, CTSP currently contains 10 park service entities. There are 6 gas suppliers, including Air Liquide Far Eastern, United Industrial Gases Co., San Fu Gas Co. (plants in Taichung, Houli, and Huwei), and BOC Lien Hwa Medical Gases. International logistics management firms have entered CTSP to handle supply chain storage and transportation. Canon Semiconductor also established service outlets in the Park to provide maintenance services for equipments used for manufacturing integrated circuit and flat screen displays.

In terms of computers and peripherals, there are 6 Park enterprises, including Fomex Technology, Fulltech Fiber Glass, Bolymin, and Daching Green Energy Solutions. 1 communications enterprise exists in the Park, which is Weturn Telecommunications. There is also 1 digital contents provider in the Park, which is Info-Link Services. Currently, the number of computer peripherals and digital contents enterprises in central Taiwan who intend to join the Park is steadily increasing.

In terms of research agencies and incubation centers, in order to promote industrial-academia cooperation policies and assist with commercial and technical developments of Park enterprises connected to CTSP, several major institutes in central Taiwan have applied to enter CTSP to utilize their existing staff, equipments, research capacities, and technical resources to proactively engage in assisting small and medium business in the improvement of technologies. Currently, schools with incubation centers in the Park include 8 universities: National Chung Hsing University, Chaoyang University of Technology, Feng Chia University, National Chi Nan University, National Chin-Yi University of Technology, National Yunlin University of Science and Technology, National Formosa University, and Mingdao University. Furthermore, the Taiwan Development Institute, National Center for High-Performance Computing, Industrial Technology Research Institute, and Institute for Information Industry also entered the Park, greatly expanding CTSP's R&D capacities. The emergence of major research communities in central Taiwan can be expected in the near future.

Overseas Chung Shan Chinese Medical University University National Industrial Chaoyang National Formosa University of National Taiwan College University Technology Technology Changhua of Physical Research University of Education Institute Education National Yunlin Central Taiwan National China Mingdao University of Hsiuping University of Taichung Medical University Science and Institute of Science and Institute of University Technology Technology Technology Technology

Chung Chou Asia TransWorld Institute of University Taiwan Institute for University Development Information Technology Institute CTSP Industry Ling Tung Providence Tunghai Hungkuang University University University University

National National National Taichung Chin-Yi Chung Chienkuo University of Hsing University of National Technology Education (NTCU) Technology University Center University Nan Kai for High- National Dayeh University of Feng Chia Performance Chi Nan University Technology University Computing University

Academic Research Agency Support Network in CTSP 13 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

2010.7.22~25 Biotechnology Show 2010.8.18 Visit from Yokosuka Research 2010.12.14 The Japanese Kitakyushu Park, Japan Foundation for the Advancement of Industry Science and Technology delivers a lecture on the topic of shaping Asia as a low-carbon society for the CTSP Administration

International Ties & Interdisciplinary Cooperation The focus of efforts to promote international cooperation includes facilitating co-operation between domestic and foreign companies, exchange visits, and solicitation of international investment, and joining worldwide science park associations. It is hoped that international and technical cooperation and technology transfers will further strengthen industries within the park and help them to develop internationally.

After joining the International Association of Science Parks (IASP) and Asian Science Park Association (ASPA), the CTSP Administration proactively participated in many international conferences. Delegates were sent to 2010 annual IASP conference held in Daejeon, South Korea, from May 23 to 29, 2010, as well as ASPA's joint 2010 IASP-ASPA annual conference held in Perth, Australia from November 21 to 28, 2010. Furthermore, CTSP also participated in the 5th ASPA leadership conference held in Jordan from March 15 to 21, 2010, and successfully acquired the right to host the 6th ASPA leadership conference, clearly demonstrating CTSP Administration's ambition and determination in proactively participating in international cooperation.

Also, in order to continue expanding international cooperation, present CTSP as a viable commercial venture, and eventually internationalize CTSP, we have made several remarkable achievements. During our participation in the 2010 IASP annual conference in Daejeon, South Korea, Director-General Yang Wenke of the CTSP Administration signed a memorandum of understanding with Ms. Jane Davies, CEO of Manchester Science Parks (MSP). By absorbing British contracting and operation experience, we hope to forge the Advanced Research Park into a foundational base that will eventually transform central Taiwan's industries and become a knowledge- based park capable of international leadership and also possessing local characteristics, which will ultimately improve Taiwan's innovation and research capabilities. On August 18, 2010, Director-General Yang Wenke of the CTSP Administration also signed a memorandum of understanding with Shingo Ohmori, Vice President of Japan's Yokosuka Research Park (YRP) R&D Promotion Committee.

7 years after founding of CTSP, 10 sister parks have been created, while we devoted considerable effort in holding international conferences. We hope that, through building international exchange platforms, we can exchange information, technologies, and share experiences, and that, through long term mutual cooperation relationships, we can encourage regional economy and trade cooperation and create opportunities together. Such endeavors can also increase CTSP's international visibility, improve the technological innovation and research capabilities of Park enterprises, and ultimately shape CTSP into the most competitive international science park.

2010.5.25 MSP from England Signs an MSP Signs 2010.8.18 Japan's YRP R&D Promotion 2010.11.25 Group Photograph of CTSP an MOU with the CTSP Administration Committee Visits CTSP and Signs an MOU Administration Delegates during the 2010 with the CTSP Administration Joint IASP-ASPA Annual Conference CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 14 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

were issued in 2010 and published in major media outlets across Contracting & Creating New Taiwan, resulting in widespread promotion effects and responses. Projects Furthermore, we capitalized on CTSP features published in popular domestic periodicals to be shared to domestic and foreign Attracting Domestic and International enterprises. During the 7th CTSP anniversary held on July 21, a Investment with Proactive Strategies folk song concert was held, and residents from local communities To capitalize on the 4th stage development of CTSP's Erlin around CTSP were invited to invigorate the celebration. Park, the CTSP Administration continued to expand Park enterprise Also, we actively participated in many major exhibits in seminar sessions. On July 15, 2010, a seminar was held by CTSP in Taiwan, including the International Opto-Electronics Windsor Hotel Taichung, inviting the participation of major domestic Exposition, Bio Taiwan, Taiwan Nano Exposition, and Southern manufacturers and attracting manufacturers' understanding and Taiwan Biotechnology Exposition, which allowed CTSP to fully confidence in CTSP's investment environment, thus to achieve the demonstrate the operational results of Park enterprises and objective of attracting high-tech enterprises to invest and establish establish a positive image for CTSP. plants in CTSP. We are also committed to attracting related In terms of multimedia public relations, we have completed industries to form industry cluster effects and invigorate economic several short films: "Introduction to CTSP" (new edition), "Video and trade activities in Taiwan, as well as enhancing CTSP's industrial of Embrace the World – from Erlin" and "CTSP Image Video." We competitiveness. Also, in order to attract foreign high-tech enterprises have also published the "CTSP Introduction Brochure," "Brochure to CTSP, representatives were sent to South Korea between May of Embrace the World – from Erlin," "Map of CTSP's Taichung 23 and 29 of 2010 and China between October 18 and 23, where Park," and "2009 Annual Report (Chinese & English Editions)." We they negotiated with relevant optoelectronics and biotechnology made our publications available in several languages for referance enterprises and invited them to invest manufacturing resources in by high-tech enterprises around the world, and also as potent and CTSP with proactive strategies. multipurpose sales devices for attracting high-tech enterprises to invest in CTSP.

CTSP Newsletter & Ongoing CTSP Information

The CTSP Newsletter was founded on August 5, 2004, and 75 issues have been published by the end of 2010. Each issue reported the newest and most important activities in CTSP, including global interaction, foreign guest visits, government policy overviews, technical conference reports, revenue statistics, information on Park enterprises, and also columns maintained by

2010.6.9 Deputy Minister Jou Jing-Yang of the National Science Council CTSP employees. The magazine serves as the best periodical Visits the Floor of the 2010 Taipei International Opto-Electronics Exposition for outsiders to understand recent development conditions in CTSP. In order to account for energy conservation and reduction Marketing and Promotion & Focus on Image of carbon footprints, the CTSP Informer is simultaneously and Media published electronically on CTSP Administration's website. In To enhance awareness of CTSP's development results, so the future, CTSP will provide its publications in Chinese, English, that the public and local communities have favorable opinions and Japanese editions and actively strive towards presenting an of CTSP, the CTSP Administration comprehensively presented international professionalism. CTSP's long term development results in 2010, through multiple promotion channels for CTSP, including televised media reports of CTSP developments and contracting information, as well as our high environmental standards and other environmental information. In terms of broadcasting, we held many televised interviews and produced relevant broadcasting programs in central Taiwan as well as addressing contracting work. In terms of print media, press conferences were held periodically while 55 press releases

CTSP Videos 15 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Gathering Elites & Fostering Talents Talents Fostering & Personnel Training Personnel Training & Enhancing Professional Capabilities

In order to account for technological development trends and fill the personnel demand gap, the CTSP Administration empowered a company to assist in implementing "Specialized Technical and Professional Training Program", which covers 31 training courses in semiconductor, precision machinery, optoelectronics, solar power, and operation and management of high-tech industries. 982 persons have participated in the training, and the programs have attracted enthusiastic participation from Park enterprise employees and prospective jobseekers in central Taiwan. The program not only improves the professional technical knowledge levels of Park enterprise employees, but also increases compatibility rate for Park enterprises when hiring employees.

Also, in order to resolve CTSP's personnel shortage, as well as diversify sources from which Park enterprises hire capable employees and reduce the discrepancies between academic learning and applied knowledge, the CTSP Administration and other science parks continue to support the "Science and Industrial Park Professionals Training Subsidy Program", carried out in a downward foundation-building format. In 2010, 16 curriculums for 13 schools were approved for assistance, and they continue to hold classes to train foundational and technical personnel. The assistance budget for 2010 totaled at NT$ 9.55 million (US$ 304,140), and 1,789 persons participated in the program.

Research & Development Environment

Central Taiwan currently contains a total of 27 universities & colleges, providing an abundant source of research personnel and resources for research units. After the Industrial Technology Research Institute, Institute for Information Industry, and National Center for High-Performance Computing entered CTSP, they not only provide CTSP with competent manpower and venues of personnel training, but also provide professional advice and contracted research services for Park enterprises, successfully playing the role of key promoters of industry developments.

With the addition of the nearby Metal Industries Research and Development Center, incubation centers created by regional schools in central Taiwan, and the powerful biomedical research community, they can all provide CTSP with training for R&D professionals and technical support. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 16 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Park Education & Future Elites In order to resolve the need of enrolling the children of CTSP employees and local residents, provide incentive for high-tech industries to invest in CTSP and for high-tech professionals to invest their careers in CTSP, the CTSP Administration has acquired support from the Ministry of Education on August 6, 2009, to establish schools in CTSP, as the Article 9 of the Science Park Management Regulations, which stipulates that "the National Science Council of the Executive Yuan may establish the National Experimental Elementary and High schools in the Park after negotiating with the primary 2010.12.24 Christmas Celebration in CTSP National administrative agency of educational affairs." On August 10, 2009, the Experimental High School development office was approved for establishment, and the office joined the 2010 high school recruitment drive in 2010. 121 students were recruited in 2010 (including 13 students from the Park). Currently, we have borrowed the Chung Hsing University campus as operational space for teachers and students. Actual school facilities also began construction on January 14, 2011, and are expected to be completed by 2012, to provide students with a better educational environment for teachers and students of the National Experimental High School. We believe that, by establishing the National Experimental High School, it will increase willingness of technical professionals to stay in CTSP, foster CTSP's growth, and also improve the educational quality of central Taiwan. 2011.1.14 Ground Breaking Ceremony for CTSP National Experimental High School

2010.8.2 CTSP National Experimental High School Grand Opening 17 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Industrial and Academic Cooperation & High-Tech Equipment Prospected Technology Substantial Improvement Plans Development Plan The Academia-Industry Consortium for Science Parks in To encourage domestic equipment Central Taiwan manufacturers to invest in R&D of future equipment technologies, CTSP commenced In order to effectively promote industrial and academic training and cooperation, work on the "High-Tech Equipment Prospected the CTSP Administration and Chung Hsing University established the "Academia- Technology Development Plan" in 2008, Industry Consortium for Science Parks in Central Taiwan", which will integrate Park which encourages Park enterprises to invest enterprises, school personnel, and education resources as 3 platforms, and strategically in developing core industry technologies. educate professional and technical manpower, and thus achieve the vision and objective Applicants are not limited to Park enterprises. of accelerating industrial expansion and developing into a specialized science park. The program is grounded on 5 major priorities: In 2010, industrial, governmental, and academic cooperation led to the creation material equipment technology, processing of promotional committees for optoelectronics, nanotechnology, biotechnology, digital equipment technology, packaging equipment communications, semiconductors, precision machinery, technological management, and energy, technology, precision machinery and testing all of which are dedicated to promoting industrial and academic cooperation in central Taiwan. technology, and training of technical research professionals. Sustainable Growth Program Implemented at Science In 2010, a total of 15 projects were Parks of the National Science Council approved for grants, with the government To account for the impacts of the financial crisis, and encourage Park enterprises providing approximately 35.3% of grants, to incorporate the R&D capacities of academic research communities and engage in joint totaling at NT$ 198.97 million (US$ 6.337 research for continuous devotion in R&D work, the CTSP Administration is working with million), of which NT$ 42.92 million (US$ the National Science Council to promote the program, "Sustainable Growth Program 1.367 million) were academic grants. Park Implemented at Science Parks of the National Science Council", which will encourage enterprises provided NT$ 384.85 million (US$ schools and participating Park enterprises to engage in cooperative research of key 12.256 million). 556 researchers benefitted industrial technologies through academic-industrial R&D models, and also ensure that from the grants, while 155 master & doctorate Park enterprises have the ability to upgrade their R&D capabilities. The program remained professionals and 3,004 professionals in operational in 2010, and is gradually moving towards completion. related fields were trained under these grants. CTSP approved 3 projects during 1st stage of the plans and 6 projects during 2nd All in all, these grants yielded considerable stage of the plans, approving research grants totaled at NT$ 40.114 million (US$ 1.278 results. million), including NT$ 12.646 million (US$ 402,739) in academic support and NT$ 27.468 million (US$ 874,777) in Park enterprise support. A total of 215 researchers have benefitted from the corporate cooperative grants, while 52 people also completed master & doctorate degrees in high-tech fields .

The Innovative R&D Subsidy Program

"The Innovative R&D Subsidy Program" is an industrial-academic cooperative platform with considerable history, operated by the 3 science parks in Taiwan. This year, the National Science Council requested each park's Administration to merge the innovative R&D plans 2010.10.22 3rd Member Meeting of the 1st Academia-Industry Consortium Training Session and the aforementioned sustainable growth program into the Academia-Industry Cooperative Research, Development, and Upgrade Program. In 2010, a total of 18 projects were approved. 32% of funding was provided by the government, totaling at NT$ 56.8 million (US$ 1.809 million), NT$ 21.12 million (US$ 672,611) of which was provided to academic researchers. Park enterprises who were encouraged to invest in R&D funding provided approximately NT$ 170 million (US$ 5.414 million).

The CTSP Administration founded the "Innovative Product Award" competition in 2008. Award criteria include innovation, technical performance, market competitiveness, R&D investments, secondary benefits, other international honors acquired, number of patents, and 2010.7.20 2009 Award Ceremony for the number of dissertations on the product. In 2010, awards were presented to 6 Park enterprises: Accomplishments of the "Science and Industrial AU Optronics, Forworld Electronics, NexPower Technology, Supertec Machinery, Gallant Park Professionals Training Subsidy Program" Precision Machinery, and Goodway Machinery. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 18 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

CTSP Employment Statistics Employment Growth & for December 2010

Economic Progress Number of Park Enterprise Employees Continued Employment Growth

After the global financial crisis, CTSP's employment Total 23,329 persons numbers continued to grow for 12 consecutive months after Taichung Science Park 18,720 persons January 2010. CTSP continued to set new records for 7 Houli Science Park 3,835 persons consecutive months after June 2010. By December 2010, Huwei Science Park 774 persons employment at CTSP totaled at 23,329 persons (75% of which have professional diplomas or higher education), an increase of 3,484 from December 2009 (17.6%). Most Industry jobs were generated by the optoelectronics industry, representing 59.7% of all jobs, followed by semiconductors, Optoelectronics 59.74% 13,935 persons at 25.1%. In terms of educational background, employees Precision machinery 12.57% 2,932 persons Computer & peripherals with college degree or higher represent 75.1% of companies 0.62% 144 persons all employment. Demographically, more men were Bio-tech 0.58% 136 persons employed than women, where men represent 63.6% of all Semiconductor 25.11% 5,858 persons employment, and 36.4% for women. Incubation 0.24% 55 persons Other park 0.20% 46 persons To help jobseekers find compatible careers, and businesses help Park enterprises secure competent workforces, the Other 0.95% 223 persons

CTSP Administration held a CTSP Job Fair on March 20 0 10 20 30 40 50 60 70 80 90 100 % and August 15 of 2010. 41 Park enterprises provided a total of 2,682 job openings in the first expo while 25 Park Employee Educational Background enterprises provided 7,857 job openings in the second, PhD 0.46% 107 persons all attracting tens of thousands of jobseekers to the MA 15.86% 3,700 persons expositions. Also, in 2010, 20 recruitment sessions were University 36.85% 8,597 persons held for individual Park enterprises, while 2 sessions of College 21.9% 5,109 persons CTSP Employment Counseling Class were held, which Vocational 23.31% 5,438 persons provided free counseling on English and math examination and interview techniques, to improve the employment Other 1.62% 378 persons prospects of local residents who intend to work in CTSP. 0 10 20 30 40 50 60 70 80 90 100 %

2010.3.20 Premier Wu Den-Yih of the Executive Yuan visits the CTSP 2010.4.19 Participants of the CTSP Employment Counseling Class Job Fair and provides words of encouragement to jobseekers personally experience laboratory clothing 19 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Consolidation & Environment Invigoration

Lifestyle Functions & Employee Recreation Utmost Care for Employee Living

Today's job markets are becoming increasingly competitive, and workers face unprecedented pressure at work. To improve the mental well-being and harmony between society, family, and marriage for CTSP employees, and prevent low production, overwork, depression, and job-related accidents, the CTSP Administration initiated projects related to the Employee Assistance Programs (EAP) and other related projects to help understand problems faced by CTSP employees as well as spread awareness for the EAP itself. Plans to establish joint service centers are also under consideration. The CTSP Employee Assistance Programs Center was officially founded in 2010 to provide CTSP employees with free legal advice and psychological counseling, and hold lectures related to employee assistance. We hope to resolve various labor-related issues in the most economical, professional, and efficient methods, and ultimately improve the workforce's well-being and forge a healthy CTSP. Also, the CTSP Administration held worker recreation and cultural events such as the Labor Day celebrations, a CTSP Sport Meet, CTSP Fun Movies, and "Celebration of Culture" to relieve work and life pressure employees may face, and promote a healthy lifestyle.

2010.4.28 Director-General Yang Wenke of the CTSP Administration photographed with the winners of CTSP Employee of the Year CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 20 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Free Moive Night at CTSP

2010.5.14 Commencement Ceremony at CTSP 2010.6.25 Winners of the basketball category happily photographed together Employee Assistance Programs Center during CTSP's sports competitions

On April 26 and 28, CTSP held "CTSP's Starlight Dreams – Model Worker Commendation Ceremony and Singing Competition," where 16 model employees had their distinguished records recognized. Winbond's Mr. Chang Shengyueh went on to become the national model employee.

CTSP Fun Movies had been held for 3 years. 26 popular films were played in 2010, including No Puedo Vivir Sin Ti. The huge 350-inch screen attracted 5,030 CTSP employees and local residents to the free movie nights. The CTSP Theater also ventured out of Taichung Park on August 5 and 16 and invited cultural aficionados in music, dance, stage plays, and singing to hold a unique cultural party in Houli Park and Huwei Park. CTSP employees and local residents were earnestly invited to partake in the celebration, which was a truly heartwarming occasion. 21 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Proactive Promotion of Friendly Workplace

To encourage companies to create a friendly workplace to achieve work- family balance, and realize the principles of the Gender Equality in Employment Act, the CTSP Administration not only regularly holds lectures to improve awareness of relevant legislations and allocate funding assistance, but also held corporate childcare observation events with the Executive Yuan's Council of Labor Affairs. On April 22, we visited the employer-financed childcare centers of TSMC and Accton Technology in Hsinchu Science Park to encourage employers to finance childcare facilities. At the same time, we also recommended outstanding 2010.4.22 Park enterprises visit TSMC's childcare and Park enterprises to participate in the "Outstanding Employers with Friendly after-school developmental center Workplaces" nomination event for the Executive Yuan's Council of Labor Affairs, where Taiwan Corning and Rexchip participated in the event. Among the 142 enterprises who participated in the nomination, both of them won outstanding distinctions, clearly evidencing CTSP's commitment for promoting friendly workplaces and creating a friendly science park.

Topical Seminars & Lifestyle Enrichment

The CTSP Administration held 6 topical seminars in 2010 on the issues of all-out defense, English learning, policy communication training for public servants, current national policies, mainstream gender issues, and the Gender 2010.12.10 Park enterprises recognized for their achievements in friendly workplaces Equality in Employment Act, so that CTSP employees can enjoy the intelligent and inspiring lectures of experts on a variety of issues, which can also increase interaction between colleagues and strengthen workplace friendship.

2010.6.11 Seminar on all-out defense and territorial CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 22 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Post Office First Bank Land Bank and Bank of Taiwan

Comprehensive & Convenient Services Consolidation of Functionalities through Entry of Multifaceted Services

To provide Park enterprises and employees with relevant financial, commercial, conferencing, dining, and shopping amenities, the CTSP Administration built the Industrial and Commercial Service Building, which officially became operational on March 13, 2008. Currently, we have introduced First Bank, CTSP Clinic, Employment Service Center, Post Office, CTSP Transportation Center, and 0.02 Convenience Store to Floor 1 of the building to provide services.

In terms of financial services, First Bank had been introduced to Floor 1 of the Industrial and Commercial Service Building, while Bank of Taiwan and Land Bank are now in Floor 2. Also, Floor 2 contains Info-Link Services Company to provide advanced software design and development services. Floor 3 contains Ginko International, which is the headquarters of the well-known Taiwanese brand, Formosa Optical. Floor 4 contains the Central Taiwan Industrial Technology Service Center of the Industrial Technology Research Institute to provide corporate consultants, address demands for business creation and professional personnel, and assist Taiwanese firms in central Taiwan and overseas with technical upgrades, industrial transformations, and business creation. Floor 5 contains Weturn Telecommunications, which provides planning, design, and development services for green energy and energy conservation projects. Floor 6 contains YTSY Car Rental, Tectonic Engineering Consultant, and Chuanan Safety Engineering, who can provide car rental services, engineering technology consultants, industrial safety and sanitation, fire prevention, and environmental consultation. Floor 7 contains the Association of Industries in Science Parks to provide services to Park enterprises. Floor 8 contains Road Ahead Technologies Consultant to provide technologies to assist clients to introduce and apply needed equipments, and also the Taiwan Laser Application Development Association, who works with the government to promote industrial upgrades and encourage improvements of professional technologies related to industrial laser applications. Floor 9 contains a temporary office of TSMC.

Currently, nearly 90% of the Industrial and Commercial Service Building had been rented out, providing a comprehensive array of the best commercial and personal services, and also improving the investment environment for central Taiwan's industries, balancing out regional industrial developments, driving forth industrial upgrades, and invigorating the local economy.

CTSP Clinic Employment Service Center 0.02 Convenience Store CTSP Transportation Station 23 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Enhance Online Park Information Services & Science Council's integrated documentation management system Improve Efficiency for 3 science parks is gradually brought online, followed by the establishment of paperless approval and signing procedures as To address Park enterprise needs, the CTSP Administration well as remote information sharing systems for Park enterprises, has been expanding its array of electronic services and expanding information sharing and improve service quality. accelerating administrative information processing to support Furthermore, to enhance the functionality of CTSP operations and developments of Park enterprises and improve Administration's information systems, we have adopted High CTSP's competitiveness. We have established electronic service Availability (HA) main station support. Moreover, to reduce system for not only compiling the establishment and registered changes damage to critical system infrastructure during unpreventable of companies and plants, but also issuing investment deduction disasters, we have established remote disaster backup and support certificates, tax free certificates, liquidation certificates, and foreign services, minimizing system recovery time and providing Park employment work permits. At the same time, we are intensifying enterprises with continuous service. outside advertisements for CTSP and promotions of convenient services. We have specially expanded CTSP Administration's contents to include VR environmental tours, traffic maps of the Telecommunications Infrastructure as a Top Priority Parks, 3D interactive tours of the office towers, bicycle routes, free shuttle bus tours in the Park, and other public utilities. We have To enhance governmental administrative efficiency and also provided information on nearby amenities and services on the public service, and thus address public and corporate needs, the general GIS system to provide for the living needs of employees CTSP Administration is not only expanding relevant computer and visitors of CTSP. hardware and enhancing system backup and support functions

To aid Park enterprises in business procedures and increase to maintain normal information service operations and create administrative efficiency, the CTSP Administration has introduced reputable information service environments, but also utilizing the use of individual identification in environmental safety modern information technology to promote electronic administrative information systems, so that online reporting procedures pertaining procedures through instantaneous and interactive online operations, for professional safety and sanitation are more comprehensive and thus shaping CTSP into a desirable science park of sustainable safer. We have also created a court rental management system to development with a focus on free flow of abundant information and provide a venue of sport recreation for Park enterprises' employees. high-tech industries.

In terms of enhancing information functionalities in Major policy implementation results in recent years included construction services, the public network maps of Houli Park will installing ADSL broadband networks in Taichung, Huwei, and Houli be converted into digital files and incorporated into the application Park with electrical contractors, public wireless networks for public of existing geographical information databases as various public zones, and incorporating Taichung Park into the 3.5G broadband construction projects are approaching completion. At the same system in central Taiwan, as well as implementing telephone and time, completion pictorials of several construction projects have also cell phone conservation mechanisms to reduce communication been scanned into files for online referance. In terms of information costs. Also, another national high speed online hotline is services for construction management, we are adding construction established on top of the CTSP Administration's existing FTTB and blueprint scans for several construction projects, and compiling high speed external hotline to enhance the CTSP Administration's image data into construction image database management systems external broadband and safety backup functions. for direct professional perusal. In 2010, we have installed public network databases for

In order to accelerate transformation of information services Taichung, Huwei, and Houli Park to improve CTSP's management for agencies under science parks abiding the policy of National efficiency for its information infrastructures through planning of Science Council, CTSP is planning to integrate information services shared underground networks and combining public and private across every Park under its jurisdiction. First of all, the National optical fiber networks.

Security Operation Center Website Tour of CTSP Administrative Building Website Tour Tour CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 24 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Community Outreach & Local Services Meetings for Park Neighbores - Establishment of Local Communication

To create a friendly neighborhood, the CTSP Administration periodically invites magistrates and representatives from local areas for conference meetings to establish positive communication channels with local residents. In 2010, 5 meetings were held for Houli, Huwei, and 2010.8.30 CTSP Administration holding a meeting of developmnet Taichung Park, the Advanced Research Park, and Erlin Park. in Advanced Research Park

The Sidadun Kiln: Major Cultural Heritage Site

The cultural site of Sidadun Kilm is located near the intersection of Jhongke Road and Keya Road in Taichung Park, discovered in late 2003, when the construction of Taichung Park had just started. Experts have confirmed that the structure existed for 150 to 200 years, and was a clay-manufacturing furnace used by Han people in the late Qing Dynasty to make daily necessities. This type of furnace is rare and valuable in Taiwan, and it also indicates that as far back as 200 years ago, Taiwan's pioneers no longer relied on imported goods from Fujian, and were able to sustain themselves in Taiwan. Therefore, Sidadun Kiln has its significance in Taiwan's cultural history.

To protect and preserve this major cultural property, the CTSP Administration invited Professor Liu Yi-Chang of Academia Sinica to excavate the site, as well as archive and investigate artifacts recovered during the excavation. In 2007, the furnace was solidified, and in September the BenQ Foundation added additional protective measures to the furnace, and then donated it to CTSP custody, clearly demonstrating CTSP's commitment to its responsibilities in the high-tech industries and cultural preservation. Thus, technology development can coexist with cultural heritage, so that people not only see CTSP's high-tech industries, but cherish the valuable legacies of the Sidadun Kiln.

99.8.30 The 200-year old Sidadun Kiln shines together with CTSP 25 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Safety Enhancements & in multiple ways to effectively increase the overall safety and Environmental Protection sanitation levels of CTSP, encourage worker health and labor inspection efficiency, and ultimately create a safe, healthy, and Enhance Safety and Security & Improve humane work environment. Disaster Response Capabilities Under CTSP's safety and sanitation enhancements, we

To protect CTSP from every angle possible, we have were able to achieve noteworthy results. Mr. Chen Hsiaolong, an currently completed surveillance camera installation for employee of Rexchip, won the award of distinguished safety and Huwei and Houli Park, and speed-testing camera installation sanitation agency and personnel from the Council of Labor Affairs of for Huwei Park. We are also continuing operations of the Executive Yuan in 2009. Also, Taiwan Nitto Optical and Rexchip the Park's joint safety network to integrate the security both won the employee safety and sanitation achievement award capabilities of Park enterprises and assist CTSP's security for CTSP in 2009. force with maintaining safety and traffic enforcement in CTSP. We have integrated resources from the training Create Comfortable Workplaces & Promote center of the National Fire Agency of the Ministry of the Employee Health Interior to provide disaster prevention and rescue training As manufacturing technologies change and corporations for CTSP. We are also in the process of creating prevention are transformed, Taiwanese workers face widespread workplace and rescue teams, as financed by Park enterprises, and pressure, overtime work (overworking), heavy shifts, physical providing education and training, to establish an autonomous fatigue, heart and pulmonary diseases, and bone and muscle security team for CTSP and refine our security functions. injuries (ergonomic). To promote workplace health and reduce Emergency response teams will be established in a timely incidence of work-related illnesses, the CTSP Administration and manner during times of crisis. We are promoting the CTSP the CTSP Clinic held joint health promotion events in Taichung, Disaster Prevention and Rescue Training, Assistance, and Houli, and Huwei Park. Topics addressed by the events include Exercise Plan to assist Park enterprises with post-disaster workplace health-management of bodily functions, work-life analysis, and improving emergency response techniques balance-pressure management, and ergonomic management. to consolidate CTSP's emergency response and joint Lecturers provided questionnaires to participants to understand prevention functions. Furthermore, we are working with the the physical conditions of individual participants, and led classes in Taichung county government to hold large scale disaster simple pressure relief activities. Aside from holding health promotion prevention and rescue exercises for Houli Park, so that all activities, we also provide lectures and emergency rescue training relevant units are familiar with disaster rescue, response, on metabolism syndromes, noise prevention, pressure relief, weight and joint prevention procedures (as related to hazards from loss, and work-life balance to assist employees with improving poisonous chemicals, fire, and falling buildings resulted their own bodily functions, creating comfortable workplaces, and from earthquakes). We have seismographs and automatic promoting physical and mental well-being and work-life balance. earthquake magnitude reports for Taichung Park to enhance CTSP's communication functions during disaster prevention and rescue.

Promote Safety and Sanitation Awareness & Protect CTSP's Environment

In terms of promoting worker safety and sanitation awareness and assisting and executing mobile inspection work, CTSP adopts a single-window preventative safety evaluation assistance mechanism, and uses information technology to enhance autonomous management of Opening ceremony of large-scale disaster 2010 disaster corporate agencies and expand universal participation prevention rescue exercise in Taichung County, prevention and rescue hosted by Director General Yeh Jitang of the field training mechanisms. We also apply disaster prevention resources National Fire Agency (left 2), Director-General Yang Wenke of the CTSP Administration (right 1), Lieutenant Commander Jhong Banghsin of the 10th Army (right 2), and Director Dzeng Jintsai of the Taichung County Fire Department (left 1). CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 26 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Environmental Protection at Every Level

In terms of environmental work, CTSP is committed to its industrial wastewater disposal, industrial waste management (and recycling), air pollution emission management, environmental quality monitoring and assessment, and promotion of environmental legislation. Also, in terms of environmental monitoring mechanisms, there are the Houli Park Development Plan Environmental Impact Assessment Conclusion Implementation Oversight Team under the jurisdiction of the Excutive Yuan's Environmental Protection Agency , the Science Park Development Environmental Impact Assessment Tracking Team under the jurisdiction of the Executive Yuan's National Science Council, the CTSP Environmental Protection Monitoring Commission under the jurisdiction of the Taichung City government, and the Houli Park Environmental Protection Monitoring Team established by the CTSP Administration. Through these mechanisms, we can increase civilian participation and address demands from the public and environmental groups for environmental monitoring, and thus fulfill our promises of environmental protection. Besides, by releasing monitoring results and relevant environmental research plan results through the CTSP Environmental Monitoring website for public online monitoring, we can achieve free flow of information. As well, CTSP devised several leading and innovative measures for promoting environmental work, such as in the 3rd stage Chising Park, where there are not only high standards for water outflow, management, and use of chemicals but also the need to conform to the REACH standards of the European Union, and Park enterprises need to acquire approval registration codes from the CTSP Administration before they can use a certain chemical. CTSP also provides epidemic research and subsidies for local residents undergoing health tests as part of its friendly neighborhood policy. There is also CTSP's 4th stage maritime outflow policy to release CTSP's wastewater, and requests to Park enterprises to adopt BAT, establish greenhouse gas indicators, and build artificial wetlands, all of which demonstrates that CTSP is not only a high-tech development park, but also a leader in domestic environmental standards.

In 2010, Park enterprises who won the 19th Annual Enterprises Environmental Protection Awards from the Environmental Protection Agency under the Executive Yuan include AU Optronics, Taiwan Corning, and Rexchip. This award is the highest distinction available from the Environmental Protection Agency, and Taiwan Corning and Rexchip had won the award for two consecutive years, while AU Optronics has won its third consecutive award. For such distinctions, AU Optronics further won the Outstanding Achievement in Industrial Waste and Reusable Resources Cleanup and Resource Reduction and Recycling Award for its remarkable performance, fully demonstrating that CTSP's environmental work and results have gradually won recognition after diligent promotion from the CTSP Administration and commitment from CTSP's enterprises.

In 2010, wastewater volumes processed by the wastewater treatment plant in Taichung Park totaled at 13,371,917 cubic meters. Wastewater processed in Huwei Park totaled at 211,505 cubic meters, and wastewater processed at Houli Park totaled at 2,584,180 cubic meters. To ensure that wastewater released by Park enterprises conforms to water quality requirements for inflow pipes, the CTSP Administration randomly inspects samples of Park enterprises' wastewater releases for a total of 6,500 times. Under these strict management and supervision, CTSP had never suffered any penalty from environmental violation during numerous samplings and tests of CTSP's wastewater by the Environmental Protection Agency and Taichung Environmental Protection Department.

Taichung Science Park-Wastewater Houli Science Park-Wastewater Huwei Science Park-Wastewater Treatment Plant Treatment Plant Treatment Plant 27 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Coexistence of the Four Aspects & Sustainable Development

Simultaneous Consideration for both Environment and Economy

All five parks of CTSP adopted environmental engineering to allocate public green spaces to provide desirable space for production, R&D, environmental ecology, recreation, and lifestyle. The green spaces of Taichung Science Park incorporate high- standard flood resistance features from soil preservation design plans, which enable the fulfillment of recreational needs for CTSP employees and local residents under the consideration of anti- flood requirements.

Taichung Park's landscape is based on the peripheral green belt with footpaths and bicycle paths connecting the Park's 8 major flood detention ponds, which form an ecological scenery park. The peripheral green belts occupy 47 hectares, while the footpaths total at 11km in length. The flood detention ecological park formed by the 8 major flood detention ponds consists of 51.3 hectares of land, successfully creating a green landscape for the Park. The flood detention ecological park not only acts in its primary flood detention role, but also contains many recreational and scenic facilities, such as water recreation areas, concert halls, sport courts, scenic footpaths, jogging paths, and bicycle paths. Through the Park's peripheral green spaces, we have successfully forged a green landscape for the Park that harmonizes the mountainous elements of local geography, thus further shaping a scenic environmental characteristic of the Park that simultaneously addresses technological production and environmental ecology, and increasing interaction and connection between the Park and local communities. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 28 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Based on the construction experience in Taichung Park, Huwei Park is also displaying the rural characteristics of the Chiayi-Yunnan plains by arranging multifunctional flood detention ponds and peripheral green park spaces surrounding production plants and connecting local existing plains and ponds, thus create a harmonized landscape between the Science Park and local communities. Meanwhile, Erlin Park has adopted the "rural oasis" concept and incorporated optical electronic renewable resources, open spaces for flood detention ponds, friendly biological-ecological foundation environment designs to formulate its overall landscape, providing local residents and park employees with environmental-ecological parks for leisure and recreation, and creating a "Eco-Tech City" for the industry that fits today's culture.

Emphasis on Park Enterprise Satisfaction

To devise comparison indicators of fairness, objectivity, and consistency for each science park's administration (Hsinchu Science Park, CTSP, and Southern Taiwan Science Park), and encourage each park's administration to focus on client satisfaction, achieving the objective of improving service quality, the Science Park Enterprise Satisfaction Survey was promulgated in 2004, which is enforced by hiring professional researchers annually.

In 2010, research firms performed questionnaire and field investigations of 56 Park enterprises, and among the 3 science parks, the CTSP Administration ranks the highest in park image, park service quality, overall satisfaction, complaint processing, and loyalty scores. 29 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

Continuous Progress in Construction

The series of construction projects for CTSP itself began in July 2003. To accelerate enterprise entry to CTSP, public construction and plant construction were carried out simultaneously, which was unprecedented in Taiwan. Because of large numbers of enterprises who applied to enter Taichung Park, there was a shortage of land. Subsequently, Taichung Park underwent its 2nd stage expansion, and Huwei Park (grounbreaking in July 2004), Houli Park (groundbreaking in March 2006), and Erlin Park (groundbreaking in December 2009) were built. There were a total of 112 construction projects between Taichung, Huwei, Houli, and Erlin Park, 19 of which were in 2010. There were 11 completed construction projects in 2010, including Taichung Park's 2nd stage outflow pipe project, the overall public construction in Houli Park (Chising Park), and preliminary construction in Erlin Park. Currently, construction projects currently in progress include: central reservoir, police personnel quarters, and 3rd stage wastewater treatment plant construction in Taichung Park, the outflow pipe, 1st and 2nd step of 1st stage wastewater treatment plant construction, site connecting routes, reservoirs, and 2nd stage overall landscape construction for Houli Park, and the 60-meter and 24-meter wide road, Wanhsing sewer network (1st stage) and flood detention pond for Erlin Park.

Under the collective diligence of the CTSP staff, overall development of CTSP has progressed to 58.60% before December 2010. Taichung, Huwei, and Houli Park are approaching 100% development. Executed development in 2010 stood at 94.01%. Such rapid construction execution rate is also a major incentive towards attracting enterprises to CTSP. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 30 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Night View of the CTSP Administration 31 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

CTSP Reputation & Prosperity

After the establishment of CTSP, several complete high- tech industry supply chains were rapidly formed in central Taiwan, resulting in industrial clusters for the optoelectronics, integrated circuits, precision machinery, and biotechnology industries, especially for the optoelectronics industry. Major enterprises such as AU Optronics and the internationally renowned Corning Display Technologies Taiwan, Japan's Taiwan Nitto Optical, JSR Micro, and the South Korean PKLT have all chosen to establish plants in CTSP. Also, a total of 12 12-inch wafer plants operated by Winbond, ProMos Technologies, Rexchip, and TSMC (the newest plant from TSMC will become operational in 2011) also catalyze CTSP into the flagship science park across Taiwan in terms of 12-inch wafer manufacturing.

In terms of industrial integration, the economic communities formed by CTSP yielded rapid results, creating high demand for midstream and downstream satellite plants and accelerating the pace of transformation of central Taiwan's traditional machinery industries. Under Taichung City government's guidance, plans and developments are now under way for the Ta-Li Industrial Park, Ren- Hua Industrial Park, Taichung Precision Machinery Technology Park, and the Shengang Fengchou Industry Technology Park, catalyzing vertical integration and industrial upgrades of the midstream and downstream satellite industries in central Taiwan.

Due to CTSP's unique geographical location that is equidistant to northern and southern Taiwan, CTSP became a lifestyle center in Taiwan after the High Speed Rail was in operation, not only steadily gaining reputation as a first choice amongst reputable domestic and international corporations who wish to establish production facilities and headquarters, but also accelerating central and local efforts to forge the foundational infrastructures for Taichung City and turning the Taichung area rapidly into an international metropolis.

CTSP's industrial halo enabled prosperous developments of the commercial area between CTSP and the west of the highway interchanges. CTSP's radiant charisma continues to attract more and more jobseekers and residents. Construction and investment in the commercial zones and the prosperous landscape expanding from the Situn District, further incorporating the Tunghai Commercial District, BTech Mall commercial District, Urban Retail District, and Taiwan Sugar Commercial District, form a concentrated livelihood district, greatly expanding consumer activities and purchasing capabilities. Such unique characteristics in central Taiwan are, in several ways, thanks to CTSP's developments. CTSP Leadership & Technological Foresight│CTSP Foundation & International Reputation│Gathering Elites & Fostering Talents 32 Consolidation & Environment Invigoration│Coexistence of the Four Aspects & Sustainable Development│Entering 2011 & Retrospect of 2010

Entering 2011 & Retrospect of 2010

Diligence of 2010 & Prospects for the Centenary Over the past 7 years, CTSP has successfully played key leadership in central Taiwan's high-tech developments, leading industrial transformation and upgrades in central Taiwan, and the redevelopment of traditional and high-tech industries in urban Taichung. In the next 10 golden years, Taiwan faces a critical transformative stage, of which the implications of CTSP not only cover the semiconductor, optoelectronics, and biotechnology industries, but also allow local precision machinery and upstream and downstream industries to coalesce to effect prosperous growth, which will allow central Taiwan's existing industries of advantage to rapidly expand, and also give birth to emerging industries. In the future, we hope to achieve the following objectives and turn CTSP into the most competitive science park in the world:

1. Pursue new peaks in high-tech industries: enhance CTSP's overall industrial depth through developments in relevant raw material industries from existing parts manufacturers; assist with the integration of industry, academia, research, and production resources to enhance R&D capabilities; introduce high value-added industries and encourage research and innovation; reinforce cooperation between international science parks to forge global connections; and actively recruit overseas professionals to cultivate competent workforces.

2. Establish sustainable development and desirable investment environments: create an ecological park and humanistic spaces; provide desirable living environment and convenient lifestyle amenities; create high-efficiency and humanized operational mechanisms; improve environmental and administrative assessment efficiency; and provide stable provision of water, electricity, and foundational resources.

3. Harness industrial group effects: incorporate regional resources and peripheral industries, arrange industry clusters with unique CTSP characteristics, so as to sustain and enhance CTSP's competitiveness. 33 CENTRAL TAIWAN SCIENCE PARK 2010 ANNUAL REPORT

CENTRAL TAIWAN SCIENCE PARK Major Developments of 2010

99/01/14 Minister Lee Luo-Chuang of the National Science Council and Vice President Tseng Yung-Chuan of the Legislative Yuan inspect CTSP developments and visit Forworld Electronics in Blue-Ray Industry.

99/01/21 The Supreme Administrative Court ruled against the Environmental Protection Agency in the litigation suit against CTSP's environmental assessment of the Chising site.

99/03/15 Director-General Yang Wenke of the CTSP Administration leads Taiwan's delegation to Jordan for the 5th ASPA LEADERS Meeting, and successfully acquired the authority to host the 6th LEADERS Meeting in 2011.

99/03/17 The Seminar between Premier Wu of the Executive Yuan and Park enterprises is held, with 37 enterprises and 80 representatives participating.

99/03/20 2010 CTSP Job Fair and Joint Recruitment Event is held. 41 Park enterprises provided 2,682 job openings. Over 10,000 people participated in the event.

99/05/06 The National Science Council of the Executive Yuan conducts annual performance assessments of the labor safety and sanitation inspection for Hsinchu Science Park, CTSP, and Southern Taiwan Science Park. CTSP won the "B Group Achievement Award" after thorough assessments.

99/05/23 Director-General Yang Wenke leads a delegation to South Korea for the 2010 annual conference of the International Association of Science Parks.

99/05/25 The CTSP Administration signs a memorandum of understanding with Manchester Science Park from England. 99/07/13 The Executive Yuan approves CTSP's plans to allocate Publisher : Wen-Ke Yang land to build the National Experimental High School in Advisory Board : CTSP. Ming-Huang Chen, Kunming Kuo, Nancy Wang, 99/07/21 The "7 Years of Radiant CTSP Progress" event is held Hong-Yan Wang, Rong-Yi Li, Siou-Mei Jhang, to celebrate CTSP's 7th anniversary. Ji-Yuan Chen, Wen-Chuan Zhong, Jyun-Jie Wang, Yu-Hui Su, Shu-Yih Li, Hsi-Wen Jen 99/07/30 The Taipei High Administrative Court ruled to suspend Text Editors: execution of the National Science Council and Ministry of the Interior's development permits after reviewing I-Mei Huang, An-Yu Li, Huei-Fong Chen, Bo-Liang the Environmental Protection Agency's environmental Tsai, Wei-Zhen Hong, Yuan-Chi Liu, Ming-De Chen, assessment of Erlin Park. Su-Chuan Lin, Jun-An Chen Executive Editors: Su-Chin Yang, Dustin Wu 99/07/30 The Taipei High Administrative Court ruled that, "CTSP's 3rd stage development zone (Chising Site in Houli Science Press Correctors: Su-Chin Yang, Dustin Wu Park) shall suspend development operations." Editing and Artistic Design: Tang Cultural Creative Design Co.Ltd. 99/08/02 The CTSP National Experimental High School opening ceremony is completed. First Edition: March 2011 Published by Central Taiwan Science Park 99/08/15 The 2010 CTSP Job Fair is held, with 25 Park Administration, National Science Council, Executive Yuan enterprises offering 7.857 job openings. Address: No.2, Jhongke Rd., Situn District, 99/08/18 The CTSP Administration signs a memorandum of Taichung City 407, Taiwan (R.O.C.) understanding with Yokosuka Research Park from Tel: (04)2565-8588 Japan. Fax: (04)2565-8800 99/08/31 The Environmental Protection Agency approves CTSP's Website: http://www.ctsp.gov.tw environmental assessment project of Chising site of the Houli Science Park during the 197th environmental GPN: 2009402238 assessment conference. ISSN: 1998-2259

99/09/02 The Environmental Protection Agency promulgates the Price: NT200 results of the environmental assessment of CTSP's Chising site of the Houli Science Park.

99/09/18 Public construction in Chising site resumes completely.

99/09/29 Construction resumes in Erlin Park, and relevant construction supervision agencies are tasked with ensuring that public construction contractors resume construction work.

99/10/14 Urban planning changes to the Advanced Research Park announced, and promulgated on October 15, 2010.

99/10/15 The National Science Council assigns Director-General Yang Wenke as the Director of the Development Office for the Advanced Research Park.

99/12/14 Secretary-General Toyoki Kunitake of the Kitakyushu Foundation for the Advancement of Industry Science and Technology leads a delegation to CTSP and holds the Asia as a Low-Carbon Society lecture.