Taiwan has operated three major science parks across its northern, central, and southern regions for over 40 years to attract high-tech industries and achieve regional development balance. The parks, distributed along Taiwan's western coast, house semiconductor manufacturing facilities including TSMC's production bases and are referred to as Taiwan's 'silicon shield.' Korea's planned semiconductor belt spanning capital, Chungcheong, and Honam regions has drawn attention to Taiwan's model as a reference case.
Northern Science Park Serves as R&D and Design Hub
The northern Hsinchu Science Park is Taiwan's first science park and serves as the headquarters of TSMC, the world's largest semiconductor foundry. UMC and fabless company MediaTek also established operations in the northern science park.
The Industrial Technology Research Institute (ITRI), National Tsing Hua University, and National Yang Ming Chiao Tung University formed a world-class R&D triangle in the region. While the northern park's share of Taiwan's total semiconductor production has decreased due to central and southern park development, it maintains its symbolic position as the center of industry-academia-research R&D collaboration and semiconductor chip design.
TSMC began operating a new fab applying 2-nanometer process technology in Hsinchu from last year's fourth quarter. TSMC plans to expand production facilities further at this location.
Central Science Park Development Started in Early 2000s
The central science park began construction in the early 2000s, starting later than the northern and southern parks. The government established the central science park to address regional development balance after criticism of favoring the northern region and neglecting southern and central areas. Political parties presented pledges to revitalize the central economy from the 1990s.
The central region serves as a transportation hub connecting northern and southern areas. The region is known for high-level precision machinery industry, meaning the central park developed backward industries that can supply equipment to manufacturers. Among its sub-districts, Erlin Park shows notable growth with rapidly increasing revenue and employment. Erlin is evaluated as a candidate site where TSMC may build advanced packaging and testing facilities. Reports indicate TSMC is reviewing plans to build 2-nanometer fabs and more advanced process fabs in the central region.
Southern Science Park Overtakes Northern Region in Revenue
The southern science park started later than the northern park but has overtaken it by establishing itself as a center for advanced process mass production. According to Taiwan's National Science and Technology Council, the three major science parks generated approximately 5.8 trillion Taiwan dollars (approximately 277 trillion Korean won) in revenue last year, with the southern park accounting for over half of total revenue at nearly 3 trillion Taiwan dollars. TSMC accounts for most of this revenue, solidifying the southern region's position as TSMC's mass production base.
Policy Continuity Maintained Across 40 Years of Political Transitions
One factor behind Taiwan's successful semiconductor belt spanning northern, central, and southern regions was policy continuity maintained for over 40 years. Following the northern science park's groundbreaking, the roadmap for science park expansion and regional balanced development continued for over 40 years regardless of political party transitions. Each successive administration approved new sub-districts within science parks and prepared industrial infrastructure proactively regardless of global semiconductor cycles.
FAQ
What are Taiwan's three major science parks?
Taiwan operates three major science parks in its northern, central, and southern regions. The northern Hsinchu Science Park is the oldest and serves as TSMC's headquarters and R&D center. The central park started in the early 2000s focusing on regional balance and precision machinery. The southern park has become the largest by revenue, serving as TSMC's mass production base.
How long has Taiwan been developing its science park system?
Taiwan has been developing its science park system for over 40 years since the northern Hsinchu Science Park was first established. The policy has continued across multiple political transitions, with each administration approving new sub-districts and maintaining the regional development roadmap regardless of global semiconductor cycles.
