Annual Report 2008 HSINCHU SCIENCE PARK Preface Established in 1980, the Hsinchu Science Park (HSP) has gone through 28 years of development and created a specialized technology industry cluster with global reputation. In addition to elevating high-tech industries in Taiwan, the HSP has helped create numerous cutting edge technologies and products. As the powerhouse of global high-tech industries, the HSP has not only created a number of high-tech miracles but also cultivated diversified high-tech talent, integrated R&D resources, and solidified domestic high-tech industry competence. According to the latest "Global Competitiveness Report (GCR)" released by the World Economic Forum (WEF), Taiwan ranked the first place in the category "State of Cluster Development" for three consecutive years (2006-2008). The Hsinchu Science Park has become a remarkable model for many other nations, with its development process regarded as a success story for "Turning Silicon into Gold." The Hsinchu Science Park is renowned for its innovative hightech industry cluster, where semiconductor industry plays the key role. Revenue generated from semiconductor manufacturers at the HSP accounts for 70% of the Park's total revenues, approximately half are involved in semiconductor-related industries, e.g. wafer fabrication, IC design, packing and testing, materials, equipment manufacturing, etc. Owing to sound and mature semiconductor industry cluster, related products can be closely and effectively integrated from R&D to mass production. Additionally, the chain has also actively promoted establishment of 100~200 related manufacturers, demonstrating the linking effect yielded by science park innovation industry clusters to industry development as a whole. The semiconductor industry is expected to dominate the main stream of Taiwan's high-tech industries in coming decades. All sectors within the TFT-LCD industry exhibited a steady growth at HSP in 2008, e.g. mask, backlight module, and driving IC in the upper-stream and TFT-LCD, OLED, systematic TV, LCD projector, LCD monitor, and digital camera in the mid-stream, with AUO, InnoLux, TPO, and Wistron being positioned to help construct a comprehensive optoelectronics industry chain at the HSP. More solar energy manufacturers are rapidly relocating to the HSP due to active national and international development of solar energy industry. Solar energy manufacturers, such as DelSolar Co., Ltd., Neo Solar Power Corporation and Gintech Energy Corporation, and solar energy materials suppliers, such as SAS, Wafer Works Corp., CN-J Technology Co., Ltd., (the Japanese solar energy system) and Archers System, Inc. (solar energy equipment manufacturer), are also stationed in HSP to construct a comprehensive structure for the solar energy industry upstream and downstream supply chains. The solar energy industry cluster effect as a whole in Taiwan is expected to form in near future. To solidify domestic biomedical industry, the "Hsinchu Biomedical Science Park," is currently in business recruiting stage and focuses on development of new drugs and medical equipment. The Hsinchu Biomedical Science Park incorporates a wide variety of facilities, e.g. biomedical standard fabs, a incubation center, an quarantine center, and a medical center. Development of the Hsinchu Biomedical Science Park will certainly help domestic biomedical industry cluster formation. Success of the HSP industry cluster relies on an excellent investment environment, which includes infrastructure, one-stop services, excellent talent and culture, innovative R&D, and a mechanism for collaboration between industry and academia. This environment is generating a chain reaction to help HSP manufacturers in saving logistics cost, creating added value, and upgrading global competitiveness. I have witnessed the prosperous development of the HSP for fifteen years since I reported to duty in June 1993 as the Director, Deputy Director General, and then the Director General of the Science Park Administration. Hsinchu City has been developed from a historical city to a diversified city that combines high technology, culture, and tradition. Thanks to the contribution of the HSP for helping the residents of Hsinchu City enjoy a high disposable household income, second only to that of residents of Taipei City, and the highest consumption ability in Taiwan. For future prospect, I will try my best to provide the best services for Park tenants and I will ask my colleagues to keep the following four points in mind while carrying out businesses: (1) sustainable self-learning & growth, (2) simplification of administrative procedures, (3) enhancement of customer satisfaction, and (4) financial structure improvement, in an eye to substantiate industrial structure of science and technology, reinforce R&D energy, promote stable and integrated productivity, and build up the HSP as an excellent science park and a driver of economic development in Taiwan. Director General of the Science Park Administration Hsinchu Science Park April 2009 Annual Report 2008 HSINCHU SCIENCE PARK Abstract The HSP strives to establish a humane environment with The Science Park Administration, is the administrative center of the park, which elements of R&D, production, work, living, and entertainment. The park also aims to attract high-tech talent, introduce high-tech technology, establish a base for high-tech industry development, and upgrade domestic industries. The government has so far invested NT$79.6 billion in hardware and software construction at the HSP since its establishment in 1980. The Hsinchu Science Park governs five satellite parks at present, including Jhunan Park, Tunglou Park, Longtan Park, Hsinchu Biomedical Science Park, and Yilan Science Park, with a total land area of 1,373 hectares. Hsinchu, Jhunan, and Longtan Science Parks are currently in operation. As of the end of 2008, the HSP contained 430 high-tech companies and 130,577 employees. Annual sales revenue reached NT$ 1.008 trillion and paid-in capital totaled NT$ 1.14 trillion. The HSP is located in northwest Taiwan encompassing districts of Hsinchu City and Hsinchu County. Academic and research institutes, e.g. ITRI, National Tsing Hua University, and National Chaio Tung University, are located nearby, providing the HSP with ample human resources, on-job training chances for employees, and collective research facilities. Besides the National Synchrotron Radiation Research Center, the National Applied Research Laboratories are also located at the HSP, including the National Center for High-Performance Computing, the National Space Organization, the National Chip Implementation Center, National Nano Device Laboratories, and Instrument Technology Research Center. Moreover, the National Health Research Institutes and Animal Technology Institute of Taiwan are also established at the Jhunan Science Park Science. fighting services, and security enhancement. There are six industry categories at the HSP: integrated cir ANNUAL REPORT 2008 HSINCHU SCIENCE PARK I. Overview or university related institutes in the U.S. Furthermore, the Asia-based Asian Science Park Association (ASPA) currently has more than 40 members. Based on membership of the above organizations, there are currently over 500 science parks globally. Each park association frequently convenes seminars and training programs, provides a platform for experience exchange between newly established and developed parks and encourages inter-park collaboration. In early 21st Century, programs and assistance provided by these associations have enabled many emerging nations to develop their own science parks, e.g. Nigeria in Africa, Iran and the United Arab Emirates in Middle East, Thailand and Vietnam in Asia, etc. Comparing to other well-known overseas science parks, key characteristics of the Hsinchu Science Park include infrastructure construction and investment; support from research organizations, institutes and universities for the development of industrial technologies; a contact network for industry, government, academia, and research organizations inside and outside the Hsinchu Science Park; and the provision of II. Development of Science Parks in Taiwan I. Development Status of Global Science Parks Since the Stanford University Science Park was established in California of the United States in 1950, science parks have been established consequently worldwide. This successful business model was duplicated throughout the United States in the 1960's, in Europe in 1970's, and then globally during subsequent decades. The effort of constructing science parks has become the trend in Asia since 1980s and a science park has become one of the most attractive regional development models used in local economic and industrial reconstruction. 10 Success of science parks results from the way of academic resources integration, technology innovation, and efficient capital utilization. According to the classification method proposed by Dr. Castel and Dr. Howard, professors at UC, Berkeley, USA, management models for global hi-tech parks can be divided into four types: type 1 parks act as an industrial complex (including universities, enterprises, and incubation centers) used to form hi-tech industry clusters. Typical examples of this type of science park are Silicon Valley and Boston Route 128 in the U.S. Type 2 parks are science cities with administrative features, e.g. the former Siberian Science City in Russia, Daedeok in South Korea, and Tsukuba in Japan. Moreover, type 3 parks are mainly technology parks, such as Sophia Antipolis in France and Cambridge in the United Kingdom. Finally, type 4 parks resemble type 2 parks, which are state-run, such as "High Technology City" in Japan. Currently, certain international organizations are developing platforms for experience exchange among global science parks, including the Europe-based International Association of Science Parks (IASP), which is headquartered in Spain and has more than 349 global members from 71 countries. Another is the U.S.-based Association of University Research Parks (AURP), which is headquartered in Arizona U.S.A., It has 200 members from 13 countries, 90% of AURP members are research parks The policy of Taiwan in relation to science park development is to create ideal parks that not only emphasize the importance of production, lifestyle, development, ecology, and life but also consider environmental protection, economic scale, and e-commerce. High-tech industries are taken as a development pivot for actively increasing high-tech industry clustering and developing a high-tech innovation cluster consistent to local needs and sustainable development practices. Overview administrative services for park members. 11 Currently there are three major domestic science parks and eight satellite science parks, located in northern, central, and southern Taiwan, (as revealed in Figure 1,) and attracting more than NT$ 3 trillion of investment. The annual sales revenue of the Hsinchu Science Park accounts for almost 10% of the total sales revenue of domestic manufacturing industry, with its technology competitiveness being the key to this achievement. Currently, the HSP governs five satellite parks, i.e. the Jhunan Park, the Tongluo Park, the Longtan Park, the Hsinchu Biomedical Science Park, and the Yilan Park, with a total development area of more than 1,373 hectares. The CTSP includes the Taichung Park, the Huwei Park, the Houli park, and the Erlin Park, with a total area about 1,481 hectares. The STSP includes the Tainan Park and the Kaohsiung Park, with an area about 1,608 hectares. The total area of the above 12 parks exceeds 4,462 hectares. Figure 1 Current Development of Science Parks in Taiwan Longtan Park (107) Hsinchu Biomedical Park (38) under development Yilan Scienc Park (102) Hsinchu Science Park (653) Operated since 1980 under development Jhunan Science Park (123) Tongluo Science Park (350) North under development Houli Science Park (255) Central Taiwan Science Park (413) Operated since 2003 Erlin Science Park (716) under planning 12 Central Huwei Science Park (97) Southern Taiwan Science Park (1,038) South 旗山 Operated since 1996 Kaohsiung Science Park (570) Taiwan High-speed Rail National Highway Railway Current development of those three science park clusters as of the end of 2008 is described as follows: (I) Hsinchu Science Park As of the end of 2008, the HSP contained 430 high-tech companies, with 130,577 employees. Annual sales revenue reached NT$ 1.008 trillion in 2008 and paid-in capital totaled NT$ 1.14 trillion. The HSP encompasses an area of approximately 653 hectares, where semiconductor and optoelectronics industries are major industry clusters. Members of the HSP include over 60 companies spun off from the Industrial Technology Research Institute, National Tsing-Hua University, and National Chiao Tung University, practicing the close relationship between universities and science parks. Regarding employee educational background, 70% of HSP employees had completed junior college; restated, more than 27,000 possessed Master's Degrees and over 1,600 possessed Ph.D. degrees. To cooperate with Park companies in solving the shortage of park land available for extension and construction, the HSP implemented the Extension Construction Plan along Park Avenues III and V which provides approximately 31 hectares of land, of which 21 hectares are designated as the HSP industrial zone. Currently, TSMC and PSC have constructed fabs and plants within this zone, creating about 9,500 employment opportunities. Overview ANNUAL REPORT 2008 HSINCHU SCIENCE PARK In response to the global development trend, Taiwan began preparations for its first science park in 1980-the Hsinchu Science Park (hereafter referred to as the HSP). By learning from the successful experiences of Silicon Valley in the U.S., the HSP has successfully contributed to economic development of Taiwan. The HSP is generally acknowledged to be one of the most successful science parks in the world. The economic environment and timing of its establishment have laid the foundation for its success. The Taiwanese government constructed the Southern Taiwan Science Park (STSP) and Central Taiwan Science Park (CTSP) in 1996 and 2001, respectively. Since early 2001, the Jhunan Science Park began providing businesses with means of establishing their offices and factories in the Park. The primary focus of development of the Jhunan Science Park is optoelectronics and biotechnology industry clusters. The Jhunan Science Park is located close to the HSP, has a total area of about 123 hectares, with 34 companies and 10,000 employees. In response to the need of Park companies to extend their production facilities, the park acquired approximately 18 hectares of land for expansion and constructed 40 standard fabs for biotechnology enterprises. The Tongluo Science Park is located in Miaoli County and has an area of 350 hectares. Future plans for the park include introducing industries like IC design, System in Package (SiP), digital content, optoelectronics, aerospace, biotechnology, and machineries, as well as establishing a Hakka Cultural Park. The necessary infrastructure is currently being established and the 4-hectare Hakka Cultural Park started construction in 2008. Currently, there are three companies, one of them is the renowned TFT-LCD maker AU Optronics Corp. (AUO), stationed at the Longtan Science Park, which has a total area of 107 hectares. The park will be developed in two phases: the first phase involves land development of 76 hectares, while the second phase involves 31 hectares. The completed park is expected to provide 10,000 employment opportunities. The Hsinchu Biomedical Science Park has a total area of approximately 38 hectares, divided into a medical compound zone, R&D incubation and biomedical industrial zone, and public utility zone. Infrastructure of the park has been completed. The Science Park Administration is actively planning to construct a biomedical plant, an innovation 13 The Yilan Science Park has an area of approximately 102 hectares, including 70.63 hectares for the Chengnan Base in Yilan City and 31.8 hectares for the Chunghsin Base in Wujie Township, which is the planned location of a telecommunications knowledgebased service park. Environmental protection evaluation and medication of urban planning and zoning have been completed at these bases. Land acquisition is expected to proceed at the Chengnan base soon. Organizational Structure of the Science Park Administration National Science Council, the Executive Yuan Police Company Labor Affair Division Business Division PR Office Construction Management Division Land Development Division Information Office Personnel Office Secretary Office Ethics Office Accounting Office Project Office Hsinchu Biomedical Science Park : Coordination and contact Deputy Director General Chief Secretary Jhunan Science Park Longtan Science Park 15 Tongluo Science Park Yilan Science Park Section II Section I Section III Section I Section II Section III Section II Section I Section II Fire Brigade Section I Public Facilities Maintenance Section Section II Traffic Section Cleaning Squad Section I Archives Section General Affairs Section Si-Soft R&D Center Legal Affairs Office 14 : Supervision Investment Services Division Deputy Director General (III) Southern Taiwan Science Park The Southern Taiwan Science Park has a total development area of 1,608 hectares and is the second science park established in Taiwan. The park includes the Tainan Science Park, with an area of 1,038 hectares, and the Kaohsiung Science Park, with an area of 570 hectares, construction of which began in July 1996 and July 2001, respectively. The park mainly focuses on the optoelectronics, integrated circuit, precision machinery, biotechnology, and telecommunications industries, and recently has also begun developing the green energy and biomedical industries. As of the end of 2008, the park included 158 companies and 48,136 employees, with a total sales revenue of NT$ 547.5 billion. : Taskforces Director General Planning Division Table 1 Overview The "Science Park Administration" was established on September 1, 1980 and comprises six affiliated divisions, including planning, investment, labor affairs, business, construction management and land development. In addition to the mentioned five divisions, information, secretary, personnel, accounting and ethics offices provide park firms with one-stop administrative services and help recruit high-tech businesses. In 2008, the Science Park Administration has 239 employees. Notably, the government invested NT$ 79.6 billion in science park construction during the period from initial preparation in 1978 to December 2008. Section III The Central Taiwan Science Park included 20,736 employees and created a sales revenue of NT$ 286.2 billion in 2008. The Taichung Science Park is dominated by optoelectronics and precision machinery industry clusters, with an area of 413 hectares. A total of 54 companies, e.g. AUO Rexchip Electronics, and Promos, were approved to operate in the CTSP as of the end of 2008. The Houli Science Park has a total area of approximately 255 hectares and four companies have been given approval to commence operations as of the end of 2008. The Huwei Science Park has an area of approximately 97 hectares and is located close to the Taiwan High-speed Rail Station. Construction was started in December 2004, where two companies had been given approval to establish operations in the park as of the end of 2008. The Erlin Science Park was approved by "HSP Strategic Development Commission" of the National Science Council on August 20, 2008, as a number of candidate sites proposed by county/city governments, the master plan & construction work of the park is scheduled to start in July 2009. III. Organizational Structure of the Science Park Administration Section I (II) Central Taiwan Science Park Section II ANNUAL REPORT 2008 HSINCHU SCIENCE PARK incubation center, an epidemic prevention and control center, and a medical center. For promotion and recruitment of businesses to the park, the Administration attended Bio2008 in the U.S and visited the biomedical companies and CEOs to further publicize the HSP and attract global flagship companies to move into. II. Location & Surroundings II. Transportation Links I. Geographic Location Hsinchu Science Park: located in northwest Taiwan encompassing Hsinchu County and City. Jhunan Science Park: located in Jhunan Township of Miaoli County and adjacent to Hsinchu City in the north. Tongluo Science Park: located in Tongluo Village of Miaoli County. Longtan Science Park: located at the intersection of Longtan Village, Pingjhen City, and Yangmei Township in Taoyuan County. Hsinchu Biomedical Science Park: located in Jhupei City in Hsinchu County. Yilan Science Park: including the Chengnan and Chunghsing Bases, with the Chengnan base located in Yilan City, and the Chunghsing base located in Wujie Township of Yilan County. National Highway No. 1 (Sun Yat-sen Highway) and National Highway No. 3 are the main transportation links servicing the HSP. Vehicular traffic can enter the HSP at the HSP Interchange exit from National Highway No. 1 (Sun Yat-sen Highway). From National Highway No. 3, traffic can access the Hsinchu System Interchange and connect with National Highway No. 1 (Sun Yat-sen Highway). From the HSP it takes about 15 minutes to drive to the downtown area of Hsinchu City, 10 minutes to the Hsinchu Station of the Taiwan High-speed Rail, 70 minutes to Taipei City, 50 minutes to Taoyuan International Airport, and 2 hours north and south, respectively, to reach Keelung and Taichung harbors. ←Hs inch u Cit y 1 Hsinchu Interchange Jhu don HSP Interchange Location & Surroundings ANNUAL REPORT 2008 HSINCHU SCIENCE PARK (I) Hsinchu Science Park g Ci ty→ HSP Hsinchu System Interchange Longtan Science Park Hsinchu Biomedical Science Park Hsinchu Science Park Jhunan Science Park Hsiangshan Interchange Yilan Science Park Hsinchu System Interchange 3 1 3 Tongluo Science Park Taiwan High-speed Rail National Highway Jhunan Science Park Toufen Interchange Highway National Highway Highway 16 (II) Jhunan Science Park It takes approximately 20 minutes drive to the HSP from the Jhunan Science Park. Miao No. 2 County Highway (Science Road) is the main external transportation link servicing the Park, running east to connect with Provincial Highway No. 1, north to Hsiangshan where it connects with National Highway No. 3, and south to Toufen to connect with National Highway No. 1 (Sun Yat-sen Highway); thus, Miao No. 2 County Highway (Science Road) just provides the Park with easy access to southern and northern cities and counties in the western corridor of Taiwan. Additionally, traveling south on the Ke Jung Road enables rapid access to National Highway No. 1 (Sun Yat-sen Highway) from the Toufen Interchange. 17 ANNUAL REPORT 2008 HSINCHU SCIENCE PARK 1 National Highway Tongluo Science Park Expessway Highway (III) Tongluo Science Park (V) Hsinchu Biomedical Science Park The Tongluo Science Park is located approximately 50 minutes dr ive from the Hsinchu Science Park, and approximately 10km from the Miaoli Interchange and Sanyi Interchanges of National Highway No. 1 (Sun Yat-sen Highway). Park traffic can first take Provincial Highway No. 13 to connect with County Highway No. 128, and then Provincial Highway No. 6 to access or exit the Miaoli Interchange; alternatively traffic can drive directly to the Sanyi Interchange via Provincial Highway No. 13. The Hsinchu Biomedical Science Park is located about 10 minutes drive from the Hsinchu Science Park. To the west and east the park is, respectively, connected to the Jhupei Station of the North-south Railway, National Highway No. 1 (Sun Yat-sen Highway), the Hsinchu Station of the Taiwan High-speed Rail, and National Highway No. 3; among these, National Highway No. 1 (Sun Yat-sen Highway) is located 3.5km west of the Park, which can be accessed from the Jhupei Interchange via Guangming 6th Road, and National Highway No. 3 is located 5.5km east of the Park and can be accessed via the Chionglin Interchange. 1 HSINCHU SCIENCE PARK Youshih Interchange 1 Youshih Industrial Park Yangmei Interchange Pingjhen Industrial Park 18 Hukou Interchange Longtan Science Park Acer Aspire Park Dasi Interchange National Highway Highway Guansi Interchange 3 Longtan Interchange (IV) Longtan Science Park The Longtan Science Park is located about 40 minutes drive from the Hsinchu Science Park, 3 minutes d r i v e a n d 1 . 8 k m f r o m Ya n g m e i Interchange of National Highway No. 1 (Sun Yat-sen Highway), and 9 minutes drive and 6.1km from the Longtan Interchange of National Highway No. 3. (VI) Yilan Science Park Jhupei Interchange Hsinchu Stration of THSR The Yilan Science Park is located approximately 2 hours drive from the Hsinchu Science Park. The Chengnan Base of the YSP is 2km from the Yilan Station of the North-link Railway, and is by the east of the outer ring roads of the Yilan County Government Center which offer a connection to Provincial Highway No. 9. The Chengnan B a s e i s 3 k m f ro m t h e Yi l a n Interchange of National Highway No. 5, and it takes approximately 40 minutes to drive from the base to Taipei. Chunghsing Base is located about 1km away from Erjie Station and 2km away from Luodong Station on the North-link Railway. Provincial Highway No. 9 is located to the west of the park and provides its major transportation link, while Yilan County Highway No. 24 is located to the south of the park and provides a secondary external connection, with an approximately 4km journey to access the Luodong Interchange of National Highway No. 5. Hsinchu Interchange Hsinchu Biomedical Science Park NTHU Location & Surroundings Miaoli Interchange NCTU 3 HSP Interchange ITRT HSP Jhonglin Interchange Taiwan High-speed Rail National Highway Expressway Highway 5 Yilan Chengnan Base Wujie Chunghsing Base National Highway Highway Yilan Interchange Luodong Interchange 19 Many universities and technical institutes near the Hsinchu Science Park have provided the HSP with manpower, in-service training, consulting services, and collaborative research. Among these, National Tsing Hua University (NTHU) and National Chiao Tung University (NCTU) are well known for their famous departments of science and engineering. NTHU is focused on basic science and comprises seven colleges, while National Chiao Tung University is focused on applied engineering and comprises eight colleges. Each university has around 10,000 students. Other schools located near the HSP include National Hsinchu University of Education, Chung Hua University, Hsuan Chuang University, Minghsin University of Science and Technology, Yuanpei University, China University of Technology, Ta Hwa Institute of Technology and the Hsinchu Branch of the China Institute of Technology. Furthermore, National United University is located near the Tongluo Science Park, and National Central University, Chung Yuan Christian University, Yuan Ze University, Ching Yun University, and Vanung University are located near the Longtan Science Park. III. Park Planning Since 1980, a 653-hectare area has been developed. Besides the industrial areas, development has also included public utilities such as residential areas, schools, and parks. Besides, standardized factories constructed by the Science Park Administration and factories built by businesses on rented lots, various service businesses such as banks, warehouses, transportation, clearing agents, attorneys, CPAs, post offices, and clinics have also been established. The residential areas not only include dormitories for singles and married couples, but also leisure areas, e.g. basketball courts, tennis courts, swimming pools, and golf driving ranges. The National Experimental High School at Hsinchu Science Park (hereinafter referred to as NEHS) also offers educational services at kindergarten, elementary, junior high, senior high and bilingual levels, including both domestic experimental education and English-based bilingual education. NEHS at HSP Residential Area 20 Industrial Area Park Two major research institutes are located near the HSP, including the Industrial Technology Research Institute (hereafter ITRI) and the Food Industrial Research and Development Institute. ITRI is located about 5km east of the HSP and concerns itself with applied research and technology services, including technology induction, talent incubation, information provision, establishment of spin-off companies, provision of an incubation center, and technology service and transfer. ITRI is an important player in the development of Taiwanese Small and Medium-sized Enterprises and Industries. ITRI comprises six specific research laboratories, including "Electronics and Optoelectronics Research Laboratories," "Information and Communications Research Laboratories," "Mechanical and Systems Research Laboratories," "Material and Chemical Research Laboratories," "Energy and Environmental Research Laboratories," and "Biomedical Engineering Research Laboratories," five focus centers, including the "Display Technology Center," "SoC Technology Center," "Photovoltaics Technology Center," "Medical Electronics and Device Technology Center," and "Identification and Security Technology Center," and five linkage centers, including "Creativity Lab," "Nano Technology Research Center," "Industrial Economics & Technology Center," "Center for Measurement Standards," and "Technology Center for Service Industries," that together employ approximately 6,000 researchers. Over 60 HSP firms were established by ITRI via spin-offs or technology transfer. The Food Industry Research and Development Institute (hereafter FIRDI) focuses mainly on food and biotechnology research, and assists the domestic food and biotechnology industries in improving manufacturing processes, increasing quality and cutting costs, and also provides domestic food and biotechnology industries with basic facilities, technology services, and talent cultivation to assist in industry development. FIRDI currently has approximately 300 researchers. Besides the National Synchrotron Radiation Research Center (NSRRC), the HSP also includes the National Applied Research Laboratories (NARL), which includes the National Center for High-Performance Computing (NCHC), National Space Organization (NSPO), National Chip Implementation Center (CIC), the National Nano Device Laboratories (NDL) and the Instrument Technology Research Center (ITRC). Additionally, the National Health Research Institute and the Animal Technology Institute of Taiwan (ATIT) were established at the Jhunan Science Park. Location & Surroundings ANNUAL REPORT 2008 HSINCHU SCIENCE PARK IV. Academic Research Organizations and Institutes 21 4. Hsinchu Biomedical Science Park I. Public Facilities (I) Achievements in 2008 1. Hsinchu Science Park With the goals of constructing a high quality environment for the HSP, improving transportation facilities, enhancing service quality, and accelerating HSP associated construction to encourage firms to base themselves in HSP. Items completed in 2008 include: new construction of a 56-unit lakeshore dormitory, Park Avenue III and V development and construction projects, reconstruction engineering of the Lunyuan Single Dormitory, remodeling construction of the Duhsing Hostel, reconstruction of a garage at the back of the Park Recreation Center, and planning and design of a traffic control center. Construction projects in progress include land development involving 31 hectares on Park Avenues III and V and new construction of the Duhsing 40-unit Standard Plant. 2. Jhunan Science Park Completed Project 16 involving drainage engineering, sewage treatment plant Phase II expansion and betterment process, and selecting architects for designing and constructing the Science Park Administration building. 3. Tongluo Science Park 22 The main mission in 2008 for the Science Park Administration was to implement the public facilities at Tongluo Science Park. Work continued on the 1st, 2nd, and 4th bids in the 1st Phase development plan for the south side of the Park, including the completion of partial soil and water conservation facilities and sidewalk construction work. Progress on the park during 2008 was focused on the construction of public facilities, with items completed include: the preparation of 38 hectares of land for construction, the construction work of water supply facilities, a management center, and an underground parking lot, and the selection of architects for the design and construction work of 30 standard plants. Additionally, construction projects currently being implemented include landscape construction work and surrounding public facilities. (II) Construction Targets in 2009 1. Hsinchu Science Park Construction works to be completed include the Duhsing 40-unit Standard Plant, improving pavements in the HSP, reconstruction engineering for the Meiyuan Single Dormitory, wall improvement of the Administration building, the park traffic control center, planning and designing of the Traffic Transfer Station, and road construction work beside National Experimental High School. Construction projects in progress include construction work of Park Avenue III and V. Infrastructure ANNUAL REPORT 2008 HSINCHU SCIENCE PARK III. Infrastructure 2. Jhunan Science Park Improvement works of park road, traffic, and drainage systems, as well as construction design of the Park Management Office and sewage treatment plant phase II expansion. 3. Tongluo Science Park Road improvement, soil and water conservation, land preparation, sewage treatment plant, water reservoir, and pump station. 4. Longtan Science Park Water reservation review, preliminary relocation of public facilities, and construction design of road and sewage treatment plant. 5. Hsinchu Biomedical Science Park Green landscape construction for surrounding and central areas of the park, construction design of a 30-unit standard plant, and installation of public artwork. 6. Yilan Science Park Chengnan base, infrastructure design & development at master plan layout, public facilities construction. 23 ANNUAL REPORT 2008 HSINCHU SCIENCE PARK (I) Power Supply HSP power consumption is currently 1.1 million kilowatt ( Ta b l e 2 ) a n d i s e x p e c t e d t o ultimately reach 1.5 million kilowatt. To ensure the power stability throughout the HSP and to prevent poweroffs, the Science Park Administration has commissioned scholars, professionals, the Taiwan Power Company, and representatives from the Association of Industries in the HSP, to form the HSP Power Supply Quality Improvement Advisory Committee and Implementation Team, to provide Park firms with consultation services regarding power use safety, power supply, and management systems; to assist in power use education and training; and to host an event dealing with "Consulting and Demonstration of Power Safety Inspection". During 2008, 12 instances of consultation and three of demonstrations of the power safety inspection were conducted, and Implementation Team Meetings on "Power Safety and Quality Improvement" were held quarterly. To improve power supply quality and to enhance the power supply reliability at the HSP, Taipower undertook a series of remodeling and new construction of HSP substations. The improvement works include making the Longshan Secondary Substation (located at the HSP Phase II area) the primary distribution substation, a modification that was added to the system in December 2008. New construction of the Longmei Primary Distribution Substation (located in the HSP Phase III area) was included in the system in June 2007, and new construction of the Chuyuan Extra High Voltage Substation (located at the HSP Phase III area) is expected to be added to the system in June 2011. Following the completion of the remodeling and the new construction for each substation, the capacity of the main transformer considerably increases the reserve power supply and simultaneously increases the number of connection lines in each Table 2 HSP Peak Monthly Power Load substation, thus providing a reliable multi-loop power supply system for HSP members. Particularly, following the completion of the Chuyuan Extra High Voltage Substation, it has become possible to supply the HSP with abundant and high quality electric power and solve the problem of overloading of the main transformer in Ermei Extra High Voltage Substation, leading to power supply being unaffected by whether power is maintained or interrupted at the Tunghsiau Power Plant. (II) Natural Gas Supply Natural gas is currently used by 31 companies at the HSP, and is provided by the Hsinchu and Chutung gas lines, both of which are single-loop systems. The CPC Natural Gas Co. proposed modifying the HSP Phases II and III gas supply systems into dual-loop programs. The CPC Natural Gas Co. listed a special construction budget in 2008 and related construction works, were completed in December 2008. The CPC Natural Gas Co. has applied for approval by Taiwan Area National Freeway Bureau, MOTC to construct additional pipeline crossing over National Highway No. 1 (Sun Yatsen Highway) to complete the gas supply at the HSP. (III) Water Resource Supply The HSP demands approximately 133,000 tons of water (Table 3) daily. The HSP currently implements various water supply measures, including public water reservoir facilities of the Science Park Administration, water reservoir facilities of individual Park companies, the Paoshan Reservoir, Yongheshan Reservoir, and Long-En Weir 2nd Water Treatment Plant. As the expansion construction and related pipeline trunk construction for the Paoshan Water Treatment Plant are completed, the Paoshan Reservoir will be able to be operated simultaneously with the Long-En Weir of Touchien River, which is expected to increase the daily water supply to the Hsinchu area by 282,000 tons, a phenomenon that may conform to the requirements of civil and industrial water consumption for Hsinchu area until 2021. Table 3 HSP Monthly Water Consumption Unit: 10k tons Unit: 10k kilowatts 24 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 91.25 89.43 2004 11.44 10.91 10.38 9.72 12.30 11.33 11.87 12.55 12.27 12.37 11.25 11.02 91.77 86.55 93.01 2005 10.99 10.89 11.19 11.76 11.84 13.16 12.86 12.76 12.42 12.75 12.28 12.02 97.56 101.92 102.84 104.09 102.91 104.66 107.67 96.30 96.32 2006 11.70 11.94 11.56 12.19 12.58 13.29 13.41 13.44 12.83 13.14 12.80 11.65 2007 114.42 105.39 108.36 102.17 110.88 111.32 109.80 112.80 107.30 105.02 106.63 95.90 2007 11.90 11.68 12.63 12.30 13.40 13.64 13.93 13.53 13.77 13.46 13.09 12.33 2008 112.85 2008 12.53 12.72 12.78 13.20 13.50 13.20 13.69 13.67 12.74 12.38 10.53 8.67 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2004 87.99 86.83 91.19 97.54 97.60 94.21 92.32 89.79 91.80 91.61 2005 88.75 87.62 98.55 101.60 98.62 92.09 96.64 93.47 93.44 2006 92.08 94.48 102.70 92.72 97.74 98.99 105.91 108.50 111.40 108.48 108.73 108.12 Data source: Hsinchu Branch, Taiwan Power Company Dec 97.62 86.01 Infrastructure II. Energy Management Data source: Taiwan Water Corporation 25 III. Transportation Network Furthermore, Taiwan Water Corporation has signed a contract with the Taiwan Joint Irrigation Association, stating the adjustment period for agricultural water supply transfer will be 100 days between the annual 1st and 2nd crops and will involve 5 million tons of water transfer. The transfer fee will be NT$ 2 per ton, meaning NT$10 million is needed to perform the process, and the Science Park Administration and Taiwan Water Corporation will share these fees according to the proportion of public and civil water supplies. Currently, the total water distribution volume for Hsinchu area is 450,000 tons per day, meaning the HSP accounts for a third of total water consumption in Hsinchu area. The Science Park Administration thus will bear approximately NT$ 3.33 million in fees. Consequently, an initial market mechanism has been established for water resource transfer, enabling the full utilization of water resources to maintain civil and industrial development in Hsinchu area. The land development of Park Avenue III and V was initiated simultaneously with the plant construction of TSMC and PSC, and is designed to accommodate 10,000 road users daily. The HSP Administration has widened special road V to a width of 12m on the west of the Shichu 3rd road to relieve traffic flows upon the completion of construction. Regarding water conservation advising: since 2002, the Water Conservation Advisory Group has been established in the HSP, with members including scholars, specialists from the Committee of Water, Electricity, and Gas of the HSP Industrial Association, as well as the Water Conservation Service Group of ITRI. As of the end of 2008, the Water Conservation Service Group of ITRI had completed 91 advisory sessions related to water conservation techniques, after analyzing and comparing overall water consumption and recycled water volume, annual water conservation volume has reached up to 66.39 million tons. (II) Public Transportation System (I) Construction of Outwards and Inwards Roads in the HSP 1. Design and planning for widening of the Shichu 3rd road in the HSP The Shichu 3rd road in the HSP is one of the main outbound roads in the HSP and is located between Phase III and Park Avenues III and V of the HSP. Road widening of Shichu 3rd Road has been completed and is expected to help relieve park traffic flows. 2. Construction of special road V 3. Construction of broadband network The Science Park Administration has promoted three wireless broadband application services, including mobile service, mobile life, and mobile learning; additionally, the administration has constructed a twin-network environment in the HSP to activate the third Trillion-dollar-worth Telecommunications Industry in Taiwan by introducing broadband fiber network to the HSP to support the "M-Taiwan Project" for which the Executive Yuan has authorized spending of NT$500 billion over 5 years. Infrastructure ANNUAL REPORT 2008 HSINCHU SCIENCE PARK 26 Before completing the expansion construction for the Paoshan Water Treatment Plant, the Water Resource Agency and Taiwan Water Corporation processed water pipeline construction from the Paoshan 2nd Reservoir to the Hsinchu 2nd Water Treatment Plant via Ketzuhu River to resolve the problem of water supply for Hsinchu area; the completed construction of water pipeline will have a maximum water piping amount of 180,000 CMD. Additionally, those Park firms have adopted emergency measures such as the transfer and distribution of the 4th pump station and agricultural water supply to resolve the fallow compensation problem derived from the spring cultivation and heading period in the Touchien River Basin irrigation area. 1. Shuttle buses The park continued efforts to promote use of free HSP shuttle buses, the service range of which covers the entire HSP and extends to the living utility area. Notably, directly providing HSP employees with a commuting service serving communities along Guangfu Road can facilitate connections with public transportation services such as National Highway Coaches, Hsinchu City Buses, and Hsinchu Coaches. Furthermore, the service range of the HSP Shuttle Buses has been extended to the Jhunan Science Figure 2 Daily Average No. of Passengers Using Shuttle Buses at the HSP in 2008 Unit: People 4,500 4,000 3,949 3,808 3,926 3,822 3,916 3,755 3,927 3,948 3,993 3,815 3,783 3,723 3,500 3,000 2,500 2,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 27 2. National highway coach services Currently, three national highway coach companies - UBus, Yalan Bus, and King Bus - have established services within the HSP. A transfer station has been established in the Science Park Life Hub for the HSP shuttle bus and the three coach companies to provide HSP employees, who live in Taipei, Taoyuan and Taichung areas, with a convenient public transportation service. 3. Bike lane The HSP Administration is planning and designing bike lanes and pedestrian paths together to save energy and construct an excellent traffic environment. Bike lanes are designed around the traffic structure of the HSP and then extended outwards to other areas. (III) Parking Lot Construction and Management 1. Establishment of the parking availability information system at the Science Park Administration. 28 The parking availability information system for the Science Park Administration has been completed, in an eye to relieve shortage of outdoor parking spaces via the following measures: (1) Directing drivers to outdoor parking lots available to reduce use of street parking and illegal parking. (2) Utilizing existing parking facilities efficiently, through parking space supply and demand control and optimizing parking capacity utilization. (3) Minimizing the negative impacts of cars waiting for parking spaces, such as time loss, environmental burden, fuel consumption, traffic interference, and traffic jam at the entrance of packing lots. (4)Providing the parking space information for drivers before trip and en-route. The parking availability information system was completed in 2008, which includes two par ts: (1) on-site vehicle monitoring equipment, which provides information on available parking spaces and (2) on-site parked vehicle flow monitoring system, which collects information for traffic control. 2. Establishment of parking lots on the outskirts of the park Three public parking lots were completed in 2008 and their operations were outsourced, which saves manpower and provides the public with convenient parking facilities. 3. Street parking spaces Idle public land was used to construct street parking lots. Businesses were encouraged to set up street parking lots, which were supplemented with street parking space zone and 3-dimensional parking facilities constructed to provide sufficient parking spaces for park employees. Infrastructure ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Park, the Hsinchu Station of the Ta i w a n H i g h speed Rail, and the Hsinchu B i o m e d i c a l S c i e n c e Pa r k , which together provide a convenient transportation service network. Along with the expansion of the service scope, the extension of service hours and significantly increased passenger numbers, average daily passenger numbers have exceeded 4,000 this year (Fig. 2), not only reducing the proportion of HSP employees using private transportation tools, but also gradually relieving traffic flows in the HSP, as well as reducing traffic jams. (IV) Improvement of Traffic Facilities 1. Bilingual street signs Around 200 street signs at the HSP were replaced by bilingual signs in 2008 for convenience of foreigners. 2. Intelligent traffic signal control Apply science and technology management to urban traffic management, completing the planning and design of advanced traffic control center, and combining a communication network, vehicle detector, intersection imagery monitoring system, CMS, and computerized signal linking system to collect road information, optimize management decisions, and reinforce urban traffic control and ability to respond to contingency. 3. Route dispatch equipment Complete the route dispatch planning and design of the Yuancyu 1st Road (Guangfu Road to Industrial E. 3rd Road) and Tziyuan route by equipping them with "Electronic signals." When the electronic red signal is on, the road signal is "red" too that drivers can see from 200m in distance; also, easy repair and maintenance service of "Electronic signals" help reduce the manpower and materials required for the repair and maintenance of route dispatch. 29 The HSP Administration and the Institute of Transportation, MOTC have worked together to construct a travel time reporting system on Yuancyu 1st Road in front of the Police station telling travelers of the traveling time of each route to increase the efficiency of public road use. IV. Land Planning Currently the Parks that provide land for firms to rent include the Hsinchu Science Park, the Jhunan Science Park, and the Longtan Science Park. Additionally, the Tongluo Science Park, currently under construction, will also offer rentable land in future. Land use conditions for each science park are as follows: (I) The Hsinchu Science Park mainly includes six major industries, namely IC, computers and peripherals, telecommunications, optoelectronics, precision machinery, and biotechnology; moreover, currently there are no vacancies at the park. 28 hectares of land along Park Avenues III and V, acquired in 2007 for expansion construction, has already been leased to TSMC, PSC and VIS. (II) The Jhunan Science Park is focused on development of optoelectronics and biotechnology industries, and has occupancy of approximately 95%, with only 4.12 hectares of land currently available. Additionally, several firms are in the process of evaluating land available for rent. The Science Park Administration will carefully process land distribution operations in accordance with firm requirements, and is expected to rapidly complete all land use operations. (III) The Longtan Science Park development prospectus and plans were approved by the Ministry of Interior on June 13, 2008 and the park is ready for use. AUO has completed the construction of a manufacturing plant and 1.79 hectares are available for the construction of dormitory. QLink Technology Inc., DelSolar Co., Ltd., and Wafer Works Corp. have rented land for the construction of a manufacturing plant. The license for plant construction will be issued upon the completion of zoning by the Taoyuan County Government. (IV) The Tongluo Science Park has already acquired land and is currently processing infrastructure and public facility development, meaning it has not yet officially accepted applications for land use except for 4.3 hectares leased to the Center for Hakka Studies, Council for Hakka Affairs, Executive Yuan. Tongluo Science Park will conduct continuous business recruitment and discussion with companies or organizations willing to locate at the park. Upon the completion of the construction of this infrastructure and public facilities, the park will promptly assist interested companies and organizations with their relocation to the park. The advanced IC Back-end Packaging and Test Technology (SiP) industry is expected to be introduced to the park to form the IC Packaging and Testing industry clusters. Infrastructure ANNUAL REPORT 2008 HSINCHU SCIENCE PARK 4. Advanced traveler information system ( V ) The Nankong National Biotechnology Science Park: the "National Biotechnology Science Park" project was authorized by the Executive Yuan on December 4, 2007 and the park is located in Nankong Taipei, bounded by Chung Hsiao E. Road to the north and Academia Sinica to the east. The park is located within the perimeter of Plant 202, Production and Manufacturing Center of the Weapons and Armament, Ministry of National Defense, has an area of 25.31 hectares, and upon completion will be managed and operated by Academia Sinica. V. Landscape Management 30 To provide a better investment environment, the Science Park Administration has processed maintenance of planting, environmental cleaning and drainage dredging for public areas and outdoor spaces of public buildings to maintain a beautiful landscape and clean public areas within the HSP. Self-constructed factories or plants should be maintained and managed by HSP companies or manufactures themselves; additionally, the Science Park Administration will conduct an annual Greening and Beautification Evaluation of Park Factories to jointly upgrade HSP environmental quality. (I) Landscape Management Operation To increase landscape maintenance efficiency and quality, the Science Park Administration has processed maintenance of planting, environmental cleaning and drainage dredging for public areas and outdoor spaces around public buildings in the Hsinchu, Jhunan and Longtan Science Parks, representing a total area of 821 hectares. 31 (II) Greening and Beautification Evaluation for Factory Buildings HSP members are required to manage and maintain their self-constructed areas. The Science Park Administration includes performance in maintaining selfconstructed landscapes in its ongoing evaluation of park firms, and has invited scholars and specialists to participate in evaluations by offering suggestions that can enhance the quality of park landscape maintenance. Interested companies were invited to enroll in an initial evaluation of self-constructed greening and beautification in February 2008, 33 HSP members responded, and in March 2008 were awarded 15 first prizes, 10 second prizes, and eight third prizes. VI. Environmental Protection 32 Environmental protection work includes operation and maintenance of sewage treatment plants, environmental quality monitoring, control of total pollution effluent at the park, permit and review of industrial air, water quality, waste and recycling, pollution preventing consultation services, industrial waste classification and resource recycle and reuse management, as well as follow-up management that considered environmental impact evaluations. The Hsinchu Science Park contains four sewage treatment plants, including Hsinchu, Duhsing, Jhunan and Longtan. The maximum daily capacity for Hsinchu and Duhsing sewage treatment plants together is 185,000 tons, and since they are the largest domestic treatment plants they process Class III industrial wastewater. Most of the processing facilities are indoors, and actual sewage processing capacity in 2008 was about 105,000 tons per day with an average quality of effluent in BOD5 10 mg/L; COD 25.2 mg/L; SS 7.3 mg/L, well above the national standard for effluent. The Hsinchu Science Park sewage drainage system obtained the "ISO 14001 Environmental Management System" certificate in 2000; making it the first industrial wastewater treatment plant in Taiwan to acquire the certificate and to date still maintains the approvals of the certifying companies. In 2005-2007, the HSP sewage drainage system was awarded the Excellence Award for "Evaluation of Sewage and Drainage System in an Industrial Park" from the Environmental Protection Administration and the "Environmental Protection Engineering Award" from The Chinese Institute of Environmental Engineering in 2006. The processing capacity of the Jhunan sewage treatment plant is 20,000 tons per day, and actual sewage processed is 14,000 tons per day. In 2005-2007, the Jhunan sewage treatment plant obtained the Excellence Award for the "Evaluation of Sewage and Drainage System in an Industrial Park" from the Environmental Protection Administration. Meanwhile, the Longtan sewage treatment plant has processing capacity of 6,500 tons per day, but processes just 300 tons per day with the average quality of the effluent being well above the standard water quality of national effluent standards. Infrastructure ANNUAL REPORT 2008 HSINCHU SCIENCE PARK The Park Administration respectively conducted two sessions of the HSP Member Contract Per formance Evaluation and Satisfaction Survey on M ay 30 and S eptember 26, 2008, and obtained good results for both events. Furthermore, the Science Park Administration has also actively inspected and required HSP contractors and members to enhance the maintenance and improvement of the surrounding environment. Owing to its focus on the aged planting areas, the Science Park Administration has required member firms to maintain the beautified tree shapes, penetration and ventilation. Bush and hedgerows should be maintained according to original plans through pruning. Regarding green lands, turf should be carefully maintained and grown to conform to the principle of no soil being left uncovered to ensure an attractive park area. Key points regarding environmental protection working performance in 2008 were as follows: (I) Pollution prevention, implementation of total pollution effluent mass control, and environmental protection permission The HSP has already established controls of total pollution effluent, and new HSP members or members with production increase are required to first estimate their total pollution effluent discharge and then pass various environmental assessments before commencing operations. In 2008, there were 653 applications 33 ANNUAL REPORT 2008 HSINCHU SCIENCE PARK (II) Promotion and Counseling for HSP Tenants for Waste Recycling and Resource Reuse Business units and organizations in HSP have all put enormous efforts into promoting waste reduction and resource recycling and reuse. In 2008, the ratio of waste classification and resource recycling and reuse has reached 64.35% for business units and organizations in the HSP. The Science Park Administration has also commissioned external professional teams to conduct on-site counseling related to waste recycling and conduct a review of fluoride recycling for HSP companies. (III) Operation of Sewage Treatment Plant and Sewer Related Business 34 Processing facilities were renovated and pipeline maintenance was performed for the HSP sewage treatment plant. Furthermore, 2,322 inspections were performed on industrial wastewater, 360 sewer manholes were cleaned, and about 15,000 meters of sewer were dredged. In 2008, the park also completed the second three-year review and reinspection of the sewage treatment plant and obtained approval certification. Two meetings of the Environment Management Committee were organized, and a regular external audit was organized to maintain the certification of the ISO 14001 Environment Management System for sewage treatment plants in the HSP. (IV) Hosting Educational Seminars In 2008, a regulation education seminar was held, involving over 12 sessions, to increase business and industry knowledge of business permit inspection procedures and environmental protection regulations, exchange and share learning experiences related to technology operation for park facilities, and achieve the purposes of twoway communication. Infrastructure filed for related Industrial Fixed Air Pollutant (device, operation) Permit, Water Pollutant Prevention Measure Planning Permit, Industrial Waste Cleaning Proposal, Resource Recycle and Reuse (including industrial waste reuse) and the total pollution effluent mass at the HSP. Additionally, on-site inspection and followup counseling have been conducted for 198 HSP companies to understand the current situation regarding the implementation of each pollution prevention measure, and counseling has also been conducted to solve environmental protection issues. Annual "Labor Safety & Environmental Protection Month" programs help enhance exchanges among Park tenants, increase awareness of risk management, and prevent occurrence of accidents, with the ultimate goal of realizing "Overall Environmental Protection." (V) Constant Progress on Environmental Evaluation at the HSP Projects organized by the "EIS Follow-up and Counseling Team" of the National Science Council, Executive Yuan conduct regular follow-up related to EIS once every 6 months and follow-up environmental protection evaluation from time to time at the HSP. (VI) Establishment of the "HSP Environmental Protection Monitoring Team" Specialists and scholars, environmental protection authorities, representatives of civil societies & communities, environmental protection groups, HSP tenants, and representatives of the Science Park Administration establish the "HSP Environmental Protection Monitoring Team," which holds regular bi-monthly meetings to discuss various environmental protection work at the HSP. Additionally, the Science Park Administration has established a 24-hour environmental protection hotline for immediate response of public petitions. Besides on-site inspection on the operation of pollution prevention facilities, it is necessary to arrange continual follow-up measures. 35 ANNUAL REPORT 2008 HSINCHU SCIENCE PARK (I) Extension along Park Avenue III and V This base is located at the boundary between Hsinchu County and City and covers the area running north to Park Avenues III and V, east to Paoshan Road, south to the roads of Special Projects V and VI, and west to the green land alongside National Highway No. 1 (Sun Yat-sen Highway). Extension along Park Avenue Ⅲ and V is designed to improve park landscape and to resolve the lack of land available at the HSP. Land acquisition of the extension has already been completed and 5 12" Wafer Fabs, two belonging to TSMC, two belonging to PSC, and one belonging to VIS, plan to set up at the extension area, where plant construction of TSMC and PSC is already in progress, demonstrating the commitment of high-tech industry to Taiwan and their effort of upgrading the overall semiconductor industry technology to 32 nanometers. Total investment in the base reaches approximately NT$ 366 billion for the 1st and 2nd phases and will create 9,500 employment opportunities. (II) Jhunan Science Park Development of public facilities at the Jhunan Science Park was completed in three phases following initial land acquisition in 1999. Therefore, there are only 4.12 hectares of land available for use currently. (III) Tongluo Science Park 36 The park has a total area of approximately 350 hectares. The outward connecting roads to the south of this base have been completed and infrastructure is currently being constructed. (IV) Longtan Science Park The park has an area of approximately 107 hectares. The first phase of construction, involving 76 hectares, has been completed and involved the construction of public facilities where firms can station themselves and operate. The second phase of construction, involving 31 hectares, is currently underway; environmental assessment, soil and water conser vation inspection and land use modification have been completed, and land acquisition is expected to be completed in 2008 upon the completion of park zoning. (V) Hsinchu Biomedical Science Park The Hsinchu Biomedical Science Park has an area of approximately 38 hectares, and to date park activity has mainly included the construction of various public facilities, completed in March 2008. The "industrial zone" developed for plant construction has an area of 24 hectares. Staff of the Hsinchu Biomedical Science Park will attend biomedical industry conventions and exhibitions in 2009 to recruit businesses in the United States, in an eye to increase the profile of the park, and to attract international businesses to station themselves at the park. Staff of the Hsinchu Biomedical Science Park has also visited domestic biomedical manufacturers to encourage them to relocate to the park and construct a full range of pharmaceutical and medical equipment at all levels of the industrial chain, from R&D to the upstream, midstream, and downstream. Infrastructure VII. HSP Extension (VI) Yilan Science Park In order to fulfill domestic industrial demand and to comply with global high-tech development trends, this Park is intended as a Communication Knowledge-based Service Park. The Park includes two bases: Chengnan and Wujie Chunghsing in Yilan; urban planning modifications for both bases have been approved by the Ministry of the Interior and the environmental impact assessment has passed by the EPA. Land acquisition for the Chengnan base is completed and construction is in progress. Land acquisition and development for the Chunghsing base following compensation for structures on the ground is negotiated and arranged by State-owned Enterprise Commission. 37 IV. Industrial Development and Introduction of Investment Figure 3 Sales Revenue Growth at the HSP Unit: NT$ 100 million 14,000 11,462 12,000 10,859 9,293 8,000 3,997 4,000 2,000 0 Figure 4 6,625 7,054 6,509 6,000 1,290 1,778 777 870 1991 1992 1993 1994 10,080 9,879 8,578 4,550 2,992 3,182 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Paid-in Capital Growth at the HSP Unit: NT$ 100 million 14,000 I. Overall Industry Soaring oil prices, the sub-prime crisis in the United States, bankruptcies of financial institutions, and global political instability caused enormous economic uncertainty in 2008. Good decision-making by government over high-tech development, construction of a high quality investment environment, and one-stop service provided by the HSP have attracted domestic and international enterprises to the park, helping stimulate comprehensive industrial chain development. The HSP is proud to host the most comprehensive semiconductor industry in the world and has set a global example of semiconductor industry success. Besides semiconductor industry, optoelectronics industry at the HSP has also performed excellently, where a comprehensive industrial chain has been constructed including flat panel display, LED, and solar energy. 38 Regarding the sales revenue of the six major industries at the HSP, which totaled NT$1.008 trillion in 2008 (Fig. 3), 70% were from IC industry, which reached annual sales of NT$ 704 billion in 2008. Wafer manufacturing, including OEM and ODM, contributed NT$386.1 billion, representing 55% of IC sales revenue. Wafer manufacturing was followed by circuit design, with sales of NT$ 217 billion, accounting for 31% of total IC industry sales revenue. This strong performance demonstrated the ample capacity and strong capabilities of Park IC design industry. Meanwhile, optoelectronics industry sales reached NT$176 billion, ranking secondly at the HSP. Sales revenue of optoelectronics industry was dominated by flat panel display, with sales of NT$135.7 billion. The third-largest industry at the HSP is computers and peripheral products, which achieved a sales revenue of NT$77.7 billion, followed by telecommunications industry, with sales of NT$32.4 billion, precision machinery industry, with sales of NT$11.8 billion, and biotechnology industry, with sales of NT$3.6 billion. Regarding introduction of new industries to the park, a total of 50 new firms received approval in 2008 to station themselves at the HSP for investment and production, representing an investment of NT$29.05 billion, marking a 24% year-on- 11,639 11,514 11,398 12,000 10,000 8,588 6,000 5,106 Figure 5 5,660 3,756 4,000 0 10,501 10,402 6,945 8,000 2,000 9,100 9,925 Industrial Development and Introduction of Investment ANNUAL REPORT 2008 HSINCHU SCIENCE PARK 10,000 11,209 2,584 551 628 669 1991 1992 1993 935 1994 1,477 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Company Growth at the HSP Unit: No. of Companies 450 400 369 350 300 245 250 292 289 1999 2000 312 382 395 2004 2005 2006 416 430 2007 2008 334 203 200 150 272 384 137 140 1991 1992 150 165 180 1993 1994 1995 100 50 0 Figure 6 1996 1997 1998 2001 2002 2003 Employment Population Growth at the HSP Unit: Person 140,000 121,762 113,011 114,863 120,000 96,642 96,293 98,616 101,763 100,000 80,000 68,410 72,623 82,822 54,806 60,000 40,000 129,512 130,577 33,538 42,257 23,297 24,788 28,416 20,000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 39 provide the business environment most favored by high-tech businesses in Taiwan. II. Individual Industries (I) Integrated Circuits (IC) The HSP contained 197 IC industry firms in 2008, generating a sales revenue of NT$704 billion. The semiconductor industry in the HSP developed smoothly in 2008. Facing a global recession and falling DRAM prices, the HSP IC industry has adopted a flexible market deployment and product development strategy to stabilize the market. The Science Park Administration approved 20 new IC companies to the Park in 2008, representing a total investment of NT$16.51 billion. These firms produce image IC, memory IC, MEMS, and communication IC. IC peripheral industries, including E-chuck/IC, ceramic components, probe, and validation test service, are continuously relocating to the HSP. Apparently, the semiconductor upper-stream and down-stream industrial cluster effect is most effective. Moreover, analog components are becoming important to consumer electronics, telecommunications, and power management industries. ClarIDy Smart Shelf ClarIDy Solution, Inc. Although 2008 was a challenging year, Taiwanese IC industry retains its dominant position, with above-average production and yield achieved by conservative policies focused on continuously optimizing performance, including improving cost structure, adjusting inventory level, upgrading product gross profit, and strategic collaboration. (II) Computers and Peripherals 40 The HSP contained 52 firms involved in the computers and peripherals industry in 2008, with a total sales revenue of NT$77.6 billion. The HSP attracted four businesses in 2008 to invest NT$1.01 billion in R&D on NAND flash memory, MEMS accelerometers, MEMS gyroscopes, LED chip on board (COB) Light Bar, electrets electrostatic materials, and computer multimedia. The emerging nano-technology material Electrets Electrostatic with electrets electrostatic and film Taiwan Electrets Electronics Co., Ltd. can be used in amplifier, earphone, static receiver, and touch detector. It has helped boost the consumer electronics business. MEMS has rapidly switched from IT/automobile application to consumer electronics with a significant growth. Computer and peripheral industry at the HSP focuses on the production of hardware, e.g. LCD, optical storage, digital camera, projector, and emerging digital frame. Besides continuously reforming the structure of the computers and peripherals industry while simultaneously migrating production of labor-intensive and uncompetitive products overseas, the key to increasing industry value is to move towards value-added core products by encouraging own-brand manufacturing, design, component distribution, supply chain management and after-sales services, as part of an overall approach to marketing and logistic management for enhancing firm competitiveness. Moreover, along with the promotion of digital music, network videoconference, luxury merchandise, and digital home, HSP members will try to create further business opportunities in the future. (III) Telecommunications The HSP contained 46 telecommunications companies in 2008, with a total sales revenue of NT$32.4 billion. Relevant products and technologies focus on mobile phone, GPS device, WLAN, xDSL, CPE, Ethernet LAN Switch, cable CPE, SOHO Router, Bluetooth, IP Phone, and PHS. One company that established operations in the HSP in 2008 is developing MIMO antenna system, low-frequency marine radar antenna system, automotive intelligent antenna system, and wireless sensing network module. Telecommunications players followed a new development direction in 2008 by shifting to network service, cell phone application s o f t w a r e p l a t f o r m , l o w - p r i c e c e l l p h o n e, commercialized computers, fiber network, WiMAX emerging market, and GPS merger. Due to the poor performance of wireless communications in 2008, GPS was the only one among the four product groups (cell phone, WLAN, GPS, and Bluetooth) Wireless Antenna and Accessories SmartAnt Telecom Co., Ltd. to generate growth, with the other groups suffering sales declines. (IV) Optoelectronics Optoelectronics industry at the HSP included 84 firms in 2008. Due to global trend towards digital broadcasting and increasing demand for TFT LCD TV panels and LED display, in addition Industrial Development and Introduction of Investment ANNUAL REPORT 2008 HSINCHU SCIENCE PARK year increase in number of new companies entering the Park. In terms of upgrading industrial technology level and competitiveness, the HSP has performed excellently. Total paid-in capital reached NT$1.14 trillion by the end of December 2008. As of the end of December 2008 the HSP contained 430 hi-tech companies with a total of 130,577 employees (see Figure 4, 5, and 6). Number of firms applying to enter the HSP continues to increase significantly, demonstrating that the Hsinchu Science Park continues to 41 As for the production of TFT-LCD, the largest manufacturer in Taiwan, AUO, possesses 6G and 7.5G mass production competence and plans to construct a 10G plant. Taiwan is the second largest producer of TFT-LCD, producing 192 million pieces in 2008 and generating sales of US$29.08 billion, representing 40% of global sales. Portable products are in high demand in the sense of energy saving, high resolution, and high response speed; therefore, manufacturers have invested in developing new display technology including Mirasol (Interferonetric-Modulator Display), Flexible Display, LCoS (Liquid Crystal on Silicon), and OLED (Organic Light Emitting Display). Taiwan is the largest producer of LED and also the largest producer of LED Chip. The HSP includes eight companies with the advantage of LED industry integration invested in LED-related product development in 2008, including LED flat light source for 3C products, LED backlight module, LED light fixture, and indoor/outdoor LED engine. This investment activity responded to global demand for energy saving and environmentally friendly products, which spurred continual development of LED industry. The solar cell industry in the HSP has developed rapidly in the face of soaring oil prices and policies encouraging e nv i r o n m e n t a l l y f r i e n d l y e n e rg y sources. Besides development of silicon wafer material in upper-stream and production of solar cell and module in mid-stream, some manufacturers have invested in development of energy 42 Color Solar Cell Lof Solar Corp. transformation system and equipment in downstream. Solar cell industry is a rising star at the HSP. (V) Precision Machinery A total of 23 firms were involved in precision machinery industry in 2008, with total sales of NT$ 11.8 billion. Three companies involved in this industry started operations in 2008, together investing NT$830 million in producing PECVD and PVD for solar cell industry, which provides turnkey services for Taiwanese solar cell equipment supply chain. These firms are the first at the park to produce oxidant ceramic components products with high density and hardness, temperature-resistance, chemical-stability, and excellent mechanical qualities. Also, such products can be applied on bearing systems and materials for semiconductor, illumination, and biomedical uses. Development of precision machinery industry at the HSP is closely linked to welldeveloped semiconductor and optoelectronics industries. Products of this industry have clearly transformed from equipment for back-end packaging and testing, inspection and automatic transportation systems required by semiconductor and optoelectronics industries to front-end manufacturing equipment. This trend has not only led domestic precision machinery firms to transform its production of equipment and devices required by the semiconductor and optoelectronics industries, with companies transforming their product lines including Mirle Automation Corporation, Passion Technology Co., Ltd., Gallant Precision Machining Co., Ltd., YoungTek Electronics Corp., etc., but has also attracted key international players, including globally renowned semiconductor equipment suppliers, such as the US-based Applied Materials, Lam Research etc., to the HSP during the early phase of the park operation. Recently, international firms like the global well-known vacuum device supplier, ULVAC, and the semiconductor device manufacturers, Tokyo Electron Limited, Rohm and Haas Electronic Materials, have set up operations at the HSP and begun producing key components, such as batch sputtering system, lift process deposition system, ion beam sputtering system, UV-IR cut coating system, etching equipment, and polishing materials; these companies have also provided HSP wafer and panel manufacturers with real-time services that have significantly helped those manufacturers reduce their industrial costs and increase their competitiveness. However, output of precision machinery industry has not increased as a proportion of total sales revenue. The well-developed structure of the IC, TFT, and emerging solar industries at the HSP; also, the excellent business performance of the said industries will undoubtedly attract further investment in automation equipment and specific materials related to semiconductor and solar energy industries, which elevates precision machinery industry cluster effect at the HSP. Industrial Development and Introduction of Investment ANNUAL REPORT 2008 HSINCHU SCIENCE PARK to the continuous development of n e w a p p l i c a t i o n s fo r L E D i n d o o r lighting, flat light source, and solar cell, optoelectronics industry sales revenue at the Park reached NT$176 billion in 2008. Solar cell was the fastest growing product, achieving 111% sales growth year on year. In terms of production High Current High Bright High Power LED Lamp yield, flat display products dominated MicroSolar Corp. with sales of NT$135.7 billion in 2008. Flat display products were followed by optoelectronic materials and component system products which achieved sales revenue of NT$23.3 billion in 2008. As noted above, solar cell is a rapidly emerging product in optoelectronics industry, and sales revenue reached NT$11.6 billion in 2008. Overall, HSP optoelectronics industry sales focused on flat panel display, optoelectronic materials and components, and solar cells in 2008, representing 97% of total production yield. 43 III. Business and Talent Recruitment In 2008, four new companies established operations at the HSP, namely AQUA LOHAS Water-Tech Service Co., Ltd., Biodenta Corp., EPS Bio Technology Corp., and Tai-Yu Pharma Corp, which exhibited a significant increase comparing to 2007, while only two new companies moved in the park. Dental Implant AQUA LOHAS focuses on development of SPA machine, water System purifier, and aqueous biotechnology products, e.g. machinery Biodenta Corp. components, desalination technology, and formula technology. Particularly, Supercritical Fluid Ex trac tion (SFE) and mineral drop concentration technology can be integrated with Taiwan's abundant water resources to help increase competitiveness of domestic water resource industry. Biodenta Corp. focuses on R&D of artificial Accessories crowning systems. Artificial crowning has Biodenta Corp. long been studied overseas but has only recently attracted research attention in Taiwan. Artificial crowning is a high technology and high price product, and can be applied on the development of artificial osteo-joint products for technology upgrading. EPS Bio Technology Corp. manufactures glucose meters with high measurement accuracy and easy operation, which have high market remarks. Liver cirrhosis (LC) meter is an innovative device that detects liver function with accuracy, which is a unique product in Taiwan. Tai-Yu Pharma Corp. develops tube for nonPVC multi-layer medical film and multi-layer IV bag, which improve clinical safety, reduce film material costs, and upgrade film production technology. (I) Advertising and Promotion Total biotechnology industry sales revenue contributed by 25 enterprises at the HSP reached NT$ 3.6 billion in 2008. With diversified development model, integration of medical and electronics industries helps foster local biotech industry development advantages, particularly in active pharmaceutical ingredient, biotechnology service, bio-agriculture, and biotech industries. Impax Laboratories Taiwan Inc. has constructed manufacturing facilities at the Jhunan Science Park with mass production scheduled for March 2009 following FDA certification. Savior Lifetec Corporation has striven to construct manufacturing facilities capable of contributing to park biotechnology production. A total of ten businesses are stationed at the Jhunan Science Park, two of which have recently established themselves at the park, including AQUA LOHAS Water-Tech Service Co., Ltd. and Tai-Yu Pharma Corp., forming a cluster effect based on incorporating R&D competence of the Animal Technology Institute of Taiwan and the National Health Research Institute. Domestic biotechnology industry has not yet cornered an eminent position in the world but it has managed to achieve stable growth with government support. Development of domestic biotechnology industry is oriented towards profitability, overcoming bottlenecks of technologies and grasping market niches via competitive advantages. To attract investment and promote image of the HSP, every year the Science Park Administration publishes pamphlets in Chinese, English, Japanese, and Spanish for the reference of visitors. Contents of pamphlets include geographic location of the HSP, surrounding academic research organizations, six major industries, investment incentives, procedures for investment applications and factory establishment, etc. (II) Advertising Campaigns To elevate the investment environment of the HSP, the Science Park Administration regularly promotes the HSP in domestic and foreign media, e.g. LA Times, Fortune, Forbes, Time, Newsweek, Red Herring, BusinessWeek, Financial Times, International Herald Tribune, Commonwealth Magazines, etc., to attract businesses investment, professional talent, and business opportunities. Additionally, the Science Park Administration has participated in joint promotion and advertising programs hosted by the Government Information Office of the Executive Yuan for advertising campaigns in major eastern U.S. media, such as the Washington Post and the New York Times, to raise international visibility of the HSP. The Science Park Administration also advertised on 30 Chinese academic organizations and associations to encourage overseas scholars to return to Taiwan to take up entrepreneurial opportunities. As for local media, advertisements of the park are placed in the Taiwan News, Chinese Institute of Engineers, as well as through the Central News Agency, Bio Taiwan Conferences and Exhibitions, and media at Taoyuan International Airport. Industrial Development and Introduction of Investment ANNUAL REPORT 2008 HSINCHU SCIENCE PARK 44 (VI) Biotechnology 45 The Science Park Administration accommodated approximately 13,000 visitors ( Table 4) in 2008, primarily domestic and foreign investors, association members, student groups, important members of foreign governments arranged by the Ministry of Foreign Affairs, and foreign media arranged by the Government Information Office. Additionally, along with multimedia briefing, domestic and international visitors gain a clear picture of the current development status of the HSP. Visitors from academic sectors are encouraged to work with hi-tech industries at the park in terms of joint R&D programs, in an eye to enhance academia-industry collaboration. Table 4 Visitors to the HSP in 2008 Unit: People Central & South America Asia Europe Africa North America 839 466 175 46 52 81 19 1,866 21 92 238 751 533 46 0 64 108 0 989 10 65 Services 293 30 30 0 0 0 0 0 323 8 1 Mass media 0 84 13 6 0 17 48 0 84 0 18 5,167 1,575 951 213 0 365 45 1 6,742 94 86 Background Domestic Foreign Political groups 1,027 Business Academia Oceania Total Domestic Foreign (groups) (groups) Research 338 338 181 23 0 106 16 12 676 8 27 Civil groups 1,014 325 273 0 0 52 0 0 1,339 29 16 Others 94 244 208 0 0 31 5 0 338 2 9 Total 8,171 4,186 2,655 463 46 687 303 32 12,357 172 314 Percentage % 66.12 33.88 21.49 3.75 0.37 5.56 2.45 0.26 100.00 35.39 64.61 (IV) Business and Talent Recruitment 46 Industrial Development and Introduction of Investment ANNUAL REPORT 2008 HSINCHU SCIENCE PARK (III) Visitors Accommodation 1. Overseas Talent Recruitment Since 2003, the Science Park Administration has assisted HSP companies in participating in the "Taiwan Overseas High-Tech Talent Recruiting Mission" co-hosted by the National Science Council and the Ministry of Economic Affairs. The Mission is held every year and the itinerary includes USA, Canada, Japan and India. Around 40 companies join the Mission annually. As of 2007 approximately 3,464 talents had cumulatively been recruited under the program and brought to Taiwan. From August 16 to 26 2008, Dr. Chang Jin-Fu, Minister without Portfolio of the Executive Yuan, served as head of the Mission and invited relevant departments and sections as well as 37 Park companies to Silicon Valley, Raleigh, N. Carolina, Boston, Seattle, and Toronto, to host talent recruitment seminars. A total of 1,580 high-tech talent from overseas expressed their willingness to work in Taiwan. 2. Business Recruitment Activities The Science Park Administration attended "BioTaiwan 2008" on July 24-27, 2008 and arranged the "HSP Theme Park," where eight firms were invited to participate in the program. Regarding overseas business recruitment, from June 6 to 22, 2008 a delegation led by the Director General of the Science Park Administration, Mr. Randy Yen, visited San Diego in the USA to participate in "Bio2008 North America" and associated recruitment activities. The investment department of the HSP Administration sent delegates to attend Interop in New York USA on September 16 to 19, 2008 and to visit potential investors. During October 19 to 25, the Deputy Director General, Mr. Randy Yen, and employees of the Park Administration went to Beijing to attend "2008 IASP-ASPA" and to hold a seminar with Taiwanese businessmen in Shanghai, in the hope of attracting them to invest in Taiwan. From December 7 to 14, 2008, the Deputy Director General of the Science Park Administration, Dr. L. S. Tung, led Administration employees to visit optoelectronics and software companies in the U.S., e.g. Boeing, Microsoft, and DRVision Technologies LLC, and to hold business recruitment seminars as well as to invite these companies to invest in the HSP. 47 Part of mission of the HSP is to improve international cooperation and exchange, to understand the latest development trends exhibited by other global science parks, and to assist domestic companies in expanding their overseas markets. The HSP has striven to attend activities of international organizations, besides becoming a member of IASP, AURP, and ASPA, the HSP has also attended board meetings too. Over the years, the HSP has established sister relationships with 23 other science parks in 12 countries ( Table 5) to share management experience, exchange technologies, and conduct business. Table 5 No. Sister Parks Country Park Date and Location of Contracting 1 USA Tri-cities Science & Technology Park June 6, 1997 (USA ) Richland, Washington 2 USA City of San Jose Oct. 2, 1997 (Hsinchu) Science Park Administration 3 USA California State University Oct. 11, 2000 (Hsinchu) Science Park Administration 4 USA The Economic Development Alliance for Business Mar. 16, 2001(Hsinchu) Science Park Administration The HSP became an official organizer of ASPA annual conference in 2009. 5 USA Sandia Science & Technology Park Aug. 26, 2004 (USA ) Albuquerque,New Mexico A seminar was held jointly by the Yokosuka Research Park, the Kuanhsi Park, the Kitakyushu Academic Research Urban & Association, and the HSP in May 2008 to discuss future cooperation. The HSP also worked with ASPA and ITRI in August 2008 to host the "Taiwanese and Korean Seminar," bringing together over 20 Taiwanese and Korean enterprises for face to face business discussions. The HSP was invited to attend and to give a speech at the "Kitakyushu Academic Research Urban Seminar" in October 2008, where a tour was arranged for representatives of sister parks, including the Kuanhsi Park in Japan, the Hoa Loc High-tech Park in Vietnam, and the Daedeok Park, the Kyonggi Park, the Daegu Park, the Changwon Park, the Chingbei park, the Wuchong Park, and the Green Valley Park in Korea, to exchange experiences related to park development and management, and to seek further future cooperation possibilities. 6 USA The Arrowhead Science Park Aug. 26, 2004 (USA ) Albuquerque,New Mexico 7 USA 8 USA 9 Canada Science Council of British Columbia The Science & Technology Park at the New Mexico University City of Baton Rouge Aug. 26, 2004 (USA ) Albuquerque,New Mexico Sep., 2007 (Hsinchu) Science Park Administration Dec. 16, 1993 (Taipei) National Science Council of the Executive Yuan 10 Canada Quebec Metro High Tech Park 11 UK Manchester Science Park June 28, 1998 (UK ) Manchester 12 France Sofia Antipolis Science Park Oct. 23, 2002 (France ) Sophia 13 Sweden Mjärdevi Science Park 14 Spain Parque Technologico de Andalucia 15 Turkey Hacettepe Technocity 16 Brazil The Federal University of Rio Grande do Norte Industrial Development and Introduction of Investment ANNUAL REPORT 2008 HSINCHU SCIENCE PARK IV. International Cooperation Sep. 3, 2002 (Canada ) Quebec July 6, 1998 The contract was signed remotely Dec. 13, 2000 (Hsinchu) Science Park Administration April 20, 2007 (Hsinchu) Allied Association for Science Parks Industries Nov. 22, 1995 (Hsinchu) Science Park Administration Parque Científico e Tecnológico da 17 Brazil Pontifícia Universidade Católica do Rio 2006 The contract was signed remotely Grande do Sul 18 48 19 HSINCHU SCIENCE PARK South Ansan TechnoPark Korea Name changed to GyeonggiTechnopark in May 2003 South Korea Asian Science Park Association June 30, 2000 (Hsinchu) Science Park Administration April 20, 2007 (Hsinchu) Allied Association for Science Parks Industries Dec. 15, 2004 (Hsinchu) Allied Association for 20 Japan Kitakyushu Science and Research Park 21 Japan Yokosuka Research Park 22 Russia Moscow State University Science Park Sep. 9, 2004 (Russia) Moscow 23 Thailand Thailand Science Park June 7, 2006 (Finland) Helsinki, Science Parks Industries Dec. 13, 2007 (Hsinchu) Allied Association for Science Parks Industries 49 V. Supports & Services Figure 7 1986-2008 Innovative Product Award Winners Biotechnology (12) 5% Precision Machinery (18) 7% I. Innovative Research and Development (I) Innovative Technology Research and Development Subsidiary Program The Science Park Administration established the "Guidelines Governing R&D Grants for Innovative Products at the Science Park" to promote R&D and innovation in 1986. Up until the end of 2008, 714 applications were approved, representing NT$1.528 billion, which was supplemented by NT$4.428 billion from Park companies. These subsidies account for 25.7% (Table 6) of the total government budget, i.e. NT$5.956 billion. Additionally, the Administration has revised the Science Park Administration Subsidy Plan into the "Science Park Innovation Technology R&D and Industry-academia Collaboration Award and Subsidy Plan" to encourage HSP companies to engage in R&D of innovative technologies, so as to promote exchanges among academic research institutes and to assist HSP companies in innovating their core technologies and incubating domestic R&D talent. 12 cases were approved in 2008, involving subsidies of NT$42 million, among which academic subsidies totaled NT$8.73 million. To encourage HSP firms to develop innovative products and expand international markets, the Science Park Administration established relevant screening criteria for innovative product awards in 1985 and amended related regulations since 2001. Far from preliminary documentation examination, onsite reviews were added. The Table 6 1986-2008 Innovative Technology Research and Development Subsidy Program Unit: NT$ 100 million Categories 50 Cases Subsidy Amount Project Budget Ratio (%) IC 231 5.52 23.67 23.3 Computers and Peripherals 164 2.82 10.94 25.8 Telecommunications 126 2.52 10.07 25.0 Optoelectronics 90 2.23 8.30 26.9 Precision Machinery 48 1.03 3.24 31.9 Biotechnology 55 1.16 3.34 34.6 Total 714 15.28 59.56 25.7 Computers and Peripherals (71) 28% Telecommunications (53) 21% screening criteria included innovation, technology, market competitiveness, R&D investment, extended product efficiency, number of internationally recognized awards and patents obtained, and number of thesis published for the products. A prize of NT$ 500,000 was awarded to winners. As of 2008 a total of 251 innovative products (Fig. 7) had been awarded, with subsidies for eleven innovative products totaling NT$5.5 million in 2008 (Table 7). Table 7 (II) Innovative Products Award IC (73) 29% Optoelectronics (24) 10% Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Unit: case / percentage List of 2008 Innovative Product Award Winners Companies Mediatek Inc. Products MT5382P-Full HD ATSC iDTV SoC Realtek Semiconductor Corp. Advanced All-In-One LCD Monitor Controller (RTD2485D) Elan Microelectronics Corp. Integrated Capacitive Touchpad Module for Portable Device Formosoft Wistron NeWeb Corp. Microelectronics Technology Inc. TECOM Inc. APM Communication, Inc. MOTP, Mobile One Time Password WiFi Media Frame DODECA LNBF 2G/3G (UMA) Femtocell Home Gateway apm6633 WLAN/Bluetooth Combo SiP Module Integrated Digital Technologies, Inc. Revolutionary Interactive Screen Gallant Precision Machining Co., Ltd. In Line Wet Bench for Solar Cell Savior Lifetec Corporation Merotic (Meropenem for Injection) 51 In Line Wet Bench for Solar Cell Gallant Precision Machining Co., Ltd. DODECA LNBF Microelectronics Technology Inc. MOTP, Mobile One Time Password Formosoft WiFi Media Frame Wistron NeWeb Corp. Revolutionary Interactive Screen Integrated Digital Technologies, Inc. (III) Research and Development Achievement Award To encourage businesses at the HSP to invest in research and development, to acquire patents, to protect intellectual properties, to raise technology standards, and to elevate industrial level, the Science Park Administration established the "Research and Development Achievement Award" in 2003, which recognizes firms based on screening criteria that achieve remarkably in technology research and development, sales revenue, number of domestic and international patents, and income created by research and development. 52 Up until 2008 a total of 32 companies had been awarded the Research and Development Achievement Award. Among the winners, AU Optronics Corp., is a unique one, which has received positive affirmation for their R&D achievements for six consecutive years. Four companies that received the award in 2008 were Polytronics Technology Corp., Microjet Technology Co., Ltd., Avision Inc., and AUO, which received subsidies and awards totaling NT$2 million. apm6633 WLAN/Bluetooth Combo SiP Module APM Communication, Inc. MT5382P-Full HD ATSC iDTV SoC Mediatek Inc. Integrated Capacitive Touchpad Module for Portable Device Elan Microelectronics Corp. 2G/3G(UMA)Femtocell Home Gateway TECOM Inc. Advanced All-In-One LCD Monitor Controller(RTD2485D) Realtek Semiconductor Corp. Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Merotic(Meropenem for Injection) Savior Lifetec Corporation 2007. The first two stages of the program were completed in February 2007 and in October 2008, respectively, where key points of project implementation of the second stage of the program focused primarily on strengthening industry, business recruitment, and operations. The program is implemented based on a system of professional authorization, where National Chiao Tung University is in charge of implementing the EDA/IT service platform for designing SoC products, IP Mall trading platforms, design services, and testing/measuring services for SoC products. The Science Park Administration acts as a key player in performing business recruitment, environmental functionality establishment, and management, based on the following plans: 1. Plan for constructing a suitable R&D environment in the Philips Dapeng Plant at the HSP, establishment of a company entitled "SIPP Inc." serving as the SoC Design and Service Model Zone and fostering the SoC Design and Incubation Center. (IV) Prospective SoC Product Design Service and Technology Research Program 2. Establishing a global design platform, fostering SoC services industries, and cooperating with globally renowned EDA software companies, such as Synopsys, Cadence, Mentor, Avanti, and Agilent, in an eye to build up an indigenous Taiwanese SoC design platform. Target of the development program lies in heterogeneous integration of CMOS and MEMS competence. To accelerate development of the SoC Design Service Center located at the HSP," to solidify prospective SoC product design services and technology R&D platforms, and to develop a brand new industry operation model, the Science Park Administration applied to the Science Development Foundation of the National Science Council to implement the "SoC Innovation Product Partnership (SIPP)" program from 2005 to 3. Solidifying commercial operation model for intellectual properties, implementing SIPs for different applications, which allows global customers to use different types of SIPs, integrating silicon intellectual properties from academia, and forming a trade network for global users, in an eye to simplify design of SoC ICs and to shorten IC design duration. 53 II. Talent Cultivation (I) Talent Cultivation at the HSP The Science Park constantly carries out talent cultivation programs and assists HSP businesses to elevate technology & management competence of service. In 2008, academic and training institutes, e.g. National Chiao Tung University and National Tsing Hwa University, were commissioned to implement the training programs regarding technology, management, and e-learning courses, involving a participation of 5,794 individuals (Table 8). Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK 4. Offering high quality of administrative services and recruiting companies involved in SoC design and relevant industries to start operations at the HSP, so as to form local SoC industry cluster effect and to attract world-class R&D centers to station themselves at the HSP. The Science Park Administration also commissioned the Tze Chiang Foundation of Science and Technology to offer integrated courses dealing with professional skills, e.g. "Accounting Practices," "Human Resources," "Business Law," "International Business Administration," "Quality Management," etc. Each session comprises free courses Table 8 2008 Science Part Talent Cultivation Programs Unit: People / NT$ thousand Courses SoC Design Semiconductor Manufacturing Process Telecommunications and Computer Software Optoelectronics 54 Medical Science and Biotechnology International Biotechnology Certification Regulations Chemical Safety and Health and Environment Engineering Management High-tech Learning Courses Project Management Cultivation of Managing Staff Short-Term Training Courses Total Host Organizations No. of Trainees Budget National Chiao Tung University 445 2,500 Tze Chiang Foundation of Science and Technology 514 3,000 National Chiao Tung University 942 5,000 Tze Chiang Foundation of Science and Technology 583 4,000 National Tsing Hua University 256 620 1,090 2,900 Yuanpei University 542 2,200 Tze Chiang Foundation of Science and Technology 665 3,000 APMC 250 2,500 Mon-Yu Management Consulting 507 1,500 4,736 1,500 10,530 28,720 ITRI Tze Chiang Foundation of Science and Technology for HSP employees to help them improve their management competence and law knowledge. In 2008, a total of 65 sessions were offered, involving a participation of 4,736 trainees (Table 8). The "Science Park Technology Talent Cultivation Network" (http://e-learning.sipa. gov.tw/edu/) was established by the Science Park Administration in 2004 and offered relevant enquiry services. This network provides HSP tenants and employees an option for technology elevation & professional knowledge enhancement. (II) Subsidizing Universities and Colleges for Cultivating of Talents Required by Science Park Enterprises To resolve talent shortage problems and to make learning meet industry demands, the National Science Council of the Executive Yuan established the HSP talent cultivation subsidy program in 2005. Through cooperation between industries and academia, academia are expected to offer practical programs to meet industrial demands, in an eye to reduce the gap between what has learned at schools and practices in industries. In 2008, the Science Park Talent Cultivation Subsidy Program offered subsidies totaling NT$43 million, where 36 universities involved in arranging 51 training courses available for trainees from the Hsinchu Science Park, Central Taiwan Science Park, and Southern Taiwan Science Park. The Hsinchu Science Park alone subsidized a total of NT$16 million to 12 schools in hosting 18 courses in northern Taiwan (Table 9). 55 III. Information Services To induct the HSP and academic sectors together for conducting the cultivation of talent and cooperation among R&D sectors, the Science Park Administration established the Talent Cultivation and Industry-academia Cooperation Platform in November 2007 to assist Park tenants in cultivating talent and forming a platform for industry-academia cooperation. Technology). The HSP Administration was accredited the ISO/IEC 20000 of Information ISO/IEC 20000 defines the lowest acceptable service quality of IT (Information Technology Service Management in December 2007 and conducted a review in December 2008. Few institutes in Taiwan have been qualified for ISO/IEC 20000 at present. A sound information technology environment Table 9 Subsidies Offered by the Science Park Administration to Universities for Talent Cultivation in 2008 Universities Titles of Course ensures an efficient and successful policy Unit: NT$ execution of information Budget ser vice outsourcing, the HSP Administration Chung Hua University Embedded System Design and Application Chung Hua University Intellectual Robot-related Industrial Technology Design and Application Chung Hua University Oracle Database Management and Application Systems 1,000,000 e.g. information system maintenance, operation outsourcing, information process VLSI Design and Testing 1,052,490 maintenance, data validation outsourcing, etc. Semiconductor Process and Integration 1,000,000 Chung Yuan Christian University Chung Yuan Christian University applies the "ISO/IEC 180,000 20000 Information Technology Management System" and the "ISO/IEC 27001 Information Safety Management System" on a wide variety of information services, To e n h a n c e t h e s e r v i c e q u a l i t y o f o u t s o u r c e d b u s i n e s s e s , t h e H S P Administration has required outsourcing suppliers to set up service plans and Vanung University VLSI Design and Application 850,000 conduct detailed performance evaluations to improve relevant information service Vanung University LCD Packaging Process and Equipment Technology Development 200,000 quality. The outsourced companies, Axtronics and Acer, have been required to Vanung University Computer and Peripherals Application 768,000 Minghsin University of Science andTechnology Minghsin University of Science andTechnology De Lin Institute of Technology 56 1,199,500 IC Design and Testing Industrial Equipment Technology Upgrade and Optoelectronics Testing Practice 1,100,000 847,800 Application of Micro-controller on Civil Engineering Courses 954,370 Ching Yun University Network Technology Applications 950,000 Hwa Hsia Institute of Technology Embedded Systems and Measuring Systems 736,560 Shih Hsin University Information Software System Modules China Institute of Technology Chang Gung University Yuan Ze University Ming Chuan University Total Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK (III) Establishment of the HSP Talent Cultivation and Industry-Academia Cooperation Platform 637,500 qualify the service quality of software & hardware maintenance and operation outsourcing, respectively, demonstrating the expectation of the Science Park Administration in elevating the information technology services at the park that comply with ISO/IEC 20000. The Science Park Administration has also established a standard incident management process to help effectively process information technology service incidents in terms of real time information services requested by users. To reinforce information security and information service environment at the HSP, the Science Park Administration keeps digitizing administration services over the years, where the "HSP Custom Clearance e-system" was awarded SGS ISO/IEC Flat Display Process and Optoelectronics Application Practices 1,000,000 27001:2005 Information Safety Certification on August 15, 2008. The Information Optoelectronic Applications, Semiconductor Materials, and Components Processing Technologies 1,200,000 Office and the "HSP businesses management information system" of the Science RF and Microwave Applications 1,125,000 Network Safety Practices 1,198,780 16,000,000 Park Administration were certified for ISO 27001 Information Safety Certification on August 22, 2008. 57 to help relevant personnel improve (I) Medical Services at work and organizes annual HSP their awareness of health and safety The Science Park Clinic was contracted to private sectors for operation in 1999, Labor Safety Month activities, which with the first operation contract given to Ton Yen General Hospital, which will provide include labor safety posters, child medical services for Park tenants until June 30, 2011. drama contests, jogging, fitness Medical services at the HSP include: 1. Outpatient Medical Treatment and Services: providing easily accessible outpatient medical treatment and services, covering 15 departments and 22 sessions, e.g. the family medicine, general internal medicine, pulmonology, occupational medicine, gastroenterology, rheumatism & immunology, gynecology, sleep disorder therapy, cosmetic and plastic surgery, physiotherapy, optometry, ophthalmology, otolaryngology, dermatology, neurology and smoking quitting. A total of 5,853 outpatient services patients were served in 2008 and a physiotherapy clinic was established at the Science Park Clinic to provide various types of physiotherapy sessions, which served 1,834 patients. 2. Physical Health Examinations for employees: health checks for new employees, annual employee health checks, adult health checks, and life insurance health checks, servicing 20,000 patients in 2008. 3. Emergency Medical Treatment: a 24-hour emergency health care hot line, 03-5798908 operates with support of 3 EMT staff responsible for full time ambulance and emergency care. 415 instances of ambulance dispatch and 25 occasions of medical services were offered in 2008, where ambulances were also demands dispatched in coordination with large-scale drills in various factories, of emergency care, and supports for occasional medical care services within the HSP. 4. Health Promotion Activities: the Science Park Administration hosted 11 health examinations, medical care, etc, to promote the idea of "Labor Safety for Everyone". Fur thermore, to implement labor safet y and health, the Science Park Administration, besides enforcing labor safety inspection, also regularly assists outsourcing companies and academic institutions in hosting "Labor Safety and Health Counseling at the HSP." An event that included 32 sessions assisting 16 companies in improving their health and safety capabilities was held in 2008. As a labor safety partner of the Association of Science Park Industries, the Science Park Administration eagerly advocates resource integration, safety and health standards upgrade, and risk & disaster reduction. Content of collaboration between Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK IV. Labor Welfare the Science Park Administration and the Association of Science Park Industries includes: 1. Encouraging business units at the park to implement OHSAS18001 Occupational Safety & Health Systems. 2. Hosting labor safety and health education programs, promoting safety and health concepts, and improving safety and health awareness. 3. Enforcing gas/chemicals suppliers audit, ensuring safety of suppliers and merchandises, minimizing supply chain risks, and upgrading industrial safety awareness of new Park tenants by referring to the experiences of audited corporations. check events, comprising 100 sessions and involving nearly 50 participating 4. Establishing a database of park specialists, offering safety and health consultations at companies, 116 health forums involving 116 companies and 3,400 participants, four the park, and improving exchange of safety and health information and technology. occupational protection and work safety education and training programs, and four lectures in 2008. The park also provided inoculations for influenza, Hepatitis A 58 (III) Labor Welfare and B, Tetanus, and Uterine Cancer Vaccine to 3,400 people and distributed health A well-trained labor force, humanistic labor management, and well-structured and medical information via posters, e-mail, outpatient charts, and messages via labor welfare are essential for improving labor-management relation and labor Internet. force productivity. To supervise Park tenants in consolidating the Labor Standards (II) Labor Safety Inspection Law, the Science Park Administration assisted 422 business units in 2008 in complying with the new labor law requiring the provision of labor pension and To reduce occupational hazards, the Science Park Administration has actively labor retirement pension and assisted 380 companies in establishing labor welfare encouraged business units to establish self-management systems for ensuring health funds. Moreover, to help HSP firms understand the labor laws and regulations, and safety and to implement TOSHMS and OHSAS18000 systems. Furthermore, the six seminars were organized in 2008, including labor mobilization law, labor Science Park Administration often arranges labor safety seminars and demonstration contract seminar, seminar on preventing occupational discrimination, seminars on implementing labor wages and annuities, labor welfare fund seminar, and seminars 59 on gender equality at work. The Science Park Administration also completed electronic systems, allows the Science Park Administration to execute policies efficiently 280 negotiation cases regarding legal and regulatory enquiries and employment and effectively. To speed up the application procedure of employing foreign talent, the Science To improve leisure options and interactions with HSP employees, the Science Park Administration was authorized by the Council of Labor Affairs, Executive Yuan, to Park Administration planned various sports games, artistic performances, and sanction work permits via network for foreign professionals since January 15, 2004. entertainment activities in 2008. Seven competitive events were held during Companies anticipating to employ foreign professionals can save a lot of time and the year, e.g. volleyball, tennis, table tennis, softball, badminton, basketball, and a effort. musical contest, involving a total of 3,700 participants. As for art events, a total of six events were held involving 3,800 participants, e.g. "Labor Day Event," "Musicals," "Doggy LUCKY Adventure," "My FUN Life," "HSP Chorus and Lu-qui Children Chorus Performance," and "Johann Strauss II Concert." Regarding entertainment activities, funfairs were held to celebrate the anniversary of the HSP, which involved 1,500 employees, their family members, and residents of neighboring communities. Achievements of the Science Park Administration in business services in 2008 include: 1. Sanctioning cases of registration, tax deduction, and qualification certifications for HSP tenants. 2. Planning and establishing a system for gathering statistics on final reports and completing the Annual Final Reports Declaration System. 3. In response to the requirement of the MOEA in carrying out business correction and operation survey, the Science Park Administration has prompted business units at the Park to declare via the Internet, so as to reduce operation time. The Science Park Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK disputes. Administration has completed correction and operation survey for 396 businesses and collected relevant information of revenue, expenses, inventory, investment in fixed assets, technology transfer cases, R&D expenses, etc. 4. Issuance of "IPO Q&As" and "Business Management Q&As" for references of Park tenants. 5. Hosting six seminars on company law, finance and accounting communiqués, business tax law, and marketable security subscription and issuance. V. Business Services and Operations Management Business and administrative affairs at the HSP are numerous, diversified, and comprehensive, with contents including certificate issuance for companies, profitmaking organizations, factories, and export/import companies. To shorten operation procedures and to enhance business service quality, the Science Park Administration offers one-stop services and integrated certificate issuance procedures. To provide 60 Park tenants better services, the Science Park Administration has continually digitized a wide variety of application systems, which have not only relieved the workload of the Science Park Administration but also increased administration efficiency. Additionally, the Science Park Administration also assisted the Department of Statistics, Ministry of Economic Affairs, in handling correction operation of factories and business survey, and reviewing the final reports of HSP companies, in an eye to grasp the operation status of Park tenants. Furthermore, the Science Park Administration has implemented a digitized declaration and checking system for balance sheets since 2001 and has established a correction system for business survey in 2002. Integration of the aforementioned 6. Promoting use of Certificate IC Card for 65 HSP companies. 7. Completing the Audit and Management System for Mortgage of Estate, which provides companies with an easy application access. 8. Establishing an online system for work permit of foreign professionals, with approximately 600 applications sanctioned in 2008. 61 (I) Emergency Response ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Achievements in 2008: 1. In coordination with the Environmental Protection Bureau of Hsinchu City, toxic materials and disaster response rehearsals were held at PSC. 2. Supervising 20 companies, e.g. Mosel Vitelic Inc., in conducting employee fire fighting training. 3. Performing fire safety equipment inspections in 30 companies, e.g. ALPHA Networks. 4. Implementing disaster response measures for typhoons KALMAEGI, PHOENIX, SINLAKU, and JANGMI, and overseeing recoveries. 5. Hosting a fire prevention seminar to enhance disaster response capabilities and awareness. 6. Amending regulations governing the Science Park Fire Fighting Teams. The "Draft Regulations for Establishing a Science Park Fire Fighting Team, National Fire Agency, Ministry of the Interior" (including general descriptions and organizational chart)," and the "Draft Enforcement Rules for Science Park Fire Fighting Team, National Fire Agency, Ministry of the Interior," were amended and submitted to the Ministry of the Interior for final approval in 2005. An appeal was made to the National Fire Agency to allow the Science Park Fire Fighting Team to handle fire fighting affairs until the organizational reformation was completed. (II) Security Enhancement A successful and competitive science park requires a secure environment. To enhance security at the HSP, the Science Park Administration has made considerable efforts to strengthen entire security and to upgrade both emergency response and abilities to recover from disasters. Conventional passive officebased security force was replaced by mobile patrols, in an eye to reinforce 62 security at the HSP. Additionally, a 24-hour high-tech electronic monitoring system was established to enhance security. In terms of upgrading emergency response and hazard recovering capabilities, the Administration issued the "HSP Disaster Prevention and Recovery Manual" and organized the "HSP Relieving and Recovering Emergency Response Team." Besides, the Science Park Administration regularly organized civilian defense practices and drills to develop self-defense competence. Main achievements regarding security enhancement measures done at the HSP include: 1. Processing 794 traffic accidents, 5,764 traffic rule violations, 121 criminal cases happened at the HSP, 117 criminal cases related to the HSP, tracking down 39 missing persons and 90 wanted criminals, 17 stolen cars and motorcycles found, three public service cases (involving deployment of 75 police), ensuring order and security at 85 shareholder meetings and important events held by HSP companies, assisting HSP companies by escorting precision equipment during transportation on 15 occasions, allocating five special guards (deploying 295 police), security services for visitors (involving the deployment of 53 polices), conducting 120 crime prevention propaganda campaigns and four martial arts propaganda campaigns and demonstrations, hosting public security Q&A contests at six companies, ensuring public security at 20 companies, maintaining security at 60 shareholder's meetings, guarding for nine delegations of visitors to the Park from the People's Republic of China, conducting 185 social security investigations, guarding 56 individual visitors from the People's Republic of China and ensuring public security at two Hsinchu County/City Summit Meetings. Supports & Services VI. Hazard Response & Security Enhancement 2. Supervising 84 outsourcing items and hosting quarterly security and service review meetings, totaling four sessions, to reinforce security and safeguard quality at the HSP. 3. To enhance emergency response competence, the Administration hosted 50 public defense training sessions in 2008. Moreover, drills were conducted on August 28, 2008, to cope with Wan-An Drill No. 31 in northern Taiwan, which covered practice of evacuation of people and vehicles, traffic control, air-raid drills, etc. 4. Updating the "HSP Emergency Response Team Manual" and the "HSP Disaster Prevention and Recovery Manual" and establishing ten HSP emergency response teams. 5. Constructing an all-weather 24-hour high-tech electronic security monitoring system that included 105 units of monitoring, recording, and vehicle recognition system at the HSP, 74 units at the Jhunan Science Park and 23 units of emergency telephone systems. Four monitoring systems at the Longtan Science Park are expected to be implemented in June 2009. The aforementioned systems are expected to help police in case investigation and to halt criminal incidences at the HSP. 63 To take care of the education of employees' children, the government established National Experimental High School (NEHS) at the Hsinchu Science Park in August 1983. The school includes five divisions, namely senior high school, junior high school, elementary school, kindergarten, and bilingual school. Currently NEHS hosts 3,000 students in a total of 106 classes, including 12 classes at senior high school, 16 classes at junior high school, 48 lasses at elementary school, 6 classes at kindergarten, and 24 classes at bilingual school. NEHS is located at the Hsinchu Science Park and close to academic research institutions, e.g. National Tsing Hua University (NTHU), National Chiao Tung University (NCTU), and the Industrial Technology Research Institute (ITRI). Abundant science, technology, and academic resources act as catalysts for students' learning, where students are not only mentally flexible but also extremely creative, achieving outstanding results in domestic and international academic tests and talent competitions, scoring remarkable performances in physics, chemistry, and maths competitions globally, and performing well in National Merit Scholarship in the USA and numerous language and music competitions (Table 10). Both senior high school and junior high school sections achieved excellent performances in 2008, with approximately 90% of students at high school admitted to national universities. Over 50% of students from junior high school section were admitted to their first choice of domestic senior high schools in 2008. Graduates from bilingual school also performed well, with over 90% admitted to well-known universities in the USA, 64 e.g. Harvard University, the Massachusetts Institute of Technology (MIT), Stanford, Yale, Columbia, University of Duke, etc. Apart from focusing on academic performance and moral development, students at NEHS are also asked to cultivate team spirits. NEHS provides around 50 music, academic, and recreational e x t ra - c u r r i c u l a r co u r s e s for students at junior high school and senior high school. NEHS also collated oil paintings done by all grade 12 graduating students into an album exhibiting at the Hsinchu Social Education Center starting since 2005. Additionally, the outstanding badminton team at bilingual school students and the newly established choir at elementary school are also with unique characteristics. NEHS also actively collaborates and interacts with neighboring schools to improve overall education quality at adjacent communities. NEHS served as a model school for the concept of "Constructing Adaptive Learning Communities," a key policy of Hsinchu City for Senior High/Vocational School Localization. Since then, NEHS has constructively integrated resources from adjacent schools and has created an interactive model for sharing community resources. Furthermore, since 2007, NEHS also served as a convening school for the plan of "Hsinchu City Math Creative Teaching" and served as a site for further research and study, formulating contest questions, conducting R&D on teaching materials, hosting student learning camps in Hsinchu City, as well as improving the effectiveness of math learning. In terms of widening student's horizons, the Bilingual School arranged the Fourth High School United Nations Drill in Hsinchu area from October 25 to 26, 2008 with participation of 250 students from eight schools. A number of domestic renowned high schools, e.g. National Tainan First Senior High School, National Tainan Girls' Senior High School, and National Experimental High School at Tainan Science Park also participated in the event. Students from the Bilingual School have formed a team to attend a Virtual United Nation Meeting in Asia, which widened their horizons and friendship. Supports & Services ANNUAL REPORT 2008 HSINCHU SCIENCE PARK VII. Bilingual School (National Experimental High School) 65 2008 Experimental High School Honor Roll International Physics Olympiad/1 Gold Medal ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Asian Physics Olympiad/1 Gold Medal Taiwan 2008 International Science Project Mathematics /1st and 3rd Place AMC 12 Grade/Perfect Score AIME/Perfect Score Springsoft Contest Mathematics/Gold Medal Springsoft Contest Sciences/Excellence Award TRML High School Mathematics Contest/Bronze Medal The 48th National Junior High School and Elementary School Science Fair - Physics/2nd Place The Hsinchu City 26th National Junior High School and Elementary School Science Fair Junior High School Group B/Champion The Hsinchu City 26th National Junior High School and Elementary School Science Fair - VIII. Neighboring Community Activities The Science Park Administration integrated various resources from HSP tenants and adjacent communities in 2008 to from an interaction platform via entertainment activities and cultural festivals, in an eye to enhance mutual relation and regional development. The interaction programs held in 2008 include: 1. A seminar was jointly held by the TFCC, the Park Development Association, and the Association of Industries in Science Parks on January 21 to share resources at the park. 2. A program to celebrate Lantern Festival entitled "Celebrating Lantern Festival with a Lake Tour" was held with the Park Community Development Association and National Experimental High School at Hsinchu Science Park on February 21. 3. Collaborating with Faraday Technology Corporation, a "Flute Duo" performance was held on Mach 4, which includes the works of Shaquille and Hugo. 4. Collaborating with Applied Materials Inc., an art festival entitled "Taiwan Applied Literature Art History Seminar" was held from March 15 to April 5, which received an excellent audience response. Following up on this success, the "Millet - Field Art and Naturalism" art history seminar was held on June 15. Elementary School Group A/Champion 5. A concert entitled "Musicals in the HSP" was held at the park auditorium on April 8. National High School Mandarin Recital/Champion 6. Collaborating with the Association of Industries in Science Parks and Welfare Association, the "2008 Dating Game" was held on April 26, with involved 60 couples. Life Education "3Q VERY MUCH Activity" and AQ (Adversity Quotient) / Excellence Award National High School Chorus Contest/Outstanding Award National Elementary School Chorus Contest/Excellence Award The 3rd Taiwan International Children TV Film Festival/"Children Award" The Ministry of Education "Morning and Body Exercise Teaching Material"/ Special Award Supports & Services Table 10 7. The tenth Summit between HSP, Hsinchu County, and Hsinchu City was held on May 1. 8. Collaborating with the ITRI, National Tsing Hua University, and National Chiao Tung University, a collaboration meeting integrating industries, government sectors, academia, and research institutes was held to change views on a great international event entitled "2009 ASPA Annual Conference" and future links among international students, industries and academia. 9. Dr. L. C. Lee, Minister of the National Science Council, visited the HSP in September, November, and December, to change views with entrepreneurs on collaboration among industries, academia, and government sectors. 66 10. Coordinating with Taipower to help Shien-Kong Township relocate transceiver stations of mobile phone problems. 11. The Science Park Administration Helped maintain hygiene and cleaning of KaoFeng Township. 12. Collaborating with Accton and the Hsinchu Fund for Children and Families, the 2008 Christmas "Dream Come True Activity" was held to present gifts for social inferior children. 67 I. The Science Park Administration held a grand opening ceremony for the Hsinchu Biomedical Science Park on March 6, 2008. The Park is expected to be associated with the Nankong Science Park and the Luchu Biomedical Science Park for development of biomedical industries. January 2008 I. Ms. Elizabeth Monard, Secretary General of the Belgium National Science Foundation, visited the HSP on January 21. II. IMEC Belgium held a grand opening ceremony at the SIPP Center on January 22. III. The Science Park Administration transformed the old police station into a public services station, where the volunteer groups, R e t i r e e s ' A m i t y A s s o c i a t i o n , Visit by the Secretary General of National Science Foundation in Belgium Psychological Counselling Center, Employee Cooperative Society, and Welfare Association for the Blind were funded and started in operation on January 23. February I. The Science Park Administration and held the "Wednesday Biking to Work Activity” on February 20, which was a carbon dioxide-reducing, environment-friendly, and healthy activity. 68 March II. The Science Park Administration, the Association of Industries at the Science Park and the Park Community Development Association held the "Golden Mouse Puzzle and Lantern Festival around Jing-Sin Lake" on February 21, which attracted nearly 2,000 people. III. Ms. Rebecca O. Bagley, Deputy Director of the Chamber of Commerce of Pennsylvania, and Mr. David Briel, Director of Investment of the Chamber of Commerce of Pennsylvania, visited the HSP on February 26. II. The Science Park Administration hosted a Ground-Breaking Ceremony for the extension base on Park Avenue III and V, together with the Ground-Breaking Ceremony of TSMC, PSC, and VIS. III. A group of business leaders attending the Summit of Taiwan, Central Latin America, and the Caribbean Countries visited the HSP on March 12. IV. The Council of Economic Planning and Development, Executive Yuan approved the Tongluo Park development project on March 19, 2008. Low pollution industries, e.g. semiconductors, IC design, and optoelectronics, are expected to bring in the Park. Summary of Major Events ANNUAL REPORT 2008 HSINCHU SCIENCE PARK VI. Summary of Major Events Visit by the Deputy Chairman of Russian Academy of Sciences, Siberia Branch. V. Dr. Vasily Fomin Deputy Dean of School Siberia of the Russian Academy of Sciences, visited the HSP on March 20. April I. Mr. Reha Denemec, Vice Chairman of the ruling party of Turkey, visited the HSP on April 3. II. The Science Park Administration cooperated with the Environmental Protection Administration, Executive Yuan to support the Earth Day on April 22, urging the public to help reduce green house effect. Park employees were urged to take part in the "Ten Announcements for Carbon-reduction Online," to take public transportation tools to work, to turn off office lights for one hour during lunch break, to walk instead of using elevators, to eat local foods, and to quit smoking. III. Prof. Kazumi Matsushige, Vice President of Kyoto University, visited the HSP on April 24. IV. The Science Park Administration and the Association of Industries in Science Park held the "2008 HSP Spring Social Event for Singles" on April 26. 69 II. Dr. Ivan Rozman, president of Slovenia University, visited the HSP on June 4. I. The Science Park Administration Hsinchu County Government and Hsinchu City III. Mr. Randy Yen, Director General of the Science Park Administration, visited San Government jointly held the 10th "HSP, Hsinchu County, and Hsinchu City Summit Diego in the USA to host the "Bio2008 North America Exposition" and talent Meeting" at the Science Park Administration on May 1, 2008. recruitment programs from June 15 to 22. A meeting was held with Genetech, Inc. regarding the possibility of CMO/CGMP facilities set up at the Hsinchu II. The Science Park Administration Biomedical Science Park. Director General Yen also visited many companies, e.g. eagerly promoted broadband Ando Science, Edwards Life Science, and Chen-tech Co. Ltd, to further discuss channel construction at the recruitment issues. HSP, which was ranked second IV. Mr. Mervyn Stephenson from the Manchester Investment Bureau in the U.K visited among 23 counties/cities the HSP on June 23. and m e t r o p o l i t a n r e g i o n s nationwide by the Construction July a n d P l a n n i n g Ag e n c y. Th e I. Dr. Adel Tweisi from the Hatha Science City in Jordan visited the HSP on July 2. awarding ceremony was on May 14, 2008. III. The Welcoming Ceremony for II. Mr. Shin Yong-Sik from the Wuchong Science Park in Korea visited the HSP on July Director General Handover Ceremony the new Director General of the 11. III. The Science Park Administration participated in the "BioTaiwan: 2008," at Exhibition Science Park Administration Summary of Major Events ANNUAL REPORT 2008 HSINCHU SCIENCE PARK May Hall I of the Taipei World Trade Centre during July 24 to 27. Eight biotechnology took place on May 20, 2008. Mr. companies, e.g. General Biologicals Corp, Hsinchu Biomedical Science Park Project Office, etc., were invited to join the HSP Theme Park. Randy Yen assumed the Director General of the Science Park August Administration. IV. Ms. Lisa Scaffidi, Mayor of Perth I. Mr. Yoo Byung Jik, Chairman of Kyonggi Park Preparatory Commission in Korea, in Australia, visited the HSP on visited the HSP on August 18. May 21. II. The Science Park Administration, the Asian Science Park Association-ASPA, and V. Mr. Miura Kazuo, President of Hitachi in Taiwan, visited the the ITRI held the "2008 Taiwan Korea High-tech Business Forum" at the ITRI on Visit by the Mayor of Perth in Australia HSP on May 21. June 70 I. Dr. L. C. Lee, Minister of the National Science Council and Dr. L. J. Chen, Deputy Minister of the National Science Council, visited the HSP on June 4. After listening to a briefing on the science park development, they visited the Tongluo, the Jhunan, SIPP Center, and the Longtan Science Park. August 20. Telecommunications and electronics businesses in Changwon Cluster, Gumi Cluster, and Daegu Science Park conducted business discussions, with over ten high-tech enterprises at the HSP participated in the Forum. 71 October I. Mr. Randy Yen, Director General of the Administration, led colleagues to attend the eighth Industry and Academia Collaboration Meeting in Kitakyushu Japan on ANNUAL REPORT 2008 HSINCHU SCIENCE PARK October 5 and gave a speech at the "Taiwan HSP Seminar" and discussed relevant business cooperation affairs. II. President Ma, accompanied by Dr. L. C. Lee, Minister of the National Science Council, and Dr. L. C. Chen, Deputy Minister of the National Science Council, visited the Hsinchu Biomedical Science Park on October 25 to gain a whole picture of the latest Summary of Major Events development of the park. Visit to the Park Firms by Minister of National Science Council September I. Mr. & Mrs. M. Kleiber, Dean of the Polish Academy of Sciences, visited the HSP on September 4. Visit to the Hsinchu Biomedical Science Park by President Ma II. Dr. L. S. Tung, Deputy Director General of the Hsinchu Science Administration, was invited by the International Cooperation and Development Fund of the Ministry of Foreign Affairs to visit Warsaw, Poland on September 6 and to present a speech November at the Krynica Economy Forum. I. Prof. Dr. Gonzalo León, Vice President of Madrid University in Spain, visited the HSP III. Dr. L. C. Lee, Minister of the National Science Council, Dr. L. C. Chen, Deputy 72 on November 21. Minister of the National Science Council, and Dr. F. L. Yang, Director of the National II. Dr. L. C. Lee, Minister of the National Science Council, and Dr. L. C. Chen, Deputy Nano Device Laboratories, accompanied by Mr. Randy Yen, Director General of the Minister of the National Science Council, accompanied by Mr. Randy Yen, Director Administration visited TSMC, UMC, PSC, MTI, and MTK at the HSP on September 9 General of the Science Park Administration, visited Innolux, TPO, and EPISTAR to gain a whole picture of links between industries and academia. at the Jhunan Science Park, to understand the development of high-tech to IV. Dr. Suh Sang Hyuk from Daedeok Park in Korea visited the HSP on September 16. industries at the park and to promote collaboration between industries and academia. HSINCHU SCIENCE PARK 73 Appendix December I. Dr. L. S. Tung, Deputy Director General of the Science Park Administration, led December 7 and visited Microsoft, Boeing, and DRVision Technologies LLC in Seattle. Table 11 II. The Science Park Administration a n d N a t i o n a l C h a i o Tu n g University held the "2009 SIPP Innovation Seminar" at the R&D Year Growth of Company Number, Employment Population, Paid-in Capital, and Sales Unit: NT$ 100 million Revenue at the HSP No. of Companies No. of Employees Paid-in Capatals Sales Revenue Center of the SIPP Center on December 11. Vice President 1980 7 - - - 1981 17 - 7 - 1982 26 1,216 12 - 1983 37 3,583 20 30 1984 44 6,454 32 95 at the Association of Industries 1985 50 6,670 41 105 in Science Parks on December 12, with participation from park enterprises, academia 1986 59 8,275 57 170 and research institutes, the National Science Council, Central Taiwan Science 1987 77 12,201 106 275 Park Administration, the Southern Taiwan Science Park Administration, Hsinchu 1988 94 16,445 158 490 County/City Governments, and media, totaling over 300 participants. Also, ten 1989 105 19,071 282 559 innovative product awards were presented to more than 70 companies and 1990 121 22,356 427 656 individuals. 1991 137 23,297 551 777 IV. The National Science Council supported the promotion of the "HSP Businesses 1992 140 24,788 628 870 Integration Archive G2B Plan" and the Science Park Administration officially 1993 150 28,416 669 1,290 launched online on December 29. 1994 165 33,538 935 1,778 1995 180 42,257 1,477 2,992 1996 203 54,806 2,584 3,182 1997 245 68,410 3,756 3,997 1998 272 72,623 5,106 4,550 1999 292 82,822 5,660 6,509 2000 289 96,642 6,945 9,293 2001 312 96,293 8,588 6,625 2002 334 98,616 9,100 7,054 2003 369 101,763 9,925 8,578 2004 384 113,011 10,501 10,859 2005 382 114,863 10,402 9,879 2006 395 121,762 11,639 11,209 2007 416 129,512 11,514 11,462 2008 430 130,577 11,398 10,080 Shou, was invited to give a speech at the Seminar. III. The Science Park Administration celebrated the 28th anniversary 74 Award Ceremony in the HSP Anniversary SIPP Innovation Achievements Presentation and Seminar Appendix ANNUAL REPORT 2008 HSINCHU SCIENCE PARK colleagues to attend the 2008 AURP Convention in St. Petersburg, Florida on 75 Educational Backgrounds of Employees at th HSP ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Educational Backgrounds 76 Table 13 Unit: Person Total Average Age Year Ph.D. 1986 74 419 1,508 1,431 4,308 535 8,275 - 1987 79 508 2,049 2,131 6,242 1,192 12,201 - 1988 94 695 2,983 2,949 7,834 1,890 16,445 - 1989 112 950 3,644 3,546 8,800 2,019 19,071 1990 166 1,324 4,348 4,312 9,460 2,746 1991 179 1,563 4,495 4,723 9,745 1992 198 1,847 4,635 5,292 1993 244 2,314 4,931 1994 336 3,296 1995 521 1996 Master Bachelor College High School Others HSP Innovative Technology R&D Project Subsidies Fiscal Year No. of No. of Cases Companies Unit: NT$ million Subsidy Amount Total Budget Subsidy % 1986 9 22 20 75 27 1987 17 34 28 103 27 1988 20 31 25 122 21 - 1989 15 18 17 104 17 22,356 30 1990 16 23 35 145 24 2,592 23,297 30 1991 28 33 52 301 17 10,549 2,267 24,788 31 1992 25 31 47 198 24 6,061 12,076 2,790 28,416 31 1993 40 51 122 440 28 5,947 7,340 13,571 3,048 33,538 31 36 49 96 373 26 7,852 9,624 16,012 3,411 42,257 1994 4,837 30 699 6,699 10,875 13,843 18,239 4,451 54,806 31 1995 34 36 90 297 30 1997 839 8,488 12,950 17,409 21,780 6,944 68,410 31 1996 36 43 92 333 28 1998 985 10,033 14,329 19,177 23,029 5,070 72,623 31 1997 38 43 107 388 28 1999 1,078 13,494 17,973 19,618 25,310 5,349 82,822 31 1998 31 33 73 295 25 2000 1,209 14,805 18,066 25,145 31,663 5,754 96,642 31 1999 25 26 68 248 27 2001 1,207 16,736 20,337 24,460 27,056 6,497 96,293 32 1999/07~2000/12 48 58 140 537 26 2002 1,210 17,967 21,690 24,433 27,202 6,114 98,616 32 2001 30 30 72 311 23 2003 1,223 19,338 23,162 24,181 27,270 6,589 101,736 32 2004 1,295 31 36 100 386 26 27,329 25,571 30,015 7,336 113,011 2002 21,465 31 2005 1,355 20,800 27,078 26,688 30,983 7,959 114,863 30 2003 28 29 76 308 25 2006 1,357 22,539 29,766 27,236 31,491 9,373 121,762 30 2004 36 39 106 428 25 2007 1,422 24,472 34,113 28,250 32,491 8,764 129,512 31 2005 21 21 64 233 27 2008 1,696 27,230 37,482 25,577 29,863 8,729 130,577 31 2006 3 3 9 39 23 2007 12 13 48 149 32 2008 11 12 42 141 30 Note: 2005 included 3,280 foreign employees 2006 included 3,911 foreign employees 2007 included 3,923 foreign employees 2008 included 3,943 foreign employees Appendix Table 12 77 Table 15 HSP R&D Expenditure HSP R&D Expenditure / Sales Revenues Unit: NT$ million ANNUAL REPORT 2008 HSINCHU SCIENCE PARK Industries 78 Year IC ComputersandPeripherals Telecommunications Optoelectronics PrecisionMachinery Biotechnology 1988 412 1,191 276 17 16 16 1989 777 1,375 250 38 84 1990 1,294 1,598 411 38 1991 1,439 2,058 498 1992 1,950 1,580 1993 3,516 1994 Total Unit: % Industries ComputersandPeripherals Telecommunications Optoelectronics PrecisionMachinery Biotechnology Total Year IC 1,928 1988 6.7 4.5 6.6 3.7 6.1 3.8 5.1 17 2,536 1989 6.7 4.0 3.7 2.8 19.1 2.4 4.6 68 20 3,429 1990 9.0 4.6 3.2 3.5 9.8 3.9 5.4 132 60 17 4,204 1991 6.8 6.2 3.8 7.4 11.4 3.0 6.0 578 178 133 39 4,458 1992 6.4 4.1 5.7 13.3 10.5 8.4 5.4 1,633 698 230 168 48 6,293 1993 6.3 3.0 5.2 6.5 10.4 16.7 4.9 4,648 2,027 954 484 154 79 8,346 1994 5.5 2.8 6.6 9.3 6.5 19.1 4.6 1995 7,428 2,847 1,201 785 223 86 12,570 1995 5.0 2.3 7.1 7.8 8.9 42.8 4.2 1996 11,689 3,784 1,110 974 185 82 17,824 1996 7.4 3.1 5.8 5.6 6.7 27.5 5.6 1997 15,582 4,776 1,413 1,430 173 134 23,526 1997 7.8 3.4 5.3 5.1 5.1 33.2 5.9 1998 22,152 5,969 1,619 1,863 482 237 32,322 1998 9.6 3.7 6.1 6.3 6.4 41.7 7.1 1999 22,537 7,257 2,163 3,170 96 230 35,454 1999 6.2 3.6 6.7 6.2 2.0 34.5 5.4 2000 26,268 6,060 2,363 4,214 380 780 40,064 2000 4.5 2.9 4.6 4.6 5.1 65.1 4.2 2001 44,335 6,443 3,367 4,427 101 265 58,938 2001 11.8 4.0 6.0 7.1 2.1 19.9 8.9 2002 48,364 4,608 3,337 3,002 194 402 59,907 2002 10.6 3.7 5.9 5.0 3.6 28.4 8.5 2003 46,755 4,570 2,203 4,630 256 443 58,866 2003 8.3 3.4 3.9 4.9 4.4 24.1 6.8 2004 47,671 5,907 2,595 6,296 515 412 63,397 2004 6.4 4.3 4.3 4.8 5.6 16.2 5.8 2005 54,065 4,684 2,334 5,379 610 438 67,510 2005 7.9 4.6 4.8 3.9 6.2 14.6 6.8 2006 52,149 4,046 2,454 4,949 750 537 64,885 2006 6.6 4.0 5.4 3.4 5.6 17.5 5.9 2007 55,005 3,373 2,226 4,220 1,008 702 66,554 2007 6.8 3.6 6.1 2.4 9.8 22.4 5.9 Appendix Table 14 79