Science Park Administration

1. Science Park Administration

2. Content • General Information • Industries • Development Status • International Reputation

3. 1. General Information

4. HSP in 1980s Park Administration Waste Water Plant Main Entrance Park Phase I Resettlement Area Housing Units Power Plant

5. HSP at Present Synchrotron Radiation Research Center National Chiao Tung University National Tsing Hua University Park Housing Units Science Park Museum Park Residential Area Park Life Hub Science Park Administration --NCTU --NTHU

6. Why Science Parks High-tech Talent High-tech Investment Rooting High-tech Industries

7. Science Parks in Taiwan • Startup of HSP: Dec. 15, 1980 • Managed by: Science Park Administration, National Science Council (Hectares) HSP(1342) Yilan (71) (under construction) Longtan (107) (2004) Hsinchu Biomedical (38) (under construction) North Hsinchu (653) (1980) Jhunan (123) (1999) Tongluo (350) (under construction) CTSP(1658) Chung Hsing (261) (under construction) Holi (255) (2006) Taichung (413) (2003) Central Erlin (635) (under construction) Huwei (97) (2006) STSP(1613) Tainan (1,043) (1996) Kaoshiung (570) (2001) South Total: 4,613 Hectares

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

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

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

11. One-Stop Services The Administration is authorized to offer all necessary services for Park tenants: MOEA, MOF, CLA, MOI, MOE Authorization Investment R&D grant Foreign labor Construction Business reg. Labor safety Security Bilingual school Environmental protection Fire-fighting Trade license Tax break Support Water, power, safety, environmental protection, transportation commissions of Park Association Custom, banks, post office, clinics, shipping, etc.

12. National Labs • National Applied Research Laboratories (NSC) • National Nano Device Laboratories • Instrument Technology Research Center • National Space Program Office • National Center for High-performance Computing • National Chip Implementation Center National Synchrotron Radiation Research Center (NSC) National Health Research Institutes Animal Technology Institute Taiwan (Department of Health) (Council of Agriculture)

13. 2. Industries

14. Annual Revenue and Industry Changes Million USD % Innovation PC-Driven IC-Driven PC IC Opto Telcom * 2001 U.S.’s 911 and Japan’s recession caused global economy to revise 35% * 2003  Outbreak of SARS * 2008-2009  Global financial tsunami * 2000-2009 annual revenue of HSP contributes to 9% of domestic manufacturing revenue

15. Industry Revenue Allocation ICs 67.5% Computer 6.4% Telecommunication 2.7 Optoeletronics 20.7% Precision Machinery 1.8% Biotechnology 0.4% Others 0.2% Total Sales Revenue：32 Billion USD (2010.01-10) (The total sales revenue of 2010 is estimated to be 37 billion USD)

16. 2010. 01-10 Revenue Billion USD Industries Revenue (2010.10)

17. IC Industry No. of Tenants: 192 Equipment *17 Chemical *1 IC Manufacturing *17 IC Design (Fabless) *129 Mask *5 EDA*5 DNP,TMC Wafer *6 IC Packaging *11 Leadframe *3 Testing *3 (2010.10)

18. Image Display Industry ITO thin film Photo-lithographic mask Backlight module Optical film Driver IC upstream midstream TFT LCD LCoS panel Mirasol E-paper OLED downstream Front/back projector N/B LCD Digital camera LCD projector

19. LED/LD Industries Chip System LD module Epi Wafer Upstream Midstream Downstream Epi wafer Crystal grain subsystem application Traffic signal/ billboard LED/ backlight LED LD

20. Solar Energy Industry 太陽能電池 Polysilicon Wafer Cell Module System

21. Biotech Industry Agricultural Biotechnology Healthy Food Biomedical Materials Medicine *Biotech materials *Seedling *Plant protector *Plant fabs *Food supplement *Functional food *Material medicine *Medicine diffusion *New medicine *Analytical Tests *Medical Devices *Biomedical Wastewater Treatment *Medical Kits Supporting Biotechnology Environmental Protection Biotechnology Testing Kits

22. Renowned Tenants fromA to Z !!

23. Foreign Tenants Germany Belgium Switzerland (2010.10) Japan Singapore U.S.A. • APPLIED MATERIALS • LAM RESEARCH • KINGSTON • DUPONT TAIWAN LIMITED • SEMATECH • QUALCOMM TAIWAN • INVENSENSE TAIWAN • IMPAX LABS • PHOTRONICS • DOW CHEMICAL • LTI DRIVES • LOGITECH • IMEC • SHIN-ETSU OPTO • SHIN-ETSU HANDOTAI • RORZE TECHNOLOGY • DENMOS TECHNOLOGY • YUASA-DELTA • HOYA • TOKYO ELECTRON • ULVAC • SUMIICA • KEST • INNOMEDIA • STATS CHIPPAC

24. Potential High-tech Industries Electric vehicles Solar energy Wind power Green-tech Industries Cloud Computing Services Smart Grid Lithium Secondary Battery Digital Home Fuel Cell Biomass LED MEMS Biotechnology

25. 3. Achievements

26. HSP Industry Outcomes (2010.10) Hsinchu Science Park • Industry: IC and optoelectronics • Established in 1980 • Area: 653 hectares Jhunan Science Park • Industry: Optoelectronics and biotech. • Established in 1999 • Area: 123 hectares Longtan Science Park • Industry: Optoelectronics • Established in 2004 • Area: 107 hectares 25

27. Tenant Number Growth No. of companies No. of companies setup by overseas Chinese: 95

28. Revenue Growth Billion USD - 911 - overseas revenue was not included Global economic tsunami

29. Employment Population Growth No. of Employees Year

30. Educational Background Others Ph.D M.S 5,577 4.65% 2,339 1.72% High School 34,108 24.13% 29,757 21.86% B.S Junior College 43,701 30.37% 24,405 17.45% Average age: 33 Male: 57% Female: 43% Total:142,030 (includes 3,815 foreign employees and 1,035 foreign highly skilled employees ) (2010. 10)

31. R&D and Patents HSP R&D/Sales Ratio Averaged R&D/sales ratio accounts 6.02% from 1989-2008 where national manufacturing industry is 1.14% Number of Patents approved in the U.S. HSP shares 15% of patents approved in the US domestically

32. HSP’s Contribution to Taiwan’s Economy 1. Raise in income: • HSP contributes to 4.5% of Taiwan’s GDP • In 2008, the average income per household in Hsinchu City was 47,081USD—second only to Taipei in Taiwan; the average expense per household in Hsinchu City was 33,226USD—also second to Taipei. 2. Enhancement in regional prosperity: • The total consumption expenditure (from 1970 to 2009) in Hsinchu City and Hsinchu County reaches 30.37 billion USD • Increasing central and local tax revenue (from 2000 to 2008 the national tax revenue grew by 40%, Hsinchu City 154%, Hsinchu County 50%) • Driving the developments of local manufacturing and service industries 3. Job Creation: • HSP takes up more than half of Hsinchu City’s employment population(55%) • In 2008, Hsinchu City’s labor participation is the highest of Taiwan(60.8%), while the unemployment rate of Hsinchu County is the lowest (4.0%)

33. 4. International Reputation

34. International Cooperation 25 sister science parks in 13 different countries Russia: Moscow State Uni. Canada: British Columbia Quebec Metro UK: Manchester France: Sophia Antipolis Sweden: Mjardevi, AB Korea: Ansan Technopark Spain: Andalucía Japan: Kitakyushu, Yokosuka • USA: • Tri-Cities • San Jose • California St. Uni. • Economic Develop. Alliance for Business • Sandia, Arrowhead, & NMU Turkey: Hacettepe Technopark Thailand: Thailand Science Park Vietnam: Hoa Lac Hi-tech Park • Brazil: • Uni. of RGande Do Norte • The Pontificia Universidade Catolica Do Rio Grande Do Sul

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

36. Taiwan’s Leading Products & Industry Capacities Data source：ITRI（2010/04）

37. No. 1 in Global Industry Cluster Hsinchu Science Park is the powerhouse of Taiwan’s high-tech industry and one of the best innovation industry clusters in the world.

38. Superior Operation Model Infrastructure & one-stop services R&D and operational model High-quality of human resource Cluster effect Industry and academia collaboration

39. Competitiveness Points Talent Knowledge Interaction Venture Vitality Creative Life Realization of Industry Clusters Talent Technology Diffusion Enterprise Network Startups Why Successful Science Parks Interacting with Silicon Valley, the HSP has formed a solid foundation in industry structure, entrepreneurship, R&D mechanism, and venture systems and is reputed with its competent technology level, talent pool, and remarkable industry clusters.

40. Vision & Core Value Vision: Nurture a quality investment environment conducive to national economy Core Value: Make things easy for those who we serve, and offer services efficiently, honestly and competently

41. Strategic Goals • Further improve the park as an investment environment by rendering readily accessible services efficiently. • Promote across-the-board technology upgrade to enhance the competitiveness of park tenants. • Build a low-carbon park running on green energy; create an environment conducive to sustainable development. • 4. Strengthen cooperation across industry, government, academia and research institutions to boost the park’s R&D capacity.

42. Thanks for Your Attention!