Securing the Future Regional and National Programs to Support the Semiconductor Industry (2003) / Chapter Skim
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Panel 4: The Taiwanese Approach
Panel 4: The Taiwanese Approach
Pages 149-163
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From page 149... ...
Windham called the short history of the Taiwan semiconductor industry "a rare success story." The principal Taiwanese companies in semiconductor production are already world leaders in their specialties: Taiwan Semiconductor Manufacturing Co.
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From page 150... ...
He said that Taiwan divides its industry into four sectors: design, which consists primarily of fabless semiconductor or design houses; fabrication, which includes foundries and also IDMs (integrated device manufacturers) , such as Winbond and some DRAM companies with fates and other products; packaging; and testing.
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From page 151... ...
The institutions or organizations that execute the activities are universities, research institutes, and industnes. Among the more prominent labs are the Nano Device Laboratory under the NSC and the Chip Implementation Center, which is supported by NSC but managed by ITRI.
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The Nano Device Lab's annual budget runs roughly NT $300 million, with extra amounts sometimes needed for equipment. This amount has compensated, in some sense, for the low direct funding for uni.
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From page 153... ...
in that it was an independent entity doing contract work for the government. Initially there was some grant money from the government, but once ITRI was established the government money stopped, and ITRI survived by obtaining contracts.
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ERSO continued to be the source of human resources for the industry. The Power of Spinoffs He skipped ahead to 1994, when a similar company formation gave rise to Taiwan's DRAM industry.
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Companies proposed projects, but the funding amounts were not large. The Hsinchu Science-based Industrial Park (HSIP)
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From page 156... ...
As in other countries government funding levels are inadequate to support an effective R&D effort, simply because the cost of manufacturing equipment has increased so fast. Taiwan has studied the models of SEMATECH, Selete, ASET, IMEC, and other consortia, and it plans to combine industry money with government money to do R&D for the common good.
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From page 157... ...
The Concept of the Science Park In 1980 this government policy was augmented by the concept of the science park. The government provided major venture capital as well as some tax deductions or exemptions for companies that moved to the park.
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The park is located close to the Chang Kai Shek (CKS) International Airport and near Taipei City, so it enjoys locational benefits of transportation and human resources.
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From page 159... ...
Hsinchu Science Park has a "terrible" traffic situation, he said, and wastewater has become a critical and irritating issue for the local government. This is a politically difficult situation because the local government does not experience benefits from the park, which is
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From page 160... ...
He noted that most of the presentations had focused on the importance of national semiconductor consortia to national and global competitiveness. Three Conditions Favoring Consortia He noted three conditions favoring consortia: First, new science is increasingly expensive to develop and requires multiple partners to pay the bills; second, R&D has spillovers that invite free-ridership that consortia can internalize; and third, the absence of cooperation and coordination can lead to duplication of effort and what Schumpeter called "destructive competition." He said he would expand on two points made in many of the presentations.
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From page 161... ...
The Nano Devices Institute would fall into this category as a focused, leading technology center. An example at the state level in the United States would be the North Carolina Biotechnology Center.
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From page 162... ...
On one end are the large, national consortia that emphasize basic research; they also have a high degree of spillover and consequently fewer direct local applications. Next along the continuum are programs supported directly by federal funds, which also emphasize basic research, including university R&D centers.
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From page 163... ...
The company is supporting university programs and encouraging professors to generate more graduates, but he affirmed that, "on a large scale, there is a problem." Dr. Hu was also asked about the H-1B visa: Could young Chinese engineers still come to the United States, go to graduate school, gain work experience, and then return to Taiwan?
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