Hsin Chu Science Park Production Increases

The Hsin Chu Science Park is one of the most important incubators of industry and technology in Taiwan. It is therefore always interesting to read news about them. Today, the news is good. The China Post reports production for the the first half of 2008 increased by over 4%. The China Post writes:

Hsinchu Science Park's production reached NT$553.379 billion for the first half of 2008, up 4.25 percent over the level for the same period last year, the park's administration said yesterday.

The integrated circuit and optoelectronics industries accounted for 88.2 percent of the park's production for the January-June period, according to the administration.

The production value of optoelectronics companies within the park amounted to NT$103.03 billion, up 41.86 percent year-on-year, thanks to continued growth of flat panel display manufacturers and individual optoelectronics giants, such as AUO.

The integrated circuit manufacturers' production value totaled N$385.064 billion, rising only 0.28 percent year-on-year largely due to the weak performance of the DRAM industry, the administration said.

Despite the overall increase in production, several industries in the park experienced declines for the first half of the year, including the precision machinery industry, down 2.97 percent to NT$5.604 billion, and the biotechnology industry, down 6.83 percent to NT$1.669 billion.

Randy Yen, director-general of the park's administration, said that although the local economy and manufacturers continue to face challenges brought about by the U.S. subprime crisis, high oil prices and global economic sluggishness, the park's production is expected to increase in the second of half of this year as the various high-tech industries within the park enter their high seasons.

The park's production value is forecast to reach NT$1.198 trillion for this year, which would represent an increase of 4.53 percent over the year-earlier figure, according to Yen.

He further said that the park, with its top quality facilities, has helped bring about sustainable development for Taiwan's economy.

Yen predicted that 500 companies will be established within the park by the year 2011, at which time the park's production is likely to reach the NT$1.5 trillion mark.

What I do like about the above is the honest description of the economic problems in Taiwan and the challenges faced by Taiwanese companies. The new president of Taiwan ran on a ticket of economic reform and prosperity and blamed the previous governmment for all the economic difficulties in Taiwan (although this is debatble). However, the manufacturing sector in Taiwan and especially the hi-tech industry has been impacted by external factors including, as described above, the "U.S. subprime crisis, high oil prices and global economic sluggishness." The director also fails to mention a very weak US dollar also negatively impacting the profit of many Taiwanese companies.

The continued prosperity and success of the Hsin-Chu Science park is impressive as is the continued growth of the number of companies actively engaged in the park. The corporate titans of Taiwan evidently see the future as being positive otherwise they wouldn't invest and open new companies here. Hopefully the park continues to go from strength to strength.

The China Post: Hsinchu Science Park production up 4.25% in first half of year