August 17, 2004
Nine wholly Japanese-owned enterprises in the Southern Taiwan Science Park (STSP) have already invested a total of
NTD 26.6 billion in the park. These companies, which include Finex Co., International Display Technology and SC-IK Technology, have been drawn to the park chiefly through their intimate technology transfer relationships with such major Taiwanese LCD display companies as Chi Mei Corp. and Hannstar Display Corp. As Taiwan is forecast to overtake South Korea to become the world's top source of LCD panels, and optoelectronics operations already account for nearly two-thirds of this science park's total revenues, the STSP is sure to see an increase in investment from these and other Japanese enterprises in the near future.
Most of the Japanese enterprises in the STSP are either still constructing their facilities or have only recently kicked off production. Their combined monthly revenues have already grown to around
NTD 300 million. However, as more plants go on line in early 2005, their contribution to the park's total revenues is expected to rise dramatically.
These Japanese companies have brought 139 Japanese employees, mostly mid- and high-level executives. The majority of their other employees are Taiwanese, and they aim to gradually move their Taiwanese employees into management positions in order to more fully localize their operations.
Upon first investing in the park, most of these Japanese companies focused on cutting and finishing for LCD-TFT panels, however, after establishing their own plants, they have been performing more technologically advanced processes. For example, SC-IK Technology initially conducted large-size panel cutting in the park, but has now expanded the scope of its operations to include even the production of essential raw materials.
And, it's no wonder Japanese high-tech companies have moved into the STSP, because things surely are heating up there. Park officials report that the 65 manufacturers in the park that have already started production generated combined revenues of
NTD 123.652 billion in the first half of the year, a growth of 200% on the year. This year's total annual revenues are forecast to climb 600% on the year to reach
NTD 300 billion.
The value of exports from the park in the first half of the year grew 78.64% on the year to reach
NTD 92.2 billion. The park's import value increased 220% on the year to
NTD 120.5 billion in the same period. As optoelectronics and semiconductor makers continue to expand production, they are boosting their imports of machinery and equipment from overseas.
Taiwan's two star high-tech industries, optoelectronics and semiconductors, have generated 66% and 31% respectively of the park's total revenues in the first half of the year. However, the park is also home to biotech, telecom and precision machinery companies, which have seen their production values increase by 160%, 53% and 35% respectively in the first half of the year.
Here's an interesting aside regarding the current state of industrial development in Taiwan. With LCD TV makers expanding operations on the STSP and many semiconductor manufacturers already long established in the Hsinchu Science-based Industrial Park (in northern Taiwan), industry analysts have introduced the maxim "IC in the North, optoelectronics in the South".
(United Daily News)
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