Taiwan unveils draft plan for expanding semiconductor clusters in Hsinchu Science Park

Bryan Chuang, Taipei; Willis Ke, DIGITIMES Asia 0

Credit: National Development Council

The National Development Council (NDC) has just revealed a draft implementation package for the "Taoyuan-Hsinchu-Miaoli Silicon Valley Promotion Plan," proposed by President-elect Lai Ching-te of the ruling Democratic Progressive Party (DPP) during the 2024 presidential election. This initiative aims to enhance the semiconductor industrial clusters in the Hsinchu Science Park.

During a recent Cabinet meeting, the NDC highlighted the comprehensive supply chain and international logistics advantages in the Taoyuan, Hsinchu, and Miaoli regions. These areas also benefit from abundant research and innovation resources from industry, government, and academic sectors. The implementation of the "Taoyuan-Hsinchu-Miaoli Silicon Valley Promotion Plan" is expected to create employment opportunities, elevate wages, and promote balanced regional development, ensuring broader participation in the benefits of economic growth across the country.

The impetus behind the ambitious "Silicon Valley" project lies in the global competition in chip manufacturing, particularly from countries like Japan, the US, and Germany. To maintain Taiwan's semiconductor leadership, it is crucial to address challenges such as land scarcity, power supply, and water resources. As industrial park land in the Hsinchu area reaches saturation, the government aims to integrate available space in Taoyuan to the north and Miaoli to the south into a cohesive plan. This integration will facilitate the expansion of land areas and resources for the technology industry, thereby retaining corporate investments in Taiwan.

To deter land speculation and ensure effective development, the NDC and relevant government agencies have chosen not to disclose specific land boundaries at this stage. Instead, they emphasize expanding industrial parks' development scope, with progress to be regularly monitored by the Executive Yuan. Addressing critical water resource needs, plans include increasing the height of the Baoshan Second Reservoir and constructing water recycling plants in Taoyuan and Hsinchu, alongside building the Bade booster station to enhance water supply to the region.

In terms of transportation infrastructure, the Silicon Valley project aims to construct new expressways, such as the MeiLong Expressway (from Yangmei to Longtan) and the BanLong Expressway (from Banqiao to Longtan). Additionally, enhancements to highway interchanges and surrounding traffic networks will complement the existing Taoyuan and Hsinchu rail systems, providing a seamless transportation network for the "Silicon Valley" area.