Southern Science Park Projects Record NT$300 B. In 2004 Revenues

The Southern Taiwan Science Park is projecting total revenues of NT$300 billion (US$8.82 billion at NT$34:US$1) for 2004, much better than its target of NT$250 billion (US$7.35 billion), and expects the figure to reach NT$1 trillion (US$29.4 billion) in 2009, according to Tai Chien, director general of the park administration.

In the first half of 2004 the park experienced a 102.98% growth in revenue, compared with the same period of 2003, to NT$123.65 billion (US$3.64 billion). Of that total, 66% came from optoelectronics firms.

Tai reports that manufacturers of thin film transistor-liquid crystal display (TFT-LCD) panels, who have formed a cluster in the park, are major contributors to its revenues. This year's global economic recovery has helped boost demand for their products, in turn heightening their—and the park's—revenues.

Southern Taiwan has a second science park, the Kaohsiung Science Park in Luchu, Kaohsiung County. A total of 145 manufacturers have received approval to enter the two facilities, 120 in STSP and the remaining 25 in the Kaohsiung park. Eighty of the manufacturers are already running operations in the parks, and another 65 are building plants or preparing to do so.

Tai claims that several Taiwanese manufacturers operating in mainland China have expressed an intention to return to Taiwan (and possibly enter the science parks) after encountering more problems than expected, including frequent electrical shortages, in the mainland.

Chi Mei Optoelectronics Corp. and Hannstar Display Corp., Taiwan's two leading makers of TFT-LCD panels, have already set up in STSP, bringing large numbers of upstream parts makers with them. Chi Mei has decided to establish a facility in the Kaohsiung Science Park as well.

As of June 2004 STSP had a total work force of 28,000, and 12,000 more are expected by the end of the year. Most of the new personnel are technicians and skilled workers, with the remainder consisting of general engineers, R&D engineers, and management staff. The park usually provides about 1,200 new jobs every month. Executives and R&D people are the most difficult to recruit.

In addition to Taiwanese enterprises, STSP has attracted NT$2.66 billion (US$78.24 million) in investment from nine Japanese companies. The nine firms have brought in 139 Japanese employees, most of which are top managers and engineers.

To provide a better environment for foreign workers, STSP is building an international elementary and junior high school for their children. The school will offer instruction in English and Japanese as well as Chinese.