From Rice Noodles to Silicon Chips: The Birth of Hsinchu Science Park
UMC was the first chip company to set up operations in Hsinchu Science Park, which was officially inaugurated on December 15, 1980, as part of a strategic government initiative to foster the development of high-tech industries.
Nestled in the center of Taiwan, Hsinchu was traditionally an agricultural hub famous for its rice noodles, a craft dating back to the 18th century in the nearby village of Nanshi. Before automation, the labor-intensive noodle production led to a local saying, “Good-quality wood should not form the beams of pig huts, and young ladies should not marry the men of the rice noodle village,” reflecting the arduous nature of the work.
Despite its rural beginnings, Hsinchu was also home to two prestigious institutions: National Tsing Hua University and National Chiao Tung University. These universities were key to providing a rich pool of scientific and engineering talent. The mastermind behind the science park, Shu Shien-Siu, had previously served as President of National Tsing Hua University before becoming Taiwan’s Minister of Science and Technology in 1973. After visits to leading global innovation hubs like Silicon Valley, Shu envisioned creating a similar tech ecosystem near these academic powerhouses.
After years of lobbying, Taiwan’s leadership, including then-Premier Chiang Ching-kuo, greenlit the project. In 1979, Irving T. Ho, an IBM veteran turned government tech advisor, was tapped to turn Shu’s blueprint into reality. Facing initial skepticism due to Taiwan’s reputation for low-cost textile manufacturing rather than tech innovation, Ho leveraged a raft of tax incentives, infrastructure development, and research partnerships to lay the groundwork for the park.
Former Minister of Economic Affairs K. T. Li was among those who significantly contributed to the establishment of the park. Inspired by Stanford University’s Frederick Terman and his role in developing the Stanford Industrial Park (now Stanford Research Park), Li introduced venture capital to fund high-tech startups in Taiwan. He also launched a campaign to lure overseas talent to establish companies in the new science park. One key recruit was Morris Chang, who later led the Industrial Technology Research Institute (ITRI) and founded Taiwan Semiconductor Manufacturing Company (TSMC).
The establishment of Hsinchu Science Park proved to be a masterstroke, creating a fertile ground for the growth of Taiwan’s semiconductor industry. After starting out primarily as a hub for PC component production and assembly, it evolved into a hub for semiconductor giants like UMC, TSMC, MediaTek, and ASE Group. By the 1990s, the park was home to over 400 tech firms, creating an unparalleled concentration of fabs, design houses, and R&D centers.
The success of the Hsinchu Science Park not only transformed Taiwan’s economy but also reshaped the global technology landscape. It provides a powerful example of the impact of visionary government leadership, strategic infrastructure investment, and the cultivation of a thriving innovation ecosystem can have on driving economic development.
