The Power of Proximity: The Structural Advantages of Taiwan’s Science Parks

Core Insights - Taiwan's science parks represent a highly concentrated and efficient industrial ecosystem, particularly in semiconductor and electronics manufacturing, providing a competitive advantage through geographic proximity [1][9] Group 1: Ecosystem Integration - Hsinchu Science Park, established in 1980, pioneered a clustering model for chip production, offering integrated infrastructure such as water, gas, power, logistics, housing, and security [2] - The close proximity of manufacturing facilities, research labs, and suppliers allows for rapid problem-solving and collaboration, significantly reducing time for design iterations and component sourcing [4][5] Group 2: Knowledge Flow and Talent Circulation - The geographic concentration facilitates the movement of skilled workers and tacit knowledge, fostering informal networks that enhance technical support and collaboration among firms [6] - Strong partnerships with universities ensure a steady talent pipeline and rapid commercialization of research, creating a high-tech ecosystem comparable to Silicon Valley [7] Group 3: Government Support and Infrastructure - Central government administration provides one-stop services for environmental, safety, labor, and tax issues, reducing bureaucratic friction and ensuring priority access to resources [8] - Continued government investments in new parks to support TSMC's expansion highlight a commitment to maintaining the advantages of clustering [8] Group 4: Economic Impact - Taiwan's three science parks host nearly a thousand companies employing over 300,000 people, generating NT$2.74 trillion (approximately US$90.6 billion) in revenue in the first half of 2025 [9]