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Hsinchu Science Park plays a crucial role when discussing Taiwan’s artificial intelligence (AI) research and semiconductor industry. Founded in the early 1980s by the government with the vision of creating a “Taiwanese Silicon Valley,” the park was set up to enable both research and manufacturing to take place in one area. Semiconductor and electronics firms, National Tsing Hua University and National Yang Ming Chiao Tung University, as well as the Industrial Technology Research Institute (ITRI), a government-funded research organization that has been at the forefront of semiconductor technology development and commercialization, are all situated within the Hsinchu Science Park. It is considered the only location in the world where a large-scale “semiconductor supply chain” exists within a single city.

First, the park manages every stage of semiconductor development, from design to manufacturing. This is due to the proximity of semiconductor design firms such as TSMC and MediaTek, back-end processing companies like ASE, and other businesses that provide components, materials, and equipment, all within an hour’s drive. National Tsing Hua University and National Yang Ming Chiao Tung University provide skilled personnel to these companies and engage in collaborative research and development initiatives. ITRI evaluates emerging technologies and assists startups when potential is recognized. Notably, since TSMC holds a near-monopoly on producing “AI semiconductors,” which have experienced increased demand recently, Taiwan’s AI research is progressing rapidly, with the Hsinchu Science Park at its core.

At present, more than 900 businesses operate within the park, providing jobs for over 170,000 individuals. In the previous year, the combined sales of the companies located there amounted to 47 trillion South Korean won.

Studies indicate that the “one-stop administrative model” has been crucial to the achievements of the Hsinchu Science Park. A specialized organization known as the National Science Park Administration manages all processes, including luring businesses, assigning land, issuing construction permits, and conducting environmental reviews, in a unified procedure. Businesses are not required to deal with various government agencies; rather, the administration collaborates with the appropriate departments to obtain all approvals simultaneously.