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Taiwan's Economy

Hsinchu Science Park

How Taiwan built Hsinchu Science Park in 1980 near research institutes and universities, attracting returning engineers and creating a tech cluster.

Hsinchu Science Park opened in 1980.

Location

Near ITRI and top universities like National Tsing Hua and National Chiao Tung.

Design

  • Infrastructure, tax incentives and simple approvals for tech firms.
  • Housing and schools for engineers and families.

Returning talent

Many Taiwanese engineers working in Silicon Valley returned to Hsinchu, bringing skills and networks, a classic case of brain circulation.

Companies

TSMC, UMC, MediaTek and many others are based there.

Cluster effects

Suppliers, talent and knowledge concentrated in one area, creating agglomeration benefits.

Comparison with India

India’s tech parks in Bengaluru and elsewhere had similar goals, though India’s cluster focused more on software than hardware.

The returning engineer

A Taiwanese engineer who worked at a US chip firm returns in the 1990s to join a startup in Hsinchu, bringing design expertise.

Thinking science parks succeed automatically

Hsinchu combined research institutes, talent and incentives.

Key takeaways
  • Hsinchu Science Park opened in 1980.
  • It sits near ITRI and top universities.
  • Returning engineers brought skills from Silicon Valley.
  • It hosts TSMC, MediaTek and many others.
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