2016 ANNUAL REVIEW Ministry of Science and Technology

Ministry of Science and Technology 96 MOST The Southern Taiwan Science Park (STSP), which includes Tainan and Kaohsiung sites, has successfully stimulated industrial development in southern Taiwan since its establishment in 1997. Twenty-one more firms (including four startups) were approved to occupy the park's Tainan and Kaohsiung sites in 2016, and the park now has a cumulative total of 210 tenant companies, of which 185 have already occupied sites and begun operations. The revenue earned by park companies during the year totaled NT$829.6 billion, which represented growth of 16% compared with 2015. As of the end of 2016, 576.7 hectares of land in the park had been leased out, and the leasing rate had reached 88.92%. The establishment of this science park has boosted the regional economy, stimulated peripheral industries, and promoted cultural development. MOST hopes that Taiwan's science parks will lift Taiwan's product and technological standards, and catalyze the formation of numerous high-tech industry clusters. STSP is expected to gradually develop into a multifunctional park featuring both R&D and production, and serve as production site for existing high-tech industries. In addition, to ensure that the park's technological personnel and other employees settle and work in the area, the peripheral area has been designated a special district, which will contain high-quality, low-density residential communities suitable for high-tech personnel. MOST hopes that STSP and the adjacent special zone will form a high- tech garden city combining production, research, and living. STSP's industrial development features include the following: A. Gradual Transformation into An Innovative, Entrepreneurial Park In conjunction with MOST's "From IP to IPO" (FITI) program, STSP has established links with the entrepreneurship resources of relevant agencies and local governments, the equipment of R&D organizations, and the resources of park companies, and provides prototype production, small-scale trial production, funding infusions, and entrepreneurship assistance services, as well as the "Southern Taiwan Innovative Startup Service Platform". From 2013 to the end of 2016, STSP has helped 91 teams occupied startup spaces in the park, of which 32 teams have been promoted to the top-10 best startups among their cohorts in the FITI program, 16 teams obtained NT$2 million in startup funds, and 37 teams completed company registration (with total capital of NT$919.5 million); 6 startups have become tenant firms, and 8 startups have occupied the park's incubation center. B. The World’s Foremost Dedicated Foundry Site STSP currently contains 18 semiconductor plants. The Taiwan Semiconductor Manufacturing Co. (TSMC) has invested a cumulative total of more than NT$500 billion in the Tainan site, and its No. 14 plant is currently using sub-20 nm advanced semiconductor processes (the No. 14 plant's phase I-VII and advanced packaging plant are in mass production). The United Microelectronics Corp. (UMC) has invested a cumulative total of more than NT$240 billion in the Tainan site, and phase I-VI of its No. 12A plant are all in mass production. With these two leading foundries both continuing to boost their investment, the semiconductor industry will continue to develop in STSP, maintaining STSP's role as a key international wafer foundry site. C. Taiwan’s Most Complete Optoelectronic Industry Cluster Mildex Optical has built a new touch-control panel plant at the Kaohsiung site, and Innolux has invested NT$80 billion in construction of a low- temperature polysilicon (LTPS) panel plant in addition to its existing 8.5 th -generation and new 8.6 th panel plants. The Kaohsiung site has become the location of an advanced panel industry cluster, and new panel plants are expected to add 3,000 jobs. D. Biotech/Device Equipment Industry Cluster Goes International STSP has successfully established an integrated biotech/medical device industry cluster service platform establishing linkage between industry, academia, research, and medical organizations, and performing KOL (key opinion leader) marketing, which has established an innovative medical device development environment. STSP has further initiated a funding program fostering clinical innovation and has established an experience sharing and diagnostic hotline aimed at boosting the reliability and market share of medical devices. As of the end of 2016, the medical device cluster contained 51 firms, which had made investments totaling NT$9.6 billion. The cluster's output has grown steadily during recent years, and revenue reached NT$2.71 billion in 2016, which represented an increase of 35% compared with the NT$2.01 billion figure for 2015. Four STSP firms have passed the Ministry of Health and Welfare's artificial tooth root inspection registration, 29 firms have passed GMP (Good Manufacturing Practice) certification, six firms have passed qualifications Southern Taiwan Science Park Ⅱ Ministry of Science and Technology 2016 ANNUAL REVIEW