2016 ANNUAL REVIEW Ministry of Science and Technology

Ministry of Science and Technology 98 MOST already registered to occupy sites in park. Tenant firms had revenue of NT$507.4 billion in 2016, which represented growth of 3.10% compared with 2015. A. Park Firms Enjoy Steady Revenue Growth CTSP's tenant firms had revenue of NT$507.4 billion in 2016, and this figure was up by 3.10% compared with 2015. This growth was largely fueled by rising demand for smart handheld mobile devices, which caused orders to increase throughout the semiconductor industry supply chain, including the wafer fab and packaging and testing segments. As a consequence, 28 nm foundries in the park were operating at full capacity, and enjoyed growing sales. B. Outstanding Recruiting Results CTSP has successfully acquired numerous domestic and foreign high-tech tenant companies in recent years. As of the end of 2016, the park had approved occupancy by 189 companies, which included 38 optoelectronics firms, 70 precision machinery firms, 40 biotech firms, 8 integrated circuits firms, 16 computer and peripheral firms, 2 communications and digital content firm, and 15 other enterprises. Industry clusters are forming rapidly, and achieving a strong competitive advantage. In addition, CTSP has bolstered its R&D capabilities through the acquisition of 14 research organizations and incubation centers. Advanced research within CTSP is exemplified by the Institute for Information Industry's "Emerging Smart Technology Research Center," the Industrial Technology Research Institute's "Central Taiwan Industrial Innovation R&D Zone," and companies such as Allion Computer, Taiwan Mother Cosmo, Hsinnjy Nonwoven, Gain Science Technology, Taiwan Mother Cosmo, and CH Biotech. In addition, CH Biotech also broke ground on a new R&D laboratory in September 2016. Twenty more enterprises entered the park during 2016, of which six were biotech firms, five were precision machinery firms, two each were optoelectronics, integrated circuits, and computer and peripheral firms, and three were park enterprises. These companies plan to make new investments worth NT$3.94 billion. Furthermore, another seven companies increase their capital by approximately NT$1.6 billion. Newcomer enterprises in 2016 included nine startups, among which was Sunder Biomedical. Foreign enterprises making new investments in the park included the American firm Jabil Green Point and the French firm Balaisi Asia. It is evident that CTSP is enjoying robust growth, and it has also made a significant contribution to the Greater Taichung area's economic growth and employment in Taiwan as a whole. C. Expansion of The Taichung Park Following the initiation of a Taichung park expansion project in 2015, a prioritized flood detention pond also used for water conservation was completed at the start of this round of development. Furthermore, in order to accelerate implementation of the project as a whole, it is being conducting concurrently with construction work by a park firm (TSMC). Thanks to excellent communication and coordination between the two parties, difficulties concerning the construction interface and entry/exit routes have been overcome. The water conservation facility for the first stage of development was completed and inspected on the eve of the 2016 Lunar New Year holiday, and drainage, flood detention, and sedimentation facilities for the first stage of expansion have been constructed. The first stage of public construction work was completed in September 2016. TSMC has concurrently completed its first stage of plant expansion work, and has acquired production equipment and operating personnel. As a result, the expansion area has already been gradually providing employment opportunities and economic benefits, and will make a tangible contribution to the development of Taiwan's integrated circuits industry. The second stage of public construction work is proceeding rapidly, and CTSP is making use of the experience gained with concurrent private development during the first stage. It is expected that water conservation facilities, a tap water treatment and pressurization facility, and pipelines for the second stage of expansion will be completed during 2017, and will increase the water supply capacity in the expansion area. TSMC plans to implement plant construction concurrently with expansion work, and a second company (Giant Bicycles) plans to build its global headquarters in the area. This project is one of the examples of the Science Park Bureau working with park enterprises to fulfill its vision of a flourishing CTSP. D. Building A Smarter Park; Continuing Improvement of Services Various smart park projects have been underway since 2016, and a smart parking system has already been completed. In order to build the infrastructure for a smart park, CTSP has installed 163 wireless broadband hotspots and a system management server, which enables the public to use the Internet quickly and conveniently throughout the park. With regard to smart disaster prevention, CTSP has completed the establishment of an autonomous, intelligent water status system, and has installed sensors at key locations at the Huwei site to provide real-time monitoring of water levels. The information from these systems will be used to remind enterprises to adopt response measures aimed at minimizing losses in the event of possible flooding. Looking ahead to the future, even more smart facilities will be established at CTSP, such as a demand responsive transit system employing Ministry of Science and Technology 2016 ANNUAL REVIEW