Refurbishing U.S. Manufacturing: Lessons from Taiwan's Science Parks and Industrial Zones
Advocate for exemptions from tariffs on Information and Communication Technology (ICT) goods: research organization's stance.
Staff writer, with CNA
In an effort to boost the U.S. manufacturing sector, Taiwan could lend a helping hand by sharing its expertise in establishing science parks and industrial zones. According to the Chung-Hua Institution for Economic Research (CIER), about 70% of Taiwan's exports to the U.S. are information and communications technology (ICT) products, which could be significantly affected by tariffs.
CIER president Lien Hsien-ming (連賢明) has recommended that Taiwan should pursue a tariff exemption for ICT products during negotiations with the U.S., as relocating production to the U.S. may not be feasible for Taiwanese suppliers due to the impact of tariffs.
Photo: Hsu Tzu-ling, Taipei Times
With the ongoing trade discussions between Taiwan and the U.S., it's crucial for Taiwan to avoid resorting to harsh retaliatory measures, given the size difference between the two economies. Lien expects Trump to impose a "reciprocal" tariff of 15 to 20 percent on goods made in Taiwan, accentuating the need for a swift resolution.
Taiwan can assist the U.S. in rebuilding its manufacturing sector by demonstrating its successful strategies in developing advanced technology hubs like Hsinchu Science Park. Although the US-Taiwan trade deficit has grown from $47.8 billion to $73.9 billion in the past year, there exists a wealth of potential for collaboration.
Yang Shu-fei (楊書菲), deputy head of CIER's Regional Development Study Center, emphasized the benefits that science parks and industrial zones can bring, including job creation, manufacturing upgrades, and opportunities to reduce the U.S. trade deficit.
Here are some key insights from Taiwan's success in developing science parks and industrial zones that the U.S. can consider:
Integration of Industry and Education
In the Hsinchu Science Park, top universities like National Tsing Hua University and National Yang Ming Chio Tung University are seamlessly integrated into the park. By nurturing such collaborations, a skilled workforce can emerge, ready to tackle tech innovations. Encouraging similar partnerships in the U.S. between educational institutions and industries can foster a workforce tailored to emerging technologies.
State-of-the-Art Infrastructure and Urban Planning
The well-planned infrastructure at Hsinchu Science Park includes advanced labs, office buildings, manufacturing facilities, and greenspaces that create a vibrant community. By implementing similar urban planning in U.S. industrial zones, enhanced quality of life and increased attraction of talent can lead to a more productive workforce.
Diverse Industry Clustering
Taiwan's science parks encompass a variety of high-tech industries, including semiconductor manufacturing and technology research. Encouraging diverse industry clustering in U.S. science parks can promote innovation and collaboration across different sectors.
Government Support and Investment
The Taiwanese government has been pivotal in supporting science parks through investments and policies that attract both foreign and domestic investment. In the U.S., strong government backing and proactive policies could similarly bolster investment in industrial zones, driving their growth and development.
Adaptation to Emerging Technologies
With its focus on cutting-edge technologies like 3nm semiconductor manufacturing, Taiwan demonstrates its ability to adapt to evolving tech trends. The U.S. can focus on integrating emerging technologies into its manufacturing sector by adopting similar strategies for lasting growth.
To effectively leverage these insights, the U.S. should focus on developing strategic partnerships, investing in modern infrastructure, promoting diverse industry clustering, offering government incentives, and focusing on emerging technologies. By implementing these strategies, the U.S. can breathe new life into its manufacturing sector, creating a strong foundation for sustained economic growth.
- In the light of U.S.-Taiwan trade negotiations, Taiwan could propose a tariff exemption for ICT products to help alleviate the impact of potential tariffs on exports, as suggested by CIER President Lien Hsien-ming.
- To assist the U.S. in rebuilding its manufacturing sector, Taiwan could share its strategies in developing advanced technology hubs like Hsinchu Science Park, as emphasized by CIER's deputy head Yang Shu-fei.
- To create a vibrant community in U.S. industrial zones, emulating the well-planned infrastructure at Hsinchu Science Park, including advanced labs, office buildings, manufacturing facilities, and greenspaces, can lead to an increased attraction of talent and enhanced quality of life, consequently fostering a more productive workforce.
- As technology continues to evolve, the U.S. can adopt strategies demonstrated by Taiwan, such as focusing on integrating emerging technologies into its manufacturing sector, to ensure lasting growth and a strong foundation in the industry.
