[Regional Economic Analysis] Taiwan's High-Tech Hub Features Manufacturing x Logistics x ESG. Insight Report on Central Taiwan Science Park (CTSP), Where Advanced Semiconductors and Precision Machinery Converge, Released

Wiser Research, under Wiser Consulting Group (Headquarters: Taipei, Taiwan, R.O.C.), which is well-versed in Taiwan's business and market trends, has released the latest insight report, "Manufacturing x Logistics x ESG: Central Taiwan Science Park Industrial Park Cluster," a core hub driving the real economy in central Taiwan, as part of its "Major Industrial Park Development Series."

Central Taiwan Science Park (CTSP) was accelerated in its construction as an alternative hub to the expansion difficulties of Hsinchu Science Park (HSP), and as a connecting point in the "North-Central-South High-Tech Corridor" that runs vertically along western Taiwan. This report uniquely analyzes the internal structure of the Taichung area, which has dramatically advanced from a traditional industry focus to a "comprehensive high-tech hub," and proposes the next market entry strategies that Japanese companies should target.

(Figure 1) Location and Positioning of Central Taiwan Science Park

Report Highlights (Three Mega Trends Driving CTSP)

1. Double Engine: Fusion of "Cutting-Edge Semiconductors" x "Precision Machinery"

The greatest appeal of CTSP is the fusion of Taiwan's two major flagship industries within the area. TSMC has established a key base in CTSP and is promoting the expansion plans for its cutting-edge factories, such as 2nm and 1.4nm processes. For Japanese suppliers, establishing a support system right next to the world's largest customer means minimizing logistics and communication costs and risks. Furthermore, the foothills of Dadu Mountain are a cluster of world-class machine tools and precision machinery, known as a "60-kilometer golden valley that influences the world." Japan's "FA control" and "robotics technology" create a powerful complementary relationship with Taichung's "implementation capabilities."

2. "Dual Sea and Air Ports" Supporting the Supply Chain and Geographical Advantage

Taichung, connecting the northern "HSP (IC design & R&D)" and the southern "STSP (cutting-edge manufacturing)," boasts Taiwan's highest logistics potential. Having dual ports, "Taichung Port," a base for importing special chemicals and gases essential for semiconductor manufacturing, and "Taichung International Airport," directly connected to emergency air transport, are extremely advantageous conditions for Japanese companies. Using the High-Speed Rail (HSR), access to Taipei and Kaohsiung is possible within an hour.

3. Ultimate Circular Economy: Growing Business Opportunities in ESG Compliance

In November 2024, TSMC launched the "Taichung Zero Waste Center (零廢中心)" in CTSP with an investment of over 3.5 billion New Taiwan Dollars. In collaboration with partner companies, they have built an advanced system for recycling waste liquid and sludge into electronic-grade recycled materials (such as IPA) for reuse in the manufacturing process. As reducing environmental impact becomes an urgent task, enormous collaboration opportunities are expanding for Japanese companies with excellent environmental and recycling technologies.

<Overview of the 5 Major Parks Constituting Central Taiwan Science Park>

(Figure 2) Central Taiwan Science Park is organically networked by 5 parks with distinct characteristics.

Hints for Management: Entry Strategy into the CTSP Ecosystem

As a strategy for Japanese companies to enter the CTSP ecosystem, we propose a partner strategy of "integrating essential solutions (element technologies and core components)" into the "strong double engine (Taiwanese companies)" rather than "selling finished products (goods)." Fully utilizing the robust sea and air infrastructure and the world's most advanced ESG environment is the shortest route to entering the global AI and semiconductor supply chain.

▼ Full text of this analysis report is available here

https://www.ys-consulting.com.tw/column/129476.html

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