Reference News Network, October 27 report - According to the website of Singapore's "Lianhe Zaobao" on October 26, the Taiwan authorities are transplanting the "heart" of the Hsinchu Science Park to the United States, which may not adapt well and self-erode.

The report said that the Taiwan authorities are helping the United States build a science park in the "Taiwan model," and have promised that enterprises in the semiconductor ecosystem will invest in the United States. In the foreseeable future, there is bound to be a wave of high-tech industries investing in the United States. But can the long-term "de-industrialized" American soil replicate the miracle of the Taiwanese semiconductor industry? Some pessimists see it as a "money pit," and some industry players fear they will not adapt well; more analysis warns that moving the most competitive semiconductor industry out of Taiwan will squeeze internal investment momentum and trigger an unemployment wave.

To obtain lower tariff rates from the United States, the Taiwan authorities proposed expanding investments in the United States with the "Taiwan model," aiming to export the experience of the most competitive Hsinchu Science Park to build a complete semiconductor cluster in the United States. The vice president of the Taiwan region, Hsiao Bi-khim, stated that it is not only TSMC, but also other parts of the entire ecosystem, including suppliers, designers, and other chip manufacturers, will invest in the United States.

The Hsinchu Science Park is the cradle of Taiwan's high-tech industry, possessing a complete industrial chain from integrated circuit design, chip manufacturing, to packaging and testing.

The report said that after the news of the Taiwan authorities assisting the United States in replicating the science park and building a complete semiconductor cluster was released, the Hsinchu Science Park was hit first, with mixed feelings among local residents. A taxi driver surnamed Chen frankly said: "Now people with high salaries inside the park don't feel anything, but people outside the park are worried. The place will decline in the next few years. After five years, maybe one-third of the people inside the park will go to the United States, and those with high salaries will almost all be taken away, even moving their families, and the real estate prices here will collapse, and business will definitely be affected."

Shih Chin-tai, former president of the Taiwan Institute of Industrial Research, said: "A factory can move away, but an ecological system is hard to move."

Senior industry consultant Chen Tzu-yang pointed out that U.S. customers allow TSMC to raise prices, keeping TSMC's gross profit margin above 53%. However, he does not deny that U.S. tariffs have already worsened the situation for traditional industries, and the investment of highly profitable semiconductor industries in the United States indeed affects Taiwan's economic growth momentum.

In mid-September, the Modern Finance Forum held a symposium titled "How Can Taiwan Break Through the Tariff Impact." Wang Chien-cheng, vice president of the Taiwan Institute of Economic Research, pointed out at the symposium that the tariffs imposed by Trump have already seriously hurt Taiwan. In the future, cars and agricultural products will inevitably open up the market, and there will be another wave of high-tech industries investing in the United States.

Wang Chien-cheng believes that Trump hopes the United States can complete a full upstream and downstream operation, which has a great impact on Taiwan.

Professor Wu Ta-ren from the Department of Economics at National Central University, who participated in the same symposium, pointed out that the production cost in the United States is high, and the labor market lacks flexibility. Investing in the semiconductor industry in the United States is not optimistic. If the entire ecosystem moves to the United States, the environment is unsuitable, and it may eventually become a "money pit."

Wu Ta-ren pointed out that the United States wants countries around the world to invest in manufacturing in the United States. At that time, the demand for manpower will increase significantly. It is estimated that an engineer's annual salary will be $200,000, and it may rise to $300,000 to $400,000. Manufacturers' investment costs will increase, which may face significant risks.

He said that more seriously, in recent years, Taiwan's investments have relied on the semiconductor industry. If the semiconductor supply chain is transferred to the United States, private investment will inevitably fall. TSMC's investment of $16.5 billion in the United States may crowd out its investments in Taiwan. The problem Taiwan faces is where the next economic momentum will come from.

Original text: https://www.toutiao.com/article/7565756856364843574/

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