Central Taiwan Science Park posts high sales growth

(Image courtesy of Pexels)

(Image courtesy of Pexels)

TAIPEI (CNA) — The Central Taiwan Science Park (CTSP) posted the highest sales growth in the first eight months of this year among the major three industrial parks in the country, with the CTSP administration attributing the growth to efforts in developing high-end microchip technology.

Data compiled by the Directorate General of Budget, Accounting and Statistics (DGBAS) shows that sales generated by the CTSP totaled NT$446.4 billion (US$14.41 billion) in the period from January to August, up 32.7 percent from a year earlier.

The sales growth of the CTSP beat a 6.6 percent increase posted by the Hsinchu Science Park (HSP) in northern Taiwan and a 10.9 percent decline suffered by the Southern Taiwan Science Park (STSP), the data indicates.

Chen Ming-huang (陳銘煌), head of the Central Taiwan Science Park Bureau, said Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, has launched commercial production of chips made on its high-end 10 nanometer process and more advanced 7nm process in the CTSP.

As a result, TSMC has helped the CTSP generate a significant increase in revenue at a pace of more than 30 percent in the eight-month period.

According to TSMC, the 7nm process, in which mass production started in the first half of this year, accounted for 11 percent of its sales, valued at NT$260.35 billion, for the third quarter, while the 10nm process, mass production of which began last year, made up 6 percent of the revenue.

Since TSMC has anticipated that the 7nm process will weigh more in its product portfolio, Chen said CTSP sales are expected to continue to grow accordingly.

While TSMC is serving as a driver to CTSP sales growth, U.S.-based Micron Technology Corp.'s efforts to add capacity in its integrated circuit packaging and testing operations and Taiwan's flat panel maker AU Optronics Corp.'s production expansion have also contributed to the science park's revenue growth, Chen said.

In the first eight months, revenue posted by the three major science parks totaled NT$1.66 trillion, up 5.7 percent from a year earlier, the DGBAS said.

During the period, the HSP generated NT$695.2 billion, up 6.6 percent from a year earlier, making up 41.8 percent of the combined sales of the three science parks, the largest share among the three, the DGBAS added.

For its part, the STSP recorded NT$520 billion, down 10.9 percent from a year earlier, according to the DGBAS.

The DGBAS said the sales decline incurred by the STSP was because some buyers shifted their orders for chips made on the 16nm process to the CTSP.

In the three major science parks, the semiconductor industry posted NT$1.13 trillion in sales in the eight-month period, accounting for 68 percent of the total, as the major contributor to the sales growth of the three parks, the data shows.

The DGBAS said 843 firms were registered in the three science parks as of the end of August, up 22 from a year earlier, with the HSP having the largest number of 507, up 18 from a year earlier.