TAIPEI (Taiwan News) — Dozens of memorial events, speeches, and posts emerged this weekend on the third anniversary of the passing of former Taiwan President Lee Teng-hui (李登輝), including a Facebook post by Vice President Lai Ching-te (賴清德) attributing the country's role as the world's key chip hub partly to Lee's decisions.
Lee, a Cornell-trained economist, was first elected vice president by the "rubber-stamp" National Assembly in 1984 but rushed into the role of president in 1988 following the death of Chiang Ching-Kuo (蔣經國). Lee won the country's first direct popular presidential election in 1996 and stepped down at the end of his term in 2000.
During his presidency, Lee initiated democratic reforms and industrial upgrades between the 1980s and 1990s. His government had fended off the speculative attacks on the Taiwan dollar in the 1997 Asia Financial Crisis and the pressure of semiconductor companies moving plants to China after it embraced the World Trade Organization.
According to the book Chip War by Chris Miller, the Taiwanese government in the 1980s worked relentlessly to get its foot in the door of chip manufacturing. It provided incentives for Taiwanese semiconductor talent in the U.S. to work in Taiwan and even start companies, with a strong backing of money from the government and technology transfer from the country's top applied technology research institute.
In the 1990s, some semiconductor companies deemed strategically important, including Taiwan Semiconductor Manufacturing Company (TSMC), were "strongly advised to exercise caution" in their investment plans in China under Lee's "no haste, be patient (戒急用忍)" policy guidelines, though the semiconductor talent drain was unstoppable. Luckily, the most advanced semiconductor manufacturing process stayed in Taiwan.
The policy, once frowned upon by Taiwanese entrepreneurs, was later viewed as visionary, as suggested in 2020 by Robert Tsao (曹興誠), founder of United Microelectronics Corporation (UMC), TSMC's primary Taiwanese rival. UMC built a chip manufacturing company in China in the 1990s and some 20 years later, Tsao reportedly said, "I wish we (UMC) had never built a chip plant in China if we could start over."
In Sunday's post, Lai said he had sought advice from Lee multiple times when he was serving as Tainan mayor (2010-2017), calling Lee's political and economic views progressive. "Lee began using computers for his statistics research work in the 1950s and continued to keep himself updated on the latest technologies throughout his political career. During our conversations, Lee kept reminding me of how severe international industrial competition is and that the government should leverage its considerable semiconductor strengths to achieve the country's digital transformation and prosperity," Lai's post read.
"In hindsight, Lee was right about the future of technology and business, and his insights have been put in the country's roadmap, ranging from the development of artificial intelligence, Internet of Things (IoTs), and other digital technology applications," Lai added. With collective efforts and Lee's vision, Lai concluded, the government will continue to increase the budget for science and technology as well as enhance industrial competitiveness.
