New Kaohsiung industrial park to bolster semiconductor sector: Lai

Kaohsiung, Sept. 21 (CNA) Construction began Monday on Kaohsiung's Baipu Industrial Park, which President Lai Ching-te (賴清德) said would strengthen Taiwan's semiconductor ecosystem, balance north-south development, and boost the country's global competitiveness.

Speaking at the groundbreaking ceremony, Lai said the nearly 89-hectare park would create more than 4,000 jobs and generate about NT$300 billion (US$9.35 billion) in annual production value, marking a new milestone for Taiwan's semiconductor industry.

With artificial intelligence applications and high-performance computing expanding rapidly worldwide, advanced integrated circuit (IC) assembly services have become increasingly important to the semiconductor industry's competitiveness, Lai said.

The park will draw on cooperation among the Ministry of Economic Affairs, the Kaohsiung City Government and major semiconductor companies, including Taiwan Semiconductor Manufacturing Co. (TSMC), the president said.

Earlier this month, TSMC announced plans to develop a 3-hectare site in the industrial park, with two buildings housing modular facilities that can be reconfigured as technology evolves.

The site will include small cleanrooms and laboratories for testing and joint development of advanced assembly technologies, equipment and materials, as well as a training center for highly skilled specialists in semiconductor processes and equipment, according to TSMC.

According to Kaohsiung's Economic Development Bureau, construction of two campuses at Baipu Industrial Park, including two facilities planned by TSMC, is scheduled for completion in the fourth quarter of 2029. The park's entire infrastructure is expected to be completed in 2031, the bureau said.

Lai said the park aims to become Taiwan's first semiconductor base focused on developing, testing and certifying critical semiconductor equipment and raw materials.

The development is expected to shorten the time needed to introduce new technologies and help Taiwanese companies establish a foothold in the global supply chain, he said.

Once completed, Baipu Industrial Park is expected to complement an IC assembly and testing cluster at Kaohsiung's Renwu Industrial Park and another cluster focused on critical raw materials and other key components at the city's Ciaotou Science Park, Lai said.

The park is also expected to complete southern Taiwan's semiconductor S-corridor project, with Kaohsiung at its core, Lai said. The S-corridor project links science parks and technology industrial parks in Chiayi, Tainan, Kaohsiung and Pingtung in southern Taiwan.

The president added that Kaohsiung's strong metal processing and precision machinery industries are expected to enhance the project's value.

Addressing concerns about water shortages, Lai said the government has launched the "pearl string project" to connect reservoirs through Taiwan via interregional pipelines to boost a reserve water capacity.

He also said facilities such as water purification and desalination plants will be developed, providing greater flexibility in water management.

With the project nearing completion, the previous practice of using water trucks to maintain supplies at science parks will no longer be necessary, Lai said.

On electricity consumption, Lai said state-owned Taiwan Power Co. has agreed to a plan to build an electricity distribution network in Baipu Industrial Park to ensure a stable power supply.

(By Chang Si-lien, Lee Hsin Yin and Frances Huang)

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