Wise Research, under the Wise Consulting Group (Headquarters: Taipei City, Republic of China), a firm specializing in business and market trends in Taiwan, has released the latest insight report titled 'Advanced Manufacturing × S-Corridor × Emerging Tech: Southern Science Park and Industrial Park Clusters' as part of its 'Major Industrial Park Development Series.' This report comprehensively analyzes the Southern Science Park (SSP), a core manufacturing hub responsible for mass-producing cutting-edge semiconductor processes.

Against the backdrop of President Lai Qingde's 'AI Island' vision and the National Science and Technology Council's (NSTC) 'Greater Southern Silicon Valley' initiative, the report explains, based on proprietary data, the three key functions driving SSP's historic rapid growth and the critical importance for Japanese companies to shift toward a 'local integration and accompanying support' model.

Report Highlights: Rapid Growth of the Southern Science Park and Its Three Functions

1. Historically Surpasses Combined Output of Hsinchu and Central Parks, Claims Top Spot Among Three Major Science Parks

The scale expansion of SSP is remarkable. In 2025, the total output across all zones reached NT$2.97 trillion (approximately ¥15 trillion), a 34.26% increase from the previous year. This figure not only ranks first among Taiwan's three major science parks (Hsinchu, Central, and Southern) but also marks the first time in history that SSP has surpassed the combined total output of the Hsinchu Science Park (HSP) and the Central Science Park (CSP).

(Figure 1) The 'Greater Southern S-Corridor' and the vertically and horizontally integrated ecosystem of next-generation technology clusters, being built across southern Taiwan from Chiayi to Pingtung (Source: Wise Research)

2. Vertical and Horizontal Integration of Advanced Manufacturing and the Greater Southern S-Corridor

SSP has formed a massive ecosystem encompassing everything from 'core manufacturing hubs' for cutting-edge processes to robust supply chain belts.

○ Advanced Manufacturing: In addition to TSMC's mass production of '3nm and 5nm' processes and advanced packaging in the Tainan zone, the construction of a '2nm ultra-advanced process fab' in the Kaohsiung Nanzih zone is progressing rapidly, aiming for mass production by the end of 2025. Furthermore, in the Chiayi zone, two dedicated factories for the advanced packaging technology 'CoWoS,' essential for AI semiconductors, are under construction with mass production targeted for 2028.

○ S-Corridor Supply Chain: In the Kaohsiung Luzhu zone, companies such as German Merck, U.S.-based Entegris, and Winbond Electronics have established a supply network for high-performance materials and 5G components that are critical for yield rates. In the Kaohsiung Qiaotou zone, ASE (Advanced Semiconductor Engineering), Foxconn (Hon Hai), and Phison Electronics have set up bases, establishing hubs for back-end processes, EVs, and AIoT.

3. Expansion from Semiconductors into Emerging Tech Fields: 'Robotics, Drones, and Aerospace'

The government is promoting the utilization of areas around SSP not only for semiconductors but also as a base for nurturing and producing new industries built on AI innovation.

○ Robotics and Drones: By integrating various parks from Chiayi to Pingtung with the Southern Branch of the Industrial Technology Research Institute (ITRI), the region is advancing the development of R&D and mass production systems for drones and robots. Eighteen flight test sites are being established for military and industrial drones.

○ Aerospace and Advanced Materials: Following the selection of Taiwan's first national rocket launch site (in Jiupeng Village, Manzhou Township, Pingtung County), the Pingtung zone is seeing the clustering of aerospace industries and the construction of factories for advanced liquid metal cooling materials for space and semiconductor applications.

Strategic Insight for Management: 'Local Integration and Accompanying Support' for the Greater Southern Ecosystem

In the manufacturing lines for 2nm and 3nm processes and advanced packaging, rapid response to fine-tuned troubleshooting and automation module adjustments is essential. The report advises Japanese companies to reconsider their previous model of sending personnel from Taipei or Hsinchu on a project basis. Instead, they should establish engineering hubs, applied R&D labs, and analytical quality centers on the front lines in the Tainan and Kaohsiung areas. Thoroughly providing technical support and accompanying customers in their mass production sites and the development of emerging technologies (robotics and drones) is directly linked to securing long-term orders and maintaining market share.

▼ Full text of this analysis report is available here

https://www.ys-consulting.com.tw/column/129614.html

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  • Source: PR TIMES
  • Category: Survey
  • Organizations: TSMC