SCIENCE ADVISER'S VISIT HIGHLIGHTS TAIWAN'S HIGH

C O N F I D E N T I A L AIT TAIPEI 003782 SIPDIS SIPDIS DEPT PASS OES/SCT GEORGE ATKINSON E.O. 12958: DECL: 10/18/2012 TAGS: PREL ECON EDU CH TW SUBJECT: SCIENCE ADVISER'S VISIT HIGHLIGHTS TAIWAN'S HIGH TECH SECTOR Classified By: AIT Econ Chief Daniel K. Moore for reasons 1.4(b/d) ¶1. (U) SUMMARY. Science Adviser to the Secretary of State Dr. George H. Atkinson visited Taiwan from October 12-13. Atkinson briefly toured the TSMC semiconductor factory and the Industrial Technology Research Institute (ITRI) and met with Academia Sinica President Lee Yuan-tseh and his successor Wong Chi-huey. Taiwan excels in semiconductor manufacture and is actively developing nanotechnology and biotechnology. Atkinson explored scientific exchange possibilities for Taiwan with the U.S. and neighboring countries. END SUMMARY. TSMC: FABLESS SYSTEM PIONEER SIPDIS -------------- ¶2. (U) At the invitation of Academia Sinica President Lee Yuan-tseh, Dr. George H. Atkinson, Science Adviser to the Secretary of State, spent a day in Taiwan visiting technology SIPDIS centers such as Taiwan Semi-conductor Manufacturing Company (TSMC),and ITRI. TSMC is the world's fourth largest semi-conductor manufacturer. It makes most of its chips in Hsinchu, northern Taiwan. SMC pioneered the foundry system of chip-making, where chips are based on designs made elsewhere. This spurred the growth of "fabless" chip companies who design their own chips but outsource their manufacturing. ¶3. (U) TSMC has successfully attracted highly trained experts from the U.S. to work at its offices in Taiwan by paying high salaries, relaxing rules about language (knowledge of Chinese not required) and providing an easy transition to returnees, including help with local and U.S. taxes. Although much of its talent comes from the U.S., TSMC is also located next to two academic institutions that provide a source of local talent. TSMC AND MAINLAND INVESTMENT SIPDIS -------------- . ¶4. (C) TSMC staff said the PRC was lagging about 5-10 years behind Taiwan in semiconductor development. TSMC would like to make 0.18 micron wafers in China. Although the Ministry of Economic Affairs (MOEA) had tacitly approved, the National Security Council and Mainland Affairs Council have blocked the plan. Currently, Taiwan officials only permit TSMC to make 0.25 micron and older technologies in the PRC. TSMC staff said it was quite difficult to bring PRC talent to work in Taiwan. ITRI: AN EXAMPLE OF LINKAGE OF GOVERNMENT AND INDUSTRY -------------- -------------- ¶5. (U) At the Industrial Technology Research Institute (ITRI) Atkinson met with President Lee John-see. ITRI staff displayed some of the inventions that were in the process of being marketed. ITRI seeks to focus on the practical application of science and has strengthened links between government, academia and industry. ITRI staff also expressed concern that meeting manufacturing needs from industry had overshadowed innovative work in its labs. ITRI staff also indicated they have a wide range of international collaboration with academic institutions such as UC Berkeley and Carnegie Mellon University in areas of telecommunications, nanotechnology and biosciences. ACADEMIA SINICA: LEE HANDS OVER TO WONG -------------- ¶6. (U) Atkinson next called on Dr. Lee Yuan-tseh, outgoing President of Academia Sinica, and his successor Wong Chi-huey. Wong a former researcher with the Scripps Institute at La Jolla, California, formally took over October ¶19. Former President Lee will continue to do research at Academia Sinica. Lee said that future research in Academia Sinica will focus on biotechnology and the linkage between chemistry and biology and that genomics was an area with big potential (Wong is the current director of the genomics lab). Atkinson said that Taiwan, together with Japan and Singapore, are three scientific powerhouses. Lee said that there was not much scientific exchange between Taiwan and Singapore and said that Singapore had a problem keeping scientific talent on account of its relatively poor living environment. Lee added that the lack of diplomatic relations prevents Taiwan from having a normal scientific relationship with many countries. TECH SECTOR ¶7. (C) Atkinson suggested partnership programs with the National Institute of Health (NIH) or academic institutions in order to provide a bridge between the U.S. and Taiwan researchers. Lee said that because Academia Sinica is government funded, its researchers cannot accept any U.S. pay and cannot be the principal investigator in a joint research project. However, Academia Sinica welcomes joint research programs with U.S. institutions. Lee said some areas they are focusing on are renewable energy, avian flu research and stem cell research. He said Taiwan had two biolevel 4 laboratories and that one of those labs had collaborated with Fort Detrick on anthrax research and had developed an anthrax antibodies detection system which was shared with the U.S. ¶8. (U) Atkinson also visited the Biomedical Science Institute and met its Director Dr. Y.T. Chen. Chen said that they are developing new drugs that dissolve blood clots. Chen said that biotech industry in Taiwan was still in its infancy. He added that treating infectious diseases and cancer were top priorities and research institutions needed more qualified scientists. COMMENT -------------- ¶9. (U) Atkinson's visit served to highlight Taiwan's position as a leader in science and technology, particularly nanotechnology and biotechnology. There are great opportunities for regional partnerships and scientific exchanges. Although Taiwan already has many collaborative efforts among academia and industry, its focus has been on the practical applications of science. Fostering exchanges among researchers could help stimulate the innovative side of Taiwan science. END COMMENT 10.(U) This cable was cleared by Dr. Atkinson. WANG