SCIENCE ADVISER'S VISIT HIGHLIGHTS TAIWAN'S HIGH

C O N F I D E N T I A L AIT TAIPEI 003782

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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

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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

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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

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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
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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
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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
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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