Hsinchu City
Cradle of Taiwan semiconductors: 160,000+ workers, 500+ firms, NT$1.51T turnover (2024). TSMC 2nm Fab 20 tool-in began April 2024. By 2026, production at scale while R&D emphasis potentially displaces some manufacturing.
The cradle of Taiwan's semiconductor industry—Hsinchu Science Park (founded 1980) birthed the cluster that now produces 60% of global foundry revenue. TSMC, UMC, and MediaTek all headquarter within the park's 1,471 hectares, employing 160,000+ workers across 500+ enterprises. The 2024 turnover hit NT$1.51T (6.66% YoY growth), with trade volume reaching NT$3.59T (44% increase).
Geography and policy created this concentration. Hsinchu's proximity to Taipei enabled talent recruitment while providing cheaper land. The government's strategic investment attracted returning engineers from American tech companies—the famous "brain return" that seeded entrepreneurship. Today Hsinchu Science Park contributes 18.7% of Taiwan's GDP (up from 14.3% in 2013).
TSMC's 2nm Fab 20 began tool-in during April 2024 in the Baoshan expansion area. Construction continues despite concerns about water availability, earthquake risk, and geopolitical tensions. The "silicon shield" concentrates precisely here—a vulnerability that expansion to Kaohsiung and Tainan partially addresses.
2026 trajectory: 2nm production at full scale; preliminary approval for additional development phases granted in 2024. Hsinchu competes with TSMC's new Arizona and Japan facilities while retaining advanced process development. The park's maturity may shift it from manufacturing to R&D emphasis.