VZCZCXYZ0003
RR RUEHWEB

DE RUEHIN #3782/01 3110355
ZNY CCCCC ZZH
R 070355Z NOV 06
FM AIT TAIPEI
TO RUEHC/SECSTATE WASHDC 2934
INFO RUEHBJ/AMEMBASSY BEIJING 5899
RUEHUL/AMEMBASSY SEOUL 8225
RUEHKO/AMEMBASSY TOKYO 8187

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 
 
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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 
--------------------------------------------- --------- 
 
¶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