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Why Taipei Makes a Case for Being Close to Taiwan’s Semiconductor Ecosystem

Taipei’s semiconductor-location case centers on R&D, talent and access to a wider Taiwan network—not on having every manufacturing function inside the city.

By TheFinanceBase Team 3 min read
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Taipei’s case is not that the city contains Taiwan’s largest chip-fabrication base. It is that companies can use it as an R&D and corporate hub connected to a wider network of semiconductor suppliers, manufacturers and research activity across Taiwan. That was the location argument Robert Lo, then executive director of the Invest Taipei Office, made in an April 2022 EE Times interview.

Why might a company establish a base in Taipei?

Lo’s argument rests on three linked advantages: access to research and development, skilled talent, and a position within a connected industrial cluster serving a larger Asian market. In his account, proximity helps foreign companies work with local businesses, suppliers and partners on cooperation, product development and research tied to market verification.

This is a regional-network argument, not a claim that every semiconductor function is located in Taipei City. A company considering the city would need to identify which parts of its work depend on Taipei-based staff or relationships and which require regular contact with production sites elsewhere.

How does Taipei fit into Taiwan’s semiconductor geography?

The 2022 interview described Taipei as a high-value R&D and corporate center, with manufacturing and component supply distributed across nearby cities and science parks. The following locations are the interview’s descriptions, not a verified current directory:

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Location Role described in the 2022 interview
Neihu Science Park One of the Taipei locations said to have attracted domestic and foreign R&D centers.
Nangang Software Park One of the Taipei locations said to have attracted domestic and foreign R&D centers.
Nangang Bioinnovation Park One of the Taipei locations said to have attracted domestic and foreign R&D centers.
New Taipei City, Keelung and Taoyuan Nearby satellite locations described as having manufacturing and component supply.
Hsinchu and Tainan science parks Locations the interview associated with local supplier capacity.

The practical distinction is between a base for corporate and R&D work and direct proximity to manufacturing or suppliers. A company whose work relies on frequent factory-floor access may weigh those nodes differently from one focused on research, partnerships or regional business development. The interview’s geography and company-location claims date to 2022; confirm current facilities, offices and supplier availability before using them in a location plan.

What evidence supports the ecosystem case?

The interview’s investment statistic

EE Times reported that around 16% of Taiwan’s greenfield foreign direct investment projects in 2019–20 were in electronics, attributing the figure to GlobalData. The original GlobalData publication was not identified, so this is a secondary-source attribution reported by EE Times, not independently verified original data. It describes projects in 2019–20, not a current investment share. EE Times, April 2022.

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A later example of industry coordination

SEMI reported that SEMICON Taiwan 2025 saw the launch of the 3DIC Advanced Manufacturing Alliance, co-chaired by TSMC and ASE and joined by 37 companies. This is a dated example of collaboration in Taiwan’s semiconductor industry. It supports the broader point that companies coordinate across the ecosystem, but it does not confirm the current location of Taipei offices or suppliers named in the 2022 interview. SEMI, 2025.

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How should a company compare Taipei with another base?

The available sources do not provide a like-for-like comparison or establish that Taipei is the best location on every measure. A location decision should test the company’s specific operating needs rather than treat “close to the ecosystem” as a complete answer.

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  • R&D talent and institutions: Identify the roles and expertise needed, and verify whether the relevant teams and institutions are accessible from the proposed base.
  • Manufacturing and supplier access: Map essential production sites and suppliers, then assess how often staff need to be on site and how practical that travel is.
  • Operating costs: Compare office, hiring and other operating costs across candidate locations using current, comparable figures; the cited sources do not supply those comparisons.
  • Customers and travel: Consider where customers and partners are located and how easily the team can reach them.
  • Supply-chain and geopolitical exposure: Assess disruption risks relevant to the company’s operations instead of assuming geographic proximity eliminates them.

Lo’s summary of Taipei’s pitch was a “complete industrial cluster, excellent talent in Taipei, and aiming for the larger Asian market.” That is the perspective of a city investment official making the case for Taipei, rather than an independent ranking of semiconductor locations.

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