The government has resumed the deliberation of the much-delayed Longtan Science Park expansion project in Taoyuan, which could pave the way for the Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to build five new fabrication plants to produce advanced chips there.
The project, proposed by the Hsinchu Science Park Administration, planned to expand the science park in Longtan District (龍潭) by about 158.59 hectares, with 80.66 hectares designated for businesses in the park, according to information disclosed at a public hearing in July 2023.
The administration had planned to allow TSMC to build its fabs for 2-nanometer or smaller chips at the science park this year, but residents opposed the idea, as 88 percent of the land to be expropriated is privately owned. Some even formed a self-help group and protested at the Presidential Office and the Executive Yuan.
Photo courtesy of Taoyuan City Councilor Hsu Yu-shu
As a result, TSMC in October 2023 said it would not pursue plans to establish manufacturing facilities in the science park, opting instead to invest in advanced chip manufacturing in Kaohsiung and other cities.
Nevertheless, the administration and the Taoyuan City Government continued to communicate with residents near Longtan Science Park, given high-tech firms’ needs to expand manufacturing facilities.
To win residents’ support, the administration reduced the planned development area to 89.63 hectares in 2024. The area was expanded slightly to 104.19 hectares after some residents who had previously opposed the project reportedly changed their stance.
Of the adjusted development area, 46 hectares would be designated for the use by businesses in the park.
Changes to the development area’s size were discussed at two public hearings as well.
A source familiar with the matter said that after the setback in Taoyuan, TSMC built fabs in Tainan, Kaohsiung and Chiayi County.
TSMC’s investments have boosted the economy in those areas, leading some residents in Longtan to have second thoughts about having the world’s largest advanced chipmaker as a neighbor, the source said.
“Some said that, without TSMC, their land would only be good for growing tea leaves,” the source added.
The National Science and Technology Council (NSTC) said the new development plan proposed by the administration could create about 6,200 jobs, generating an annual output of about NT$310 billion (US$9.60 billion).
The NSTC said it submitted its project proposal to the Executive Yuan in June, and the proposal is now being reviewed by the National Development Council.
If approved, environmental impact assessments, land-use changes and land acquisition would follow, with related work expected to be completed by the end of 2029, it said.
Park infrastructure construction is estimated to begin in 2030, it added.
Water and power needs have been preliminarily assessed by relevant agencies, while the administration and the city government would continue to work on compensation and relocation measures to protect residents’ rights, the NSTC said.
Additional reporting by Ou Hsiang-yi
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