Bridging the Soft and Hard Indnstries

by

Chun Y. Chang

National Endowed-Chair Professor and President of National Chiao Tung University, Hsinchu, Taiwan

Foreign Associate, National Academy of Engineering, USA

July 14,2006

The Joint 14th Annual PBFEA and 2006 Annual FeAT Conference第十四屆亞太財務經濟及會計會議暨 2006 台灣財務工程學會

In the last three decades, Taiwan has been very successful in making an economy miracle. Which is a successful story about an economy transformation from labor intensive into hi-tech intensive economy. But it is mainly due to the “hard-industry” which means that manufacturing of high-tech products such as semi-conductor chips, personal computers, and flat panel display which have shared more than 70% in the world market and also due to it’s successful policy of globalization. 90% of the goods are exporting. However, nowadays, we are facing a more serious challenges and competition mainly from the rise of Chinese economy and others like Korea, Japan etc., The way to conquer these problems, I think is that another transformation of our economy from “hard” industries into “soft” industries is needed but still based on the strong basis and capability of the “hard”.The appropriate approaches are, 　　 More globalization: from “made in Taiwan” to “made by Taiwan”　　 More innovation: Education reform.　　 More “Software Concept” than “Hardware Concept”

Prologue

The Incubator of Taiwan Hi-Tech Industries

1964 NCTU has established the 1st Semiconductor

Research center/Informatics, 1st communication,

Laser, I.C., Computer TV Transmitter

1970’s ． CMOS project lead by (Led by D. H. Hu / NCTU)

． Acer (Led by Stan Shih/NCTU)

． 1st LCD Lab at NCTU

1980 UMC

1987 TSMC

1990 LCD Industry / AU, Chi-Mei and Others

建立台灣最早的 IT 講座

美國式自由開放的交通大學建立台灣最早的 IT 講座

Source: 日本經濟新聞 Japan Economic News

NCTU established the earliest IT program in Taiwan

The Liberal American style University: NCTU

NCTU contribution to IEEE Journals

年學校 2004 2003 2002 2001 2000 1999 1998 1997 1996

交通大學(National Chiao-Tung niversity ）

127 76 74 89 103 92 102 87 88

台灣大學(National Taiwan University)

112 65 62 78 81 69 61 57 64

MIT(Massachusetts Insititute of Technology)

24 77 71 91 70 64 79 94 77

Stanford University 78 61 74 52 75 78 62 76 84

UCLA(University of California at Los Angeles)

98 48 65 70 64 65 66 48 42

U.C.Berkeley(University of California at Berkeley)

58 41 52 60 46 64 49 54 83

University of Illinois at Urbana-champaign 48 62 59 72 60 76 69 86 70

In 1964, PM Chiang Ching-Kuo visited NCTU,who decided to develop Taiwan Hi-Tech Industries台灣發展高科技的起點， 1964 年蔣經國來訪交大

蔣經國先生參觀交大半導體實驗室的鋁合金爐，左起張俊彥、張瑞夫、蔣經國與張去疑合影

美國國家工程院首次頒給張俊彥為國家院士我國國旗首次飄揚在美國國家學術院大廳

The national flag of ROC Taiwan is flying in the great hall of the National Academies, U.S.A. since Prof. Chang was conferred the foreign associate membership for the first time from Taiwan.

“Without Prof. Chang’s Leadership, Taiwanese Electronics Industries could not be so flourish, not only to the economy of Taiwan but also to the world’’

Chih Tang Sah-National Academy of Engineering U.S.

A.The inventor of CMOS

What’s the Next?

Nikkei Electronics 2005.12.5

國外報導台灣成功的國家型計畫－ from hard to soft(1)

2003~2006年各國 ISSCC發表論文數統計表2003 2004 2005 2006

Country Papers country Paper Country Papers Country Papers

USA 80 USA 82 USA 93 USA 111

Japan 37 Japan 44 Japan 45 Japan 43

Korea 19 Korea 17 Korea 17 Taiwan 20

Netherlands 13 Netherlands 11 Taiwan 15 Korea 15

Germany 10 Germany 8 Netherlands 10 Germany 15

Italy 5 Belgium 7 Switzerland 10 Netherlands 8

Canada 4 Taiwan 6 Italy 8 Italy 8

Switzerland 4 Switzerland 5 Canada 7 Switzerland 4

France 4 Italy 4 France 6 Canada 4

Belgium 3 France 3 Germany 4 China 4

Taiwan 3 Canada 2 Belgium 4 France 3

China 2 Ireland 2 China 4 Belgium 3

Ireland 1 Finland 1 Ireland 4 Ireland 0

Finland 0 China 0 Finland 1 Finland 0

IEEE Solid State circuit Conference

Nikkei Electronics 2005.12.5

Use Manufacturing Strength to Promote Design, Products and Brands

Manufacturing

Product

Current Status:

Unstable Reverse Triangle

Vision: The Brilliant Diamond Structure

Strategy

Brand

From hard to Soft (2)Taiwan Brand Strateay

OEM ODM OBM

ExportServices

EducationI T Services

HubHealth care

ICT

ServicesFinanceLogisticsHealth

Digi GamesSight Seeing

PolicyTaxationHR/Edu

R/DGlobalizationAcquisition

Acer Asus BenQ

Top 5 N.B. Brands2004~2006 年全球前 5 大 NB 品牌出貨量

2006 2005 2004

出貨量 市佔暨排名 出貨量 市佔暨排名 出貨量 市佔暨排名戴爾Dell

14500 18.60% 11000 18.30% 7929 16.2%(1)

惠普HP

12500 16.000% 9700~10000 16.30% 7442 15.2%(2)

宏碁Acer

11000 14.10% 6500~6800 10.90% 3933 8%(5)

東芝Toshiba

8500~9000 11.20% 6800~7000 11.50% 5826 11.9%(3)

新聯想Lenovo

8000~8500 10.60% 5800~6000 9.60% 4318 8.8%(4)

總計 55000 70.50% 40000 66.60% 29448 60.1%

其他 23000 29.50% 20000 33.40% 19585 39.9%

總計 78000 100% 6000 100% 49033 100%

資料來源： IDC 、台 NB 廠、電子時報整理 (2005/12)

From hard to Soft (3) The Embryo Model

HW HW HW HW

S/W

SW

S/W

HW

HW

From hard to Soft (4)-Value Chain & Ecological Chains

歐洲三蘭國家之發展策略與定位Taiwan/Finland/Holland/Ireland

RD Design Engr Mfg Logistics Marketing Sales Service

　　　　　　　　　　 Service Weight 　　　　　　　　　　　　　　　　　　　　　　　　

資料來源：台灣產業的發展與未來 (2005) ，台灣經濟研究院 ppt 檔，頁 44 。

創意中心Innovation

研發中心R/D 製造中心

Mfg

運籌中心Logistics

國際通路Channels

Finland Ireland Holland

產業乙

產業甲ValueAdded

品牌Brand

From Hard to Soft (4)： Innovation of Taiwan

各主要國家歷年在美國核准之發明專利被引證次數 (Forward citation)

Year 2000 2001 2002 2003

U.S.A. 272419 163413 60842 7047

Japan 79995 50739 21501 2638

Germany 19221 12444 4944 598

Taiwan 13728 9434 3964 520

France 7482 4524 1742 173

England 9172 5580 2177 266

From hard to Soft(4): Innovation

Epilogue• A Brilliant Success in Hard Industries • Future Prospect is Based on “Hard” to Develop Soft Industries,

Hard → Soft , and “Hard + Soft”

C. f. : India: Soft →Hard (Soft+Hard, Products, mfg, ……)• Innovative Education

Logistics, Hubs

ICT Services for Better Life

( Ubiquitous ICT)

Health Care

Finance W/ICT

Better Culture, Better Environment, Ecologically

Globalization

With their round dance the electrons spin踩者圓舞曲的舞步，電子婆娑迴旋chrysalises of that which abides,縈繞如蛹the inmost cocoons核心之繭which do not open of their own accord開啟奔放並非出於自我的不羈but are of that which abides.而是源於生命本然的悸動

There it is not a matter of hatching out.無關乎羽化成蝶There it is a matter of tending and protecting破繭而出是溫柔的關照呵護the metamorphoses of the inmost將沈潛心底的deeper-down swaying,激盪律動the innermost playing of women in dance.幻化為女子深情曼妙的舞姿

--Harry Martinson 哈瑞 馬丁森 (1904-1978)(1974 Nobel Laureate in Literature)

The Electrons 電子之舞

From Dikter om ljus och mörker (Poems of Light and Darkness)

-- 劉美君譯

Epilogue –Beauty of electron=Electronics

　　逍　遙　遊 –

莊子

「鵬之徙於南冥也，

水擊三千里，搏扶搖而上者九萬里，

去以六月息者也。」

　　又

「至人無已，神人無功，聖人無名」