It is a small, flat, and It is a small, flat, and crowded world —crowded world — Challenges and Challenges and opportunitiesopportunities for win - win cooperation for win - win cooperation

C. L. Liu 劉炯朗National Tsing Hua University

Hsinchu, Taiwan

HappinessHappiness

To Create and to Distribute Happiness

Around the World

Every time it rains, it rains, pennies from heaven.

Economy : GoalEconomy : Goal

Creation and Distribution of Wealth

Economy : SettingEconomy : Setting

A small world with a large population

and a lot of talents

Flattening the Playing FieldFlattening the Playing Field

The Big Bang of the Information The Big Bang of the Information EraEra

Forces that came from the Information

Revolution that began 60 years ago.

Before the Big Bang of the Before the Big Bang of the Information EraInformation Era

More Fundamental Forces

Common Languages Education Transportation

Common LanguagesCommon Languages

EducationEducation

TransportationTransportation

Commercial Jet Airplane Service Cargo Container

The Big Bang of the Information The Big Bang of the Information EraEra

Common Languages Education Transportation Computation Communication

Fast, Small, Inexpensive, and Versatile InformationProcessing Machines

Web 0.0Web 0.0

Fast, Inexpensive, AccessibleAnytime/Anywhere InformationTransmission Networks

Web 1.0Web 1.0

Computer Networks 1965

Sharing of Computing Power Distribution of Computing Power Sharing of Information

Web 1.0Web 1.0Any computer is connected to any computer

Anything could be linked to anything

Weaving The WEB, 1991

Timothy John Berners-Lee

http://info.cern.ch/

URI : Universal Resource Identifiers HTTP : Hypertext Transfer Protocol HTML : Hypertext Markup Language

Web 1.0Web 1.0

Browser

Mosaic,  Netscape, Explorer,  Firefox

Anyone can view any piece of information

Web 1.0Web 1.0

Search Engine

Ask, and it will be given to you; seek, and you will find;knock, and it will be opened to you. -  Mathew 7:7

Anyone can locate any piece of information

Web 1.0Web 1.0

Free to Contribute. Free to Share.

Free : Unrestricted and Unobstructed

Free : No Charge

Web 2.0Web 2.0

of the people, by the people, for the people - Abraham Lincoln

Free and Open Source Software

GNU (GNU’s Not Unix) Project

Linux Kernel

Linus TorvaldsRichard Stallman

Web 2.0Web 2.0

Wikipedia

Jimmy Wales

Web 2.0Web 2.0

YouTube

Web 2.0Web 2.0

Flattening the Playing FieldFlattening the Playing Field

1. Collapse of the Berlin Wall2. Netscape3. Workflow Software4. Open Sourcing5. Outsourcing6. Offshoring7. Supply chaining8. Insourcing9. In-forming10. “The Steriods” – personal digital devices

Economy : GoalEconomy : Goal

Creation and Distribution of Wealth

Economy : Creation of WealthEconomy : Creation of Wealth

Labor Force = Wealth Natural Resources = Wealth Technology = Wealth

Labor Force = WealthLabor Force = Wealth

Agriculture Based Manufacture Based

Labor Force = WealthLabor Force = Wealth

Large Population Steam Engine:

First Industrial Revolution

Labor Force Wealth

Reduction

Economy : Creation of WealthEconomy : Creation of Wealth

Labor Force = Wealth Natural Resources = Wealth Technology = Wealth

Natural Resources = WealthNatural Resources = Wealth

Gold, Coal, Iron, Oil,.…

WealthNatural Resources

Depletion

Economy : Creation of WealthEconomy : Creation of Wealth

Labor Force = Wealth Natural Resources = Wealth Technology = Wealth

Technology = WealthTechnology = Wealth

Aerospace, Communication, Information, Medical,…. Fashion, Music, Literature,….

Technology = WealthTechnology = Wealth

Knowledge Talents

WealthTechnology

Mutual Enhancement

EducationEducation TechnologyTechnology

EconomyEconomy

Building A High Tech IndustryBuilding A High Tech Industry

Technology Human Resources Capital Technological Infrastructure Non-Technological Infrastructure Incentives A High Tech Mentality

The U.S. ExampleThe U.S. Example

Silicon Valley Stanford Industrial Park (1951) Hewlett – Packard (1953) Shockley Semiconductor (1956) Fairchild Semiconductor (1957) Intel (1968) Apple (1970) Synopsys (1986) Google (1998)

The U.S. ExampleThe U.S. Example

Innovation is King

2008 Index of Silicon Valley, Published by Joint Venture :Silicon Valley Network

The U.S. ExampleThe U.S. Example

The U.S. ExampleThe U.S. Example

Venture Capital is the White Knight

Capital Management

Silicon Valley VC investment:

2006 Q1~Q3 : $5.3 billion

2007 Q1~Q3 : $5.9 billion

2008 Index of Silicon Valley, Published by Joint Venture :Silicon Valley Network

The U.S. ExampleThe U.S. Example

The U.S. ExampleThe U.S. Example

Universities is the Mother

Inventions Talents

– Stanford University– University of California Berkeley– University of California at Santa Cruz– Santa Clara University– San Jose State University– MIT, CMU, UIUC

The Taiwan ExampleThe Taiwan Example

Population: 23 million Area: 13,822 sq mi GDP: USD15,758

農業經濟 製造業經濟 高科技產業經濟白米香蕉養殖

塑膠紡織鞋子電扇

腳踏車運動器材

傘

個人電腦積體電路製作

測試封裝面板

記憶體

H. C. Fang , President of ITRI; Wen-Yuan Pan, Advisor; Yun-suan Sun,

Minister of Economic Affairs

Vision: 1976 marks the origin of Vision: 1976 marks the origin of Taiwan semiconductor industryTaiwan semiconductor industry

Hsinchu Science ParkHsinchu Science Park

Established in 1980 380 High Tech companies Yearly revenue USD40 billion

Technology Development and Technology Development and TransferTransfer Industrial Technological Research Institute (ITRI) in Hsinchu

– Founded 30 years ago in Hsinchu– 6193 employees (812 Ph.D.; 3,070 M. S.; 2,011

B.S.)– Annual budget: USD500 million

Higher EducationHigher Education

Number of Universities:160

Number of Students Entering Universities each year :100,000

Tuition: USD 2,000 – 4,000 per year

Science & Technology Graduates

# g

rad

ua

tes

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

95 96 97 98 99 00 01 02 03 04

Taiwan United States

Taiwanese workforce ~ 40,000 new engineers

each year Business Week 2005

World LeadersWorld Leaders

#1 Foundry (TSMC, UMC)

#1 PC Motherboard Producer

#1 Packaging and Test

#2 Chipset Supplier (MediaTek, VIA, SiS)

#3 PC Manufacturer (Acer)

#6 DRAM Supplier (Nanya, ProMos & Powerchip)

Taiwan High Speed Rail

Building Infrastructure Building Infrastructure

Taipei 101

Building Infrastructure Building Infrastructure

大學念什麼科系？

畢業之後做什麼？

工作態度是什麼？

電機，醫學

碩士，園區

努力，緊守崗位

一流的科技人才

哲學，文學，藝術，音樂，體育的人才呢？

高科技產業高科技產業

提高效率

降低成本

增加良率

及時供應

一流的高科技生產線

文化創意，服務觀光等其他產業呢？

勞 力 資 金 品 質 創 新 品 牌

農業經濟製造業經濟

高科技產業經濟

勞力密集 商品 Commodity

小麥，玉米，內衣，球鞋

資金成本供需競爭

商品市場 商品市場 Commodity Commodity MarketMarket

勞力密集商品 Commodity

小麥，玉米，內衣，球鞋，電腦，面板， DRAM

資金密集

Standardization！

資金成本供需競爭

商品市場 商品市場 Commodity Commodity MarketMarket

本大利小

Digital ContentIndustry

““ Two Trillion/Twin Stars”Two Trillion/Twin Stars”Taiwan’s Industrial Development PlansTaiwan’s Industrial Development Plans

BiotechnologyIndustry

DisplayIndustry

SemiconductorIndustry

"Two Trillion" refers to the semiconductor and display industries, each ofwhich is expected to reach shipment value of NT$ one trillion by 2006 Source :MOEA

Commodity Non-Commodity

PCDRAMTFT-LCDSolar Panel

Fabrication - TSMC, UMC

Fabless ODM - Qualcomm, Broadcomm, MediaTek

System Integrator - iPhone, iPod

size, capital,

early entry

technology,innovation

軟體工業

數位內容

生醫科技

文化創意

服務觀光

Labor Force Wealth

Reduction

The China ExampleThe China Example

History: – Xia Dynasty: 2100 – 1600 B.C.– Qin Dynasty: 221 - 206 B.C.– Republic of China: 1911– People’s Republic of China: 1949

Population : 1.3 billion Area: 9.6 million sq mi

The China ExampleThe China Example

Population: 1.3 billion

(India:1.1 billion, USA: 300 million)

A large working force: an economic power

A large consumer market: an attractive force, a driving force

Economic PowerEconomic Power

Source: Wikipedia

U.S. Dollar to Chinese Yuan Exchange Rate

Economic PowerEconomic Power

Building Infrastructure Building Infrastructure

USD 225 billion vs 35 billion for India (2007)

Attractive PowerAttractive Power

Suzhou Industrial Parks:China-Singapore Suzhou Industrial Park

3,000 companies Revenue: USD 56.7 billion Investment: USD 30.4 billion

Area: 70 km2 Suzhou New District Industrial Park

71

5 Years 2-3 Years

Industry Strategy Symposium (ISS) SanYa 2007, Source: ITRS,DIR,SMIC,SEMI, October 2007

Diminishing the Technology GapDiminishing the Technology Gap

Driving PowerDriving Power

Mobile Phone– World total 2 billion

Technology– GPRS (General Packet Radio Service)– TD-CDMA (Time Division Code Division Multiple

Access)

– TD-SCDMA (Time Division Synchronous Code Division Multiple Access)

The Hong Kong ExampleThe Hong Kong Example

British Territory: 1842 Transfer of Sovereignty: 1997

Area: 11.04 sq mi

Population : 7 million

GDP: USD 28,982

The Hong Kong ExampleThe Hong Kong Example

Free Markets: ranked as the most free economy in the world (Index of Economic Freedom), placed first in Economic Freedom of the World Report Low Taxation: no sales tax, no capital gains tax, no VAT, no inheritance tax, maximum salary tax 20%, maximum profit tax 16 % Government Non-intervention British Common Law Tradition

The Hong Kong ExampleThe Hong Kong Example

The Hong Kong ExampleThe Hong Kong Example

Hong Kong Science & Technology Parks

The Hong Kong ExampleThe Hong Kong Example

Hong Kong Shenzhen Megalopolis

Population: 8.27 million

Area: 2,020 km2

Foreign Investment: USD 30 billion

WealthNatural Resources

Depletion

The Dutch DiseaseThe Dutch Disease

Booming Sector

Lagging Sector

The Dutch DiseaseThe Dutch Disease

Booming Sector: Oil, Gas, Gold, Copper

Lagging Sector: Manufacturing, Agriculture Non-traded Sector: Service Diversification Development of New Talents Wage Currency Exchange Rate Revenue Volatility Social Conflicts Effective and Responsible Government

United Arab EmiratesUnited Arab Emirates

Population: 4.5 million Area: 32,278 sq mi GDP: USD 42,275

Oil ReservesOil Reserves

Source: Wikipedia

The Dubai ExampleThe Dubai Example

Population: 2.2 millionArea: 1,584 sq mi 497 sq mi (metro)

Oil and Natural Gas Revenue: 2% of that of UAE 6% of total revenue

Oil and Natural Gas Reserve: UAE : 100 years Dubai: 20 years

The Dubai ExampleThe Dubai Example

The Macau ExampleThe Macau Example

Macau:

Portuguese settlers: 1557

Portuguese Colony: 1887

Hand over to PRC: 1999

Area 11.04 sq mi

Population : 500,000

$3,937$5,651

$6,121$7,470

$10,889

$3,907

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

US$ (M$)

2003 2004 2005 2006 2007 2008 Q1

Economy of MacauEconomy of MacauGDP of Macau ($M)

Gambling Revenue ($M)

$17,805$22,634

$24,369$28,857

$36,357

$0

$10,000

$20,000

$30,000

$40,000US$ (M$)

2003 2004 2005 2006 2007

Economy of MacauEconomy of Macau

2008 2009

Total Revenue $6.5 ?

Gambling $4.2 = $12.0 x 35%

Others $2.3

Budget $4.0 $5.6

Surplus $2.5 ?

$B (USD)

Economy of MacauEconomy of Macau

2008 : Surplus $2.5 B (USD)

One time cash rebate to every permanent resident: USD650

Yearly cash gift to every senior permanent resident: USD460

(was USD230 in 2007)

2009 : (Announcement)

One time cash rebate to every permanent resident: at least USD650

The Macau ExampleThe Macau Example

Diversification: – Exhibition and Convention

– Resort and Recreation

– Arts and Culture

Development of New Talents: Education

Wage: Up

Revenue Volatility: Competition for Gaming Revenue from other Places in the Region

Social Issues

Hong Kong-Zhuhai-Macau Bridge Hong Kong-Zhuhai-Macau Bridge

18 miles (29 kilometers)USD 2~3.7 billion

The World is FlatThe World is Flat

Fairer CompetitionFairer Competition

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PACIFIC OCEAN

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The World is SmallThe World is Small

Closer CooperationCloser Cooperation

The World is BeautifulThe World is Beautiful

Sharing and CaringSharing and CaringHealthy and HarmoniousHealthy and HarmoniousProsperous and Peaceful Prosperous and Peaceful

It is a small worldIt is a small world

人人常歡笑 不要眼淚掉時時懷希望 不必心裡跳在那人世間 相助共濟應知人間小得俏

世界真細小小小小得真奇妙妙妙實在真係細世界嬌小而妙俏

It's a world of laughter, a world of tears;

It's a world of hopes and a world of fears.

There's so much that we share

That it's time we're aware,

It's a small world after all.

It's a small world after all,

It's a small world after all,

It's a small world after all,

It's a small, small world.