"The group will apply for investment permission to establish a branch at the park in the near future," Gou explained at the signing ceremony attended by ROC Vice President Vincent Siew and Kaohsiung Mayor Chen Chu. Based on the principles of sustainable management, the group's future investment would focus on innovation, he added.
Foxconn, also known as Hon Hai in Taiwan, was formed after the group's parent company Hon Hai Precision Industry Co. Ltd. was founded by Gou in 1974. It is one of the world's major contract makers of electronic gadgets. According to Gou, the group would create 3,000 job opportunities for software engineers over five years, with the first 520 to be employed during the initial stage of construction that is scheduled to start by May 20 next year.
Gou also mentioned that Kaohsiung, which is Taiwan's biggest port city, has managed to integrate convenient access with high-level human resources. Moreover, production costs are much more competitive compared those with the northern part of the country, due to lower prices of commodities. "It is a very suitable location for software industry to set its roots," Gou said, pointing out that the software park is located on the former Chengkung site of the state-run CPC Corp., Taiwan, next to Kaohsiung Harbor.
Currently, the 7.9-hectare park has total investment amounting to US$400 million. The first phase of construction began in September 2001 and was completed this February. The Foxconn building will be among three others making up the second stage of development. Upon completion, the KSP will house companies that specialize in e-commerce and communication systems, as well as training centers and advanced industries.
Foxconn's Kaohsiung investment will primarily focus on four major fields, Gou pointed out. They include development of high-tech software that integrates advanced sensor and wireless-network technology for use in all kinds of surveillance operations, establishment of a platform for Linux-based operating systems and applied software, development of e-business operation platforms and embedded wireless-communication software.
Gou also hoped that the company's investment would attract more technological companies to come to Kaohsiung to form a cluster and stimulate the development of information and communication technology industries in southern Taiwan.
Addressing the ceremony, Siew reaffirmed that economic development and prosperity in Kaohsiung was one of the "i-Taiwan 12 projects" that were initiated by President Ma Ying-jeou and himself during the presidential campaign. "Contributing to the maturity of the Kaohsiung Software Park, in particular, is our main concern," he added.
The vice president further related that Foxconn's investment would be a tremendous boost to the growth of the "Innovation and Research Zone," an idea endorsed by the technology group, at the software park in Kaohsiung. "I believe that in the near future, the Kaohsiung Software Park, along with Taipei's Nankang Software Park, will become two core bases for expansion of digital content and software technology in Taiwan," Siew said, adding that this project would play the dual role of establishing a technology hub in southern Taiwan and balancing regional development.
Yiin, meanwhile, pointed out that in the past, the pillars of Kaohsiung's development were the steel and petrochemical industries. "Foxconn's southbound investment symbolizes the city's industrial transformation and will upgrade the level of technology industry here," he said.
Yiin noted that the Ministry of Economic Affairs has been dedicated to promoting international innovation and research centers in recent years. "Up to now, 585 foreign enterprises have been headquartered in Taiwan. Furthermore, 95 domestic research and development centers and another 38 overseas have been founded," he said, adding that Taiwanese firms have gained more competitiveness in the world as a result of the MOEA's initiatives.
The ministry's Export Processing Zone Administration, the governmental agency that is in charge of the KSP, said that since Foxconn announced its intention to invest in Kaohsiung early April, a host of software business operators had inquired about investment opportunities and the living environment surrounding the park.
Land rental within the park is only US$1.3 per square meter per month, the EPZA said, adding that companies willing to set up facilities within the park will also enjoy tax benefits and favorable land-rental agreements. The Kaohsiung City Government will also provide preferences and subsidies to the companies, the agency added.
Write to Edwin Hsiao at edwinhsiao@mail.gio.gov.tw