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Sun Yun-suan: the architect of Taiwan’s science and technology industry

July 31, 2009
Premier Sun Yun-suan is briefed by Stan Shih, former chairman and chief executive officer of Acer Group, on the situation of the electronics industry at the 1982 Taiwan Electronics Show. (Courtesy of Sun Yun-suan Foundation)
Sun Yun-suan once said he had six children: his wife gave birth to the first four, the fifth was Taipower, and the sixth was Industrial Technology Research Institute. As the father of ITRI, Sun advanced the science and technology development of Taiwan.

In 1964, the World Bank recommended Sun, then president of Taipower, to operate the power system in Nigeria, because Taiwan’s power system was the best among power systems around the world that had received financial aid from the United States. Shouldering the task of reviving the power network and establishing friendly relations between Taiwan and Nigeria, Sun worked there for three years. Within this period, he increased the power supply by 87 percent. In the Nigerian power company, a popular saying went around like this: “When Sun is gone, the sun will be gone, too.”

Near the end of his three-year contract, the Nigerian company was willing to double Sun’s pay. The World Bank also offered him a well-paid job developing power systems in other countries. However, Sun decided to return to Taiwan, as President Chiang Kei-shek had summoned him.

Shortly after returning, he was appointed minister of transportation and communications, a task that no one in his family wanted him to assume as it switched his career from engineer to government official. However, President Chiang believed the government needed to recruit new faces to bring about reform.

The first measure Sun took at the MOTC was to install blacktop roads in every village, no matter how remote the area was. Later on, he mapped out six transportation projects in the Ten Major Construction Projects (national infrastructure projects in the 1970s).

In June 1969, he became minister of economic affairs. Among all the economic battles he had to fight, elevating Taiwan’s industries from labor-intensive to high-tech predominated. He believed setting up the Industrial Technology Research Institute and manufacturing integrated circuits would help the country significantly.

In 1969 and 1970, Sun visited the Korea Institute of Science and Technology, where a group of American-trained Koreans was bringing in the latest technology in electronics, chemistry and textiles. He discovered that the institute was successful precisely because it was not a government organization. It was able to double or triple civil servants’ pay to recruit the best talent from abroad. Sun started preparations for a similar institute in Taiwan.

At the beginning of 1972, a proposal to establish the ITRI was submitted to the Legislative Yuan for review. It caused a great uproar as the institute required government funding to set up but was a nongovernmental foundation. Sun patiently spent time to convince legislators one by one to support the act. It took over a year to get the bill passed, and then only by a small margin.

Over time, ITRI became a cradle for Taiwan’s high-tech industry and a training ground for top-notch engineers. It also put Taiwan at the head of Asia’s four little dragons. Sun is justly known as the father of ITRI.

In 1974, Sun proposed investing about US$10 million to start making integrated circuits in Taiwan. A few experienced American-trained experts formed the Technical Advisor Committee to discuss how to obtain the technology. In 1976, the first group of 19 young Taiwan engineers went to the United States to learn integrated circuit know-how from RCA. When they returned a year later, a factory was ready to greet them.

Stan Shih, former chairman and chief executive officer of Acer Group, said in an interview in 2001 that with foresight, one can invest limited amounts of resources in the initial stages of a new industry but receive substantial returns later. “The achievements of today’s hi-tech sector, including integrated circuits and semiconductors, are the results of a decision made 25 to 30 years ago,” said Shih, referring to Sun’s pivotal investment decision.

During Sun’s tenure as minister of economic affairs, the country went through the ROC’s withdrawal from the United Nations in 1971, the severance of diplomatic relations with Japan in 1972, the oil crisis of 1973, and the death of President Chiang Kei-shek in 1975. However, amidst all the turmoil, he managed to launch the Ten Major Construction Projects, establish the ITRI and, with the help of Li Kuo-ting, prepare for the establishment of the Hsinchu Science and Technology Park.

In 1978, Sun was elevated to his peak position as civil servant—premier. In the same year, the United States broke off official relations with the ROC. In the wake of this diplomatic setback, Sun remained cool and calm to steer the course of the country.

The next year, the Cabinet mapped out the Science and Technology Development Plan listing eight sectors as national development priorities, including information technology, automation, and biotechnology. The Hsinchu Science and Technology Park started to operate in the same year. By 1980, the Ten Major Construction Projects had been completed, laying a solid foundation for Taiwan’s economic miracle.

In February 1984, one night when he was sitting up late to prepare a report to the Legislative Yuan, Sun had a stroke. No longer able to serve the government, he stepped down as premier. However, he remained optimistic and worked at rehabilitation, just like any other patient. Most of his remaining days were spent with his family, till Feb. 15, 2006 when he passed away in Taipei.

Although Sun was minister of transportation and communications for two years, minister of economic affairs for nine years, and premier for six years, after his career as a high-ranking official he owned no house, land, car or jewelry. High-ranking officials have to report their assets to the Control Yuan every year. “It is so easy to do your report,” said Kitty Deng, Sun’s secretary. “All you have is a little savings,” Deng told Sun.

Sun was impartial when dealing with business interests. Among all his achievements with Taipower, the science and technology sector, and the advancement of the nation’s economy, his integrity is his greatest legacy.

Write to Jean Yueh at yueh@mail.gio.gov.tw

 

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