Future Industries of Taichung

Words by Industrial Development & Investment Promotion
Committee of Taichung City
Translated by Naomi Lai

1. Precision Machinery
Niche Market: Strengths in the machinery sector can become a powerful competitive point in industries such as manufacturing. In addition, it can also help increase the speed of a region's overall industrial advancement. Promotion of the machinery industry is an important element in the policies and strategies of the government's industrial development plans, particularly as Taichung stands as a major industrial force in Taiwan with machinery as a leading industry.

The advantages of precision machinery:
1. Well-Structured Industry: Industrial parks in Taichung include the Taichung Industrial Park, Central Taiwan Science Park, Taichung City Precision Machinery Industrial Park, and Taichung Trade and Technology Park (planned). These industrial zones, combined with neighboring industrial areas, together form the "Dadu Mt. Technology Corridor".

2. Convenient Transportation Network:
Land--National Freeway No. 1 and No. 2, High Speed Rail, Taiwan Rail, ZhongZhang Expressway (Rt. 74), Provincial Highway No. 63

Sea--Taichung Port

Air--Taichung Ching Chuan Kang (CCK) Airport

3. Upstream and Downstream Cooperation: Alliances with machinery companies in the surrounding areas help form a more integrated system of development, increasing in competitiveness.

4. Roles in Development: The Taichung City Precision Machinery Industrial Park offers not only a safe investment environment and a bedrock for the sustainable development of local machinery businesses, but also serves as a framework for alliances among these same businesses. By consolidating companies together in one area, the Taichung City Precision Machinery Industrial Park is able to boost cooperation between companies, lower management costs, increase competitive advantages and integrate related businesses for the whole industry.

In the 1980s, the Hsinchu Science Park jump-started Taiwan's semiconductor business. Today, the Dadu Mt. Technology Corridor links the Central Taiwan Science Park, Taichung Industrial Park and the Taichung City Precision Machinery Industrial Park, and utilizes Taichung's transportation advantages. This in turn has the potential to create a new free-trade zone that attracts foreign investors and propells Taiwan's precision machinery industry to new heights.

II. Conventions and Exhibitions
Niche Market: As industrial and cultural clusters form around the Taichung and Dadu Mt. Technology Corridor region, Taichung will become increasingly visible. Promoting the city on the international stage will become increasingly important and thereby create a growing market for major conventions and exhibitions.

1. Exhibition Facilities: Besides the Taichung World Trade Center, there is a convention and exhibition center at the Taichung City Precision Machinery Industrial Park with space for about 1,000 booths, plus a larger exhibition center in the Shuinan Trade Park with space for 3,000-5,000 booths.

2. Convenient local transportation networks.

3. Close ties between precision machinery businesses and the science park's high-tech companies.

4. With the opening of direct flights between China and Taiwan, Taichung has become the closest Taiwan city to southeastern China, making it a strategic hub for business operations.

urthermore, the merging of Taichung city and county will result in improved air, sea and rail transport advantages that will help to greatly reduce transportation costs in the area.

5. Various five-star hotels, historical sites and scenic areas in the city and surrounding area ensure visitors enjoy comfortable accommodations and many recreational opportunities.

III. Developing Medical Tourism with Biomedical Cosmeceutical Industries
Niche Market: As life expectancy grows, medical, medical cosmeceutical and biomedical industries are becoming one of the fastest-growing business sectors and a focus for development in many nations.

The medical market in Taiwan is relatively small, with the export-based medical industry experiencing 20% annual growth. As the center of for precision machinery in Taiwan, Taichung has the advantage of being able to easily cross over into precision medical equipment manufacturing in order to help improve Taiwan's current industrial position.

In the home health care market, Taichung has the potential to become a world-class medical and information platform with its mild climate, low costs, convenient living environment and advanced medical institutes.

The Asian medical tourism market has experienced rapid growth in recent years. According to statistics, an international medical tourist can generate about four to six times the total spending of an average normal tourist. Globally, medical tourism will generate US$40 billion by 2010.

Taichung's various medical centers, universities and clinics, together with its five-star hotels, motels, boutiques, malls, shopping areas, night markets and travel destinations, make the city an ideal location for medical tourism.

IV. Culture and Creative Industry
Niche Market: Throughout Taiwan's history, Taichung had always occupied an important position in the areas of culture, industry and design. Since the Second World War, Taichung has been a center for various manufacturing industries, generating items such as light industrial products, mechanical products and machine tools. In recent years, with the government's promotion, the Dadu Mt. Technology Corridor has been formed. At the same time, Taichung Mayor Jason Hu has promoted a "Cultural, Economic, International Metropolis" as the main framework for his policies, branding Taichung as a cultural city. With this comes the need for service industries. Below are the results of these efforts:

1. Cultural Facilities: Cultural facilities allow for cultural activities and space, and are a main influence on the cultural-ecological environment. Today, Taichung offers the National Taiwan Museum of Fine Arts, National Museum of Natural Science, Taichung Municipal Cultural Center, Wen Ying Hall, Chunghsing Hall, the Chungshan Hall, the Amphitheater, the Taichung Stadium and other similar performance spaces. There are also parks like Taichung Park and Fengle Sculpture Park. The Taichung Metropolitan Opera House, designed by renowned architect Toyo Ito, is currently under construction. In 2007, Taichung was also awarded first place in the Culture & the Arts Category of the World Leadership Awards in London.

2. Cultural Activities: Culture needs activities to expand, to breathe, and to be expressed. Taichung has hosted various cultural activities, such as Rodin's Sculpture Exhibition; singing performances by Pavarotti, Carreras and Bocelli; performances by the Vienna Symphony, Yo-Yo Ma, Cho-Liang Lin and others; and grand outdoor performances like those organized by Ming Hwa Yuan Arts & Cultural Group. All these help to submerge Taichung in waves of cultural beauty.

3. Cultural Assets: The sustainability of culture relies on the organization of cultural information. Galleries like the Stock 20 Art Gallery, which hosts exhibits and events ranging from traditional nihonga to post-modern art performances, manages about 60 art groups. The old Taichung Winery was relocated in 1998, leaving behind a 6.4-hectare empty space. The Taiwan Architecture, Design and Art Center was opened on June 25, 2006 by the Taiwan Council for Cultural Affairs, transforming the old winery into a workshop, exhibition area, experimental stage and convention hall for future Taiwanese artistic and cultural events.

4. Cultural Literacy: Cultural literacy is the results of cultural education. Taichung citizen participation in cultural activities has increased from an average of 3.92 times a year to 33 times a year, implying a great growth in cultural literacy. The improvement in the ability to perceive art and culture is also the base on which Taichung will develop its creative art and design industry.

More important than anything else, Taichung has 14 universities and colleges with a strong emphasis on culture and the arts. Courses like music, arts, industrial and business design, fashion, exhibitions, and culinary art are an important part of the curriculum in Taichung. Tunghai University has established the College of Fine Arts and Creative Design, while Fengchia University has formed the Graduate Institute of Cultural & Creative Design, drawing creative people from local creative businesses such as Chun Shui Tang, Lavender Cottage and Dawn Cake.

V. Real Estate
Market Niche: The development of cross-straits tourism, investment from China, elevation of Taichung's city administrative status, the High Speed Rail, establishment of the Central Taiwan Science Park, and lower prices than Taipei are all drawing construction industry attention to developing more high-end housing for future residents.

In recent years, due to shortages in land and raw materials, real estate prices in Taiwan have been climbing. The increase in prices is also due to growth space created by low prices in the past. These rises are especially reflected by the fact that Taichung's real estate market--whether in terms of infrastructure, climate, recreation, transportation or future prospects--is in no less a favorable position than Hong Kong or Shanghai's markets. Thus, many investors from China are looking away from Taipei and starting to watch developments in Taichung. Taichung's land, prices and urban planning still have a lot of potential for growth, making it today a first choice for many investors and independent developers:

1. Commerical Properties: There is a growing number of commercial buildings in Taichung, suitable as a headquarters or offices for rising industries. Three advantages make the commercial property market very profitable in Taichung: 1) Strategic positioning for Chinese investments and businesses; 2) the creation of Taichung headquarters for businesses involved in cross-straits cooperation between Taiwan and China; 3) High real estate prices in Taipei and an internationalization of Taichung that is drawing investors south.

2. High-End Housing: Furnished with convenient facilities for private and public use, Taichung's single-person and family-size housing--particularly in the New City Hall, Science Museum, Art Museum and Taichung Green Parkway areas--are becoming among the most competitive on the market. The four fastest-growing areas--the Seventh and Eighth Redevelopment districts, Central Taiwan Science Park area, and the National Art Museum area--each contain high-quality new housing that mostly consists of homes with yards or large open public spaces. These residences are well designed with high-end materials and convenient living facilities. At the same time, compared to other high-end housing in Asia, real estate prices in Taichung are relatively reasonable.

3. Recreational and Retirement Homes, Healthy Homes: Healthy homes put an emphasis on public facilities that are beneficial to one's health, such as spas, a natural environment and fresh air. These are different from retirement homes for the elderly. Healthy homes in central Taiwan focus mainly on air, light and greenery. Lighting, ventilation and special designs are a main emphasis. At the same time, open spaces, a mild climate, convenient transportation and advanced medical institutions in Taichung also make it the best destination for retirement homes.

For example, construction companies like Taichung's Live Forever Construction Company and Treasure Dragon Corporation are building all types of green, healthy housing, designing spaces on every floor for gardening, and even opening up roof spaces that allow residents to enjoy urban farming. The large green areas also help to block off heat, increase oxygen supply and cool the buildings. Construction companies like Ben Fu Construction and Maud Jung Construction are both promoting microclimate atriums, using designs based on water and air flow, and suitable temperature controls. Water can also be used for negative air ionization therapy, known to be healthy for the body. Some communities and buildings also include plants that can purify force fields and cleanse the body.

The six modern-day social phenomena of low birth rates, individualization, high incomes, increase of competitive pressures, automation, healthy living, and prolonged lives will certainly profit the retirement home industry. With its open spaces and high-end, healthy housing plans, Taichung is poised for a very bright real estate future.