President Ma Ying-jeou met on the afternoon of September 2 with Lam Research Corp. President and Chief Executive Officer Martin Anstice and Chief Operating Officer Tim Archer. In addition to welcoming the company’s leaders to Taiwan, the president also updated the visitors on developments in Taiwan's semiconductor industry, and Taiwan's four major niche advantages in attracting foreign investment.
In remarks, the president stated that Lam Research Corp., founded in Fremont, California in 1980, is one of the world's top three suppliers of semiconductor manufacturing equipment. The world’s largest supplier of equipment used in the etching process, Lam also provides advanced technology and services to the global semiconductor industry. The company established a subsidiary in Taiwan in 1994, and is an important strategic partner to companies in Taiwan's semiconductor industry, he noted. Taiwan is one of the world's largest markets for semiconductor equipment, and semiconductor manufacturers here continue to invest in advanced manufacturing processes. The president said that in the future, Lam and its partners in Taiwan are poised to engage in even closer cooperation.
The president pointed out that Lam, understanding the high production costs in the United States and the distance of the company from its customers in the Asia-Pacific region, decided to establish a remanufacturing center outside the United States to remanufacture high-end machinery. After evaluating several countries and areas in the Asia-Pacific, Lam decided to establish a global center in Taiwan to refurbish semiconductor equipment.
The president then stated that Taiwan is in fact an important global market for semiconductor equipment, and that Taiwan has over 20 years of experience in developing technology used in the fabrication process. There is an enormous potential clientele for this technology, while Taiwan also has a mature supply chain, he noted. In addition, Taiwan offers a relatively comprehensive environment for the protection of intellectual property rights and offers an abundant pool of talent. Lam's decision to establish a refurbishment center here is absolutely the right one, said the president.
The president mentioned that earlier in the day he attended the opening ceremony of the 2015 Taiwan Business Alliance Conference, during which he outlined Taiwan's four major niche advantages in recruiting foreign business investment.
Taiwan’s first advantage is efficient industrial clusters. For nine straight years, Taiwan's industrial cluster development has been ranked either No. 1 or No. 2 in the World Economic Forum's Global Competitiveness Report. This year, 2015, Taiwan also ranked No. 11 among the 61 countries included in the IMD World Competitiveness Yearbook produced by the International Institute for Management Development in Lausanne, Switzerland, he said.
Advantage number two is Taiwan’s strong innovation and R&D capabilities. The president also stated that numerous multinational corporations, including Hewlett-Packard, have established R&D centers here, making Taiwan a global center for R&D-related operations.
Third, Taiwan’s high-quality investment environment and reputation for law and order have been recognized by the international community. For instance, in the IMD's World Competitiveness Yearbook, Taiwan’s ranking was highest in the "government efficiency" category at No. 9 in the world. Meanwhile, the US-based analysis and consulting firm Business Environment Risk Intelligence (BERI) in August released its Business Risk Reports 2015, ranking Taiwan in the top five out of the 50 countries evaluated for investment environment. This shows that we do, indeed, have a high-quality investment environment, he noted. The president further commented that since taking office, he has strived to improve cross-strait relations, and that interaction of all types between the two sides of the Taiwan Strait is more frequent than in the past. This development has alleviated the need for foreign enterprises to assess the "political risk" of investing here, said the president.
The fourth advantage is a safe and friendly living environment. Taiwan, he said, has an attractive living environment that features cultural diversity, convenience, and comfort. Two on-line magazines previously carried out surveys on safety in countries around the world, and Taiwan was ranked the second-safest country for two consecutive years among the 196 countries polled. A number of surveys by the American Chamber of Commerce in Taipei have also shown that one of the top benefits of living in Taiwan is safety. This shows just how much the international community recognizes the safety and security of Taiwan society, President Ma said.
The president also remarked that Lam Research in 2008 established its Asia-Pacific global training center in Taiwan. The latest machinery and process tools were introduced, and Lam Research is the world's only firm to provide a training center for its entire product line, the president pointed out. Given the center’s success, it has become the training headquarters for global talent, thereby not only providing training to its customers in Taiwan, but also being responsible for training talent from Singapore, Korea, and the United States. The company, together with National Taiwan University, National Chiao Tung University, and National Cheng Kung University, also established the Lam Research Award, aimed at encouraging and recognizing the development of semiconductor-related technology in Taiwan.
The investment model adopted by Lam Research in Taiwan could be called the "Lam Model," according to the president, adding that in the future this model should be promoted. He also hopes the company will continue to play a highly influential role in the semiconductor industry supply chain.