When most people think of Taiwan, they might picture bubble tea, night markets, Taipei 101, or dramatic mountain landscapes. But 70 kilometres southwest of Taipei, nestled in the island’s northwestern corner, lies a city that quietly powers the global tech economy—and may just be one of the smartest places on Earth. Welcome to Hsinchu (新竹), the home of Taiwan’s high-tech revolution!

A photo of the old east gate in today's downtown Hsinchu
The old east gate in today’s downtown Hsinchu City.
Suicasmo, CC BY-SA 4.0, via Wikimedia Commons

A City Built on Brains

With a population of just over 450,000, Hsinchu might not seem like a tech titan at first glance. But the city punches far above its weight, thanks largely to its dense cluster of world-class universities, research institutes, and one of the most successful science parks in the world: the Hsinchu Science-Based Industrial Park, or Hsinchu Science Park (HSP) for short.

Founded in 1980 by Taiwan’s government under the guidance of the National Science Council (now the National Science and Technology Council), HSP was inspired by California’s Silicon Valley. The aim? To transform Taiwan from a low-cost manufacturing economy into a knowledge-based powerhouse.

The park was strategically placed near two of Taiwan’s elite universities: National Tsing Hua University and National Chiao Tung University (now merged under the new National Yang Ming Chiao Tung University). This proximity created a steady pipeline of engineering talent and research collaboration.

Photo of TSMC fab facility in Hsinchu, Taiwan

The Silicon Island Effect

From modest beginnings, Hsinchu Science Park exploded into a global tech hub. Today, it houses more than 500 companies in sectors like semiconductors, telecommunications, optoelectronics, and biotechnology. Its most famous tenant is the Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest dedicated chip foundry, founded in the park in 1987.

Together, companies in HSP generate over US$35 billion in annual revenue, quietly playing a critical role in everything from Apple’s iPhones to Tesla electrical vehicles to and AI chips.

A photo of the north gate to the National Chiao Tung University campus
Suicasmo, CC BY-SA 4.0, via Wikimedia Commons

Is Hsinchu the “PhD Capital” of the World?

There’s a popular saying that Hsinchu has the highest density of PhDs in the world. While it’s difficult to verify with global ranking data, the claim isn’t far-fetched.

Between its two elite universities, multiple national research institutes (including the Industrial Technology Research Institute, ITRI), and thousands of engineers employed by HSP companies, the city boasts an incredibly high concentration of graduate degree holders.

Hsinchu stands out globally for blending this intellectual capital with precision high-tech manufacturing muscle—a rare and powerful combination.

Image of semiconductors and other chips on a circuit board

Brains, Business, and Beyond

The impact of Hsinchu goes beyond economic statistics. It represents a vision that Taiwan had in the late 20th century: to build an innovation-driven society. Through deliberate policy, investment, and education, that vision took root—and it continues to evolve.

Hsinchu is a symbol of Taiwan’s resilience, innovation, and global relevance. It is where Taiwan’s brightest minds build the future and power the world’s technology.

Posted by:Island Folklore

An online repository of Taiwan’s folktales, history, legends, myths and traditions.