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How a small Taiwanese city transformed the global chip industry

Hsinchu marks its 40th anniversary as a high-tech hub

Industry heavyweights, including longtime rivals Morris Chang, second from left, and Bob Tsao, second from right, attend an event marking the 40th anniversary of Hsinchu Science Park on Dec. 15. (Photo by Cheng Ting-Fang)

HSINCHU, Taiwan -- When Hsieh Chi-chia returned from the U.S. nearly 40 years ago to start a satellite parts company in the northern Taiwanese city of Hsinchu, he wondered at first if he had made a mistake.

The government had recently established the Hsinchu Science Park as a special industrial zone to attract high-tech industry and create a "Silicon Valley of Taiwan." But there were problems.

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