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Taiwan, as an island, relies heavily on international trade for sustaining economic growth, due to geographical limitations as well as lack of natural resources. In a statistical estimation of the 2008 economic activities of Taiwan, the export trade comprises 63.49 percent of the Gross National Product (GNP). Under the guidance of the national strategy, the semiconductor industry became one of the key industries in Taiwan, over a period of two decades. The success of the integration of the semiconductor supply chain allowed Taiwan to rapidly grow as a manufacturing giant in consumer electronics, such as personal computers (PCs), liquid crystal display (LCD) panels, cell phones. In search of the next promising powerhouse technologies, the government, like many other countries, recognizes nanoscience and biotechnology as two forward-looking economic mainstreams that will be able to transform Taiwan into a “Green Silicon Island.” By leveraging established hightech manufacturing infrastructure, Taiwan aims to become a regional nanotechnology research and development (R&D) center for industrial applications and a key producer of nanotech products.

Nanotechnology is known for new boundaries of physics in materials, optics, electronics, and mechanics. To cope with the emerging technology and opportunity, the government officially launched the National Science and Technology Program for Nanoscience and Nanotechnology in 2004 to outline a comprehensive roadmap for becoming a major nanotechnology industrialization player worldwide. The program is focused in four directions, including academic excellence, industrialized technologies, incubation of talent, and core infrastructure. A subsequent flagship project aiming to poise Taiwan as a center for innovation nanotechnology R&D and high value-added manufacturing was initiated, based on the civil chemical industry, metal and electromechanics, electronic information, and energy and biotechnology.

In 2004, the Taiwan government allocated NT$23.2 billion to initiate a six-year national project for nanotechnology. Envisioning a potential economic boom due to the cutting-edge technology, the leading research organizations, such as the Academia Sinica Institute (ASI), the Industrial Technology Research Institute (ITRI), and the National Science Council (NSC) have started establishing independent research centers or departments in response to the next technology boom.

Nanotechnology also impacts the consumer market in a significant way. In 2007, there were 175 private companies involved in nanorelated areas, investing a total of more than NT$3.9 billion. These private companies are involved in a broad spectrum of markets from semiconductors, chemistry, electronics, materials, and biotechnology, to optics, and pharmacy. More and more nanorelated products have been entering Taiwanese daily life due to the fast development. One successful instance is Phyllotex, a bamboo carbon fiber invented by the privately owned Taiwan Textile Research Institute (TTRI), boasting a wide range of applications. The product was licensed to Taiwan-based ABA Nano and Co-Op Enterprise. This is a positive outcome of a two-stage, four-year plan administered by Taiwan Ministry of Economic Affairs (MOEA).

To showcase and promote Taiwan's advanced nanotechnology to the world, the Taiwan Nano Exhibition was held for the first time in 2003 and is continuing to grow as a major event for nanotechnology. This exhibition was the second largest nanotechnology event in Asia and provides the public with an appropriate information exchange platform.

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