{"id":64624,"date":"2021-05-21T15:07:01","date_gmt":"2021-05-21T05:07:01","guid":{"rendered":"https:\/\/www.aspistrategist.ru\/?p=64624"},"modified":"2021-11-12T13:20:17","modified_gmt":"2021-11-12T02:20:17","slug":"establishing-a-semiconductor-cradle-in-the-northern-territory","status":"publish","type":"post","link":"https:\/\/www.aspistrategist.ru\/establishing-a-semiconductor-cradle-in-the-northern-territory\/","title":{"rendered":"Establishing a semiconductor cradle in the Northern Territory"},"content":{"rendered":"
<\/figure>\n

Two major infrastructure projects, HyperOne<\/a> and Project Echo<\/a>, in conjunction with the Northern Territory government\u2019s \u2018Terabit Territory<\/a>\u2019 plan, have set Darwin on its way to becoming Australia\u2019s national digital hub and the linchpin of telecommunications connecting the United States with the region.<\/p>\n

These projects are expected to provide Darwin with a powerful foundation on which to develop its cyber capability\u2014with the goal of becoming home to Australia\u2019s first science industrial park, manufacturing semiconductor chips.<\/p>\n

The challenges presented by growing regional tensions and a post-Covid appetite for a radical rethink of what nation-building means make now a time for bolder action.<\/p>\n

Australia cannot simply conjure up a semiconductor industry, but increasing<\/a> research and development spending, encouraging private sector investment and seeking resources and a suitable location to build such an industrial park would be a good start.<\/p>\n

Increasing strategic rivalry between the US and China has created tensions that have alerted countries<\/a> relying on Taiwan\u2019s semiconductor industry to their own vulnerabilities.<\/p>\n

Since the pandemic began, countries have been reassessing their own critical technologies. After the US, Japan and European Union suffered major disruptions to their semiconductor supply networks, President Joe Biden signed an executive order in February reviewing his country\u2019s critical supply chains. The US and Japan<\/a> are increasing investment in semiconductor development.<\/p>\n

Australia badly needs a clear plan. We may not have felt the impact of semiconductor industry fluctuations as much as other countries, but not having a secure supply chain is a major \u2018sovereign capability risk<\/a>\u2019 that could make us very vulnerable in the increasingly turbulent regional environment.<\/p>\n

The Taiwan Semiconductor Manufacturing Company (TSMC) has been recognised<\/a> as the world\u2019s most successful chip manufacturer and it\u2019s not the only successful example of Taiwan\u2019s high-technology capability. The cradle<\/a> of its technology development was Hsinchu Science Park.<\/p>\n

Constructed in the 1980s, the park nurtured semiconductor companies such as TSMC, United Microelectronics Corporation and MediaTek<\/a> and also attracted major foreign companies such as ASML, Intel and Lam Research to invest in Taiwan. Besides its technological importance, it boosted the city\u2019s economy and infrastructure development and encouraged skilled workers to relocate there.<\/p>\n

Finding an ideal location for a science park was not easy, nor was operating and maintaining it. Taiwan faces the constant threat of natural disasters such as earthquakes and typhoons, and droughts<\/a> and floods are also becoming a new normal. The need for a stable electricity supply is constantly discussed<\/a>. Yet, Taiwan has managed to keep those problems under control through careful planning.<\/p>\n

When Taiwan first constructed Hsinchu Science Park, key criteria included the availability of a site larger than 300 hectares, and access to more than 36,000 tonnes of water daily.<\/p>\n

Australia should look to Hsinchu Science Park as a model for such an establishment in Darwin. As with all major infrastructure projects north of 26 degrees south, raising the necessary investment will be a challenge.<\/p>\n

However, Australia urgently needs to address the implications of worsening tensions in the South China Sea, China\u2013Taiwan cross-strait issues<\/a>, and its defence capability generally.<\/p>\n

James Andrew Lewis from the Center for Strategic and International Studies has written<\/a> that investment in technology is crucial for defence and the semiconductor industry is \u2018the backbone of economic and military performance in the digital age\u2019. It will be ambitious for Australia to aim to provide all of its own semiconductors, but constructing a science industrial park would be a significant start while also bringing investment to the NT.<\/p>\n

Apart from the Taiwanese park\u2019s geography, its planners also noted the need for technological capability, funding, management and skilled people. Darwin has yet to tick all of these boxes but therein lies the opportunity.<\/p>\n

Finding a suitable site should not be problem as Darwin\u2019s population and infrastructure are not overly concentrated. Although the city faces water shortages, the NT government has attempted to address the issue through the \u2018Darwin region water supply strategy<\/a>\u2019 with a new pumping station and more storage. The government has also set up a renewable energy roadmap<\/a> to gradually replace fossil fuels with cheaper, more secure and more eco-friendly power.<\/p>\n

The Australian Defence Force recognises<\/a> northern Australia\u2019s geographic and strategic importance<\/a>. Establishing a science industrial park in Darwin would further advance Australia\u2019s defence technology strategy while helping to solve semiconductor supply chain issues.<\/p>\n

As John Coyne notes in ASPI\u2019s special report<\/a>, \u2018Thinking big!\u2019: Resetting northern Australia\u2019s national security posture<\/em>, without a socially and economically prosperous northern Australia, there\u2019ll be insufficient industry and infrastructure support for future defence operations, including regional engagement and power projection. Building a science industrial park in Darwin would enhance Australia\u2019s technological capability and provide a powerful base to start its own semiconductor industry.<\/p>\n","protected":false},"excerpt":{"rendered":"

Two major infrastructure projects, HyperOne and Project Echo, in conjunction with the Northern Territory government\u2019s \u2018Terabit Territory\u2019 plan, have set Darwin on its way to becoming Australia\u2019s national digital hub and the linchpin of telecommunications …<\/p>\n","protected":false},"author":1310,"featured_media":64626,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[1006,475,1005,332],"class_list":["post-64624","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-darwin","tag-infrastructure","tag-northern-australia","tag-technology","dinkus-north-of-26-south"],"acf":[],"yoast_head":"\nEstablishing a semiconductor cradle in the Northern Territory | The Strategist<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aspistrategist.ru\/establishing-a-semiconductor-cradle-in-the-northern-territory\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Establishing a semiconductor cradle in the Northern Territory | The Strategist\" \/>\n<meta property=\"og:description\" content=\"Two major infrastructure projects, HyperOne and Project Echo, in conjunction with the Northern Territory government\u2019s \u2018Terabit Territory\u2019 plan, have set Darwin on its way to becoming Australia\u2019s national digital hub and the linchpin of telecommunications ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.aspistrategist.ru\/establishing-a-semiconductor-cradle-in-the-northern-territory\/\" \/>\n<meta property=\"og:site_name\" content=\"The Strategist\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ASPI.org\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-21T05:07:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-11-12T02:20:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/05\/GettyImages-1228689353.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"683\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Elena Yi-Ching Ho\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:site\" content=\"@ASPI_org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Elena Yi-Ching Ho\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.aspistrategist.ru\/#website\",\"url\":\"https:\/\/www.aspistrategist.ru\/\",\"name\":\"The Strategist\",\"description\":\"ASPI's analysis and commentary site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.aspistrategist.ru\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-AU\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-AU\",\"@id\":\"https:\/\/www.aspistrategist.ru\/establishing-a-semiconductor-cradle-in-the-northern-territory\/#primaryimage\",\"url\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/05\/GettyImages-1228689353.jpg\",\"contentUrl\":\"https:\/\/www.aspistrategist.ru\/wp-content\/uploads\/2021\/05\/GettyImages-1228689353.jpg\",\"width\":1024,\"height\":683,\"caption\":\"TAIPEI, TAIWAN - 2020\/09\/23: A wafer (a thin slice of semiconductor) seen on display during the SEMICON 2020. 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