197. As we all know, it is inventions and new creations that provide us with the possibilities and the means to improve lives. And, this holds true in all walks of life.
198. In 1958, Jack St. Clair Kilby and Robert Norton Noyce invented the integrated circuit (IC), and this year marks its 60th anniversary. Since then, the development of the semiconductor industry has been the driving force behind the digital revolution. Not only has this been the foundation on which modern technologies, such as home appliances, computers, the internet, cloud computing, smart phones, etc., have been built, but it remains the basis of today's emerging technologies as well, such as the Internet of Things (IoT), artificial intelligence (AI), and self-driving automobiles. I believe that the example Laundroid demonstrated by Japan also use ICs. So, we can definitely say that the burgeoning development of the semiconductor industry, and the inventions and creations it has inspired, have improved our lives in so many ways, not least in terms of convenience.
199. I would like now to give you just a very short history of our own development in this field over the last 30 or so years. We made the decision, in the 1970s, to make an all-out effort to develop our own IC industry. From then onwards, the Industrial Technology Research Institute (ITRI) started to introduce US IC designs and manufacturing technologies. These were later combined with ITRI's self-developed technologies, then transferred to the United Microelectronics Corporation (UMC) and the Taiwan Semiconductor Manufacturing Company (TSMC). Little by little, a strong IC industry with an established upstream and downstream supply chain was developed.
200. From 1987, TSMC and UMC focused on the so-called "foundry model" (that is, separating the semiconductor fabrication plant operation from the integrated circuit design operation into separate companies or business units) in order to generate innovation in the manufacturing process. As a result, they have become global leaders in semiconductor manufacturing technologies. In 2017, we were ranked the world's third largest in term of gross industrial output values of the semiconductor industry chain. Of these, foundry had the largest market share globally, accounting for over 70%.
201. In addition to the transfer of technology from the US and the ITRI in the early stages, the comprehensive protection of intellectual properties, such as patents and trade secrets, was also a key element in promoting the expansion of our semiconductor industry. For instance, according to TSMC's Annual Report, "IPRs protect the company's advanced and leading-edge technologies, safeguard its freedom to operate, and enhance its competitive position". And, according to the Annual Reports of TSMC and UMC for 2017, "the combined total of patents granted worldwide exceeded 40,000 as of the year's end". Regarding the protection of trade secrets, the Trade Secrets Act was instituted in 1996. In 2013, a criminal liability clause was introduced into the Act to provide more comprehensive protection for intellectual properties within our territory.
202. Future applications like the IoT and AI will undoubtedly depend on the semiconductor industry as their foundation. We are currently actively pushing for development of industries in areas such as, smart cities, smart manufacturing, automatic vehicles, augmented reality (AR), virtual reality (VR), and information security. Our belief is that the semiconductor industry's existing advantage coupled with our continuing investment will generate more relevant inventions and creations that will further improve the quality of people's lives.
203. Intellectual property and innovation are indispensable forces driving economic growth. I hope you found these examples and experiences useful. We look forward to hearing those of other Members, and we would very much welcome more sharing and discussion of IP policies and experiences between Members in the future.
