TAIPEI, Feb 11: Taiwan’s so-called “Silicon Valley” was hit hard last year as combined sales from its technology companies plunged 12 per cent, industry authorities said on Wednesday.

The Hsinchu science park in northern Taiwan, the centre of the island’s electronics sector, posted sales of 1.01 trillion Taiwan dollars ($29.64 billion) in 2008, down from 1.15 trillion for 2007, the National Science Council said.

“The fast economic downturn led to a shrinking of global demand for electronic products,” it said in a statement.

The Hsinchu Park houses 449 companies, making products such as microchips, computers and flat panels.

Companies in another science park in southern Tainan country posted a decline of 2.03 per cent in sales last year, although a third science park in central Taiwan grew 7.72 per cent year-on-year.

The combined sales of the firms at the three science parks rose 3.62 per cent year-on-year in the 10 months to October, but fell 6.55 per cent for the full year as global economic woes deepened.

Lih J. Chen, deputy chief of the council, forecast that the electronics industry could bottom out this year and regain momentum in 2010.

Taiwan’s leading flat panel and semiconductor makers confirmed they had recalled thousands of workers on forced unpaid leave after receiving ‘rush orders’ from clients recently.

However, Terry Gou, head of Hon Hai Precision, the world’s largest electronics manufacturing services company, was less optimistic.

“I think judgement on the business outlook should not be based on the industry’s performance over one quarter or two,” he told the United Evening News.

“In my opinion, the worst is yet to come.” Taiwan saw a record drop of 44.1 per cent in its exports in January as demand for its products slackened around the world, according to the finance ministry.

The island’s exports for the month totalled $12.37 billion, down $9.76 billion from a year earlier, marking the fifth consecutive monthly decline, the ministry said. —AFP