Sep 05, 2025 12:30:00

Why is the birth rate increasing in Taiwan's Silicon Valley?

Pronatalism, or the idea of encouraging children to have children, is gaining popularity in Silicon Valley , led by Elon Musk, the father of 11 children. Taiwan, a popular semiconductor manufacturing hub, has long suffered from one of the world's lowest birth rates, but in recent years, the birth rate has risen only in the area known as 'Taiwan's Silicon Valley,' which has attracted attention, according to a report from Rest of World.

Taiwan birth rate bucks trend in Hsinchu semiconductor hub - Rest of World
https://restofworld.org/2025/taiwan-birth-rate-hsinchu-semiconductor-hub/

The only place in Taiwan where the birth rate is rising is the Hsinchu Science Park (HSP), home to around 600 technology companies, including Taiwan Semiconductor Manufacturing Co. (TSMC) , MediaTek , and United Microelectronics Corporation (UMC) . Often referred to as Taiwan's Silicon Valley, the Hsinchu Science Park produces semiconductors that are essential in everything from smartphones to AI.

Taiwan's total fertility rate (an indicator of the number of children born to one woman) was 0.89 in 2024. In contrast, the Hsinchu Science Park's total fertility rate has remained around 1 in recent years, and postpartum care facilities are reportedly overbooked. Young workers are migrating to the Hsinchu Science Park in search of work, with the area's population expected to exceed 177,000 by 2024. The combination of the influx of young talent and increased employment opportunities in the Hsinchu Science Park is known among demographers as the 'HSP effect.'

Yang Wenshan, a demographer at Academia Sinica , said the rising birth rate in Hsinchu Science Park is due to an influx of highly educated young people of childbearing age. 'They have stable, high incomes and are more likely to start families,' he said. By contrast, the US birth rate is expected to fall to a record low of 1.6 by 2024, and the birth rate in San Francisco, home to Silicon Valley, is down 19% compared to 2019.

Ms. Guo Chia-hsin lives in the outskirts of Hsinchu Science Park and is the mother of two elementary school-aged daughters. After marrying her husband, an engineer at MediaTek, Ms. Guo moved to Hsinchu Science Park. After giving birth, she quit her office job and became a full-time housewife. 'Families like ours are not uncommon here. Having two children is common, and some even have three,' she said.

Hsinchu Science Park is the only area in Taiwan where the number of children under 14 outnumbers the elderly. The city's childcare and education infrastructure is struggling to keep up with the rapid population growth, says Liu Chong-hsien, a city council member and former UMC engineer. The park is also expanding its school facilities and adding new classes to meet the demand.

Technology companies also boast about the rapidly increasing birth rates of their employees, and TSMC has made a big fuss about the unusually high birth rates among its employees, which has been reported in the US and European media.

One in 50 babies born in Taiwan is a 'TSMC baby', revealing that the birth rate is unusually high among TSMC employees - GIGAZINE

Demographer and pronatalist Lyman Stone said, 'Ultra-low fertility regions like Taiwan and San Francisco are calling attention to the need for pronatalism. 'Whether you're an elite or not, it's good to be aware of the problem of low birth rates. However, the tech elite still doesn't seem to be seriously committed to policy or cultural change that would boost the birth rate across society.' Leslie Root, a demographer at the University of Colorado, explained that San Francisco's low birth rate is because 'when people start raising children, they move to areas with lower housing and living costs.'

Rest of World points out that there are many factors behind Taiwan's declining birth rate. Taiwan's birth rate is expected to fall to 5.76 births per 1,000 people by 2024, half the rate from 10 years ago. One reason for this is the increasing number of women who choose not to marry or have children. Local surveys also reveal that Taiwanese citizens are concerned about the high cost of raising children. Many also reject traditional Confucian values (social norms that place household and caregiving responsibilities on women). Liu Ruorong, a researcher on gender and labor-related issues at Academia Sinica, said, 'As education levels and incomes rise, women are increasingly postponing or completely eliminating motherhood because the opportunity cost is too high.'

To encourage childcare, technology companies are introducing family-friendly policies. TSMC and MediaTek have set up childcare facilities in the Hsinchu Science Park and offer financial incentives to employees. Novatek apparently provides employees with a monthly childcare subsidy of NT$5,000 (approximately US$24,000) until their child turns six. Many companies also offer flexible work schedules and remote work options for parents with young children.

The average annual salary of workers at Hsinchu Science Park is NT$1.85 million (approximately JPY 9 million), more than three times the national average. Senior employees at TSMC can earn as much as NT$5 million (approximately JPY 24 million). Thanks to these high salaries, many families are able to have one parent work at Hsinchu Science Park while the other parent quits their job to focus on raising their children.

However, this division of labor often follows traditional gender roles, with one mother saying, 'My husband is hardly ever at home,' and 'At Hsinchu Science Park, mothers like us are called 'pseudo-single mothers.' Our partners typically work long hours, so most of the housework falls on us.' She also said, 'I sometimes miss the days when I was working, but we have made plans and are building our lives accordingly.'