In 1966, Pan and co-founded the Modern Engineering and Technology Seminar, and Pan was the second METS convener. In the early 1970s, the Republic of China entered a period of crisis. The ROC withdrew from the United Nations in 1971 and severed diplomatic relations with Japan in 1972, and its economy was severely impacted by the global oil crisis of 1973. Premier Chiang Ching-kuo tasked Fei Hua, then Secretary General of the Executive Yuan, with deciding on a major project in science and technology to implement. Fei convened with Pan and, the Secretary General of Telecommunications, and the three agreed that Taiwan should develop an electronics industry. On February 7, 1974, Pan attended a breakfast meeting at the Siao-Xin-Xin Soy Milk Shop in Taipei with six Taiwanese government officials, including Minister of Economic AffairsSun Yun-suan and Minister of TransportKao Yu-shu, as well as Fei Hua and Fang Hsien-chi. The seven attendees planned the development of Taiwan's electronics industry over breakfast, and Sun agreed to pay US$10 million to acquire RCA's semiconductor technology. After the meeting, Pan established and chaired the Technical Advisory Committee in the United States, with mainly Chinese-American university researchers and senior executives from major corporations such as IBM and Bell Labs, to steer the development of Taiwan's integrated circuit industry. He also helped Minister Sun identify and recruit Chinese engineers in the US to establish the Electronics Research and Service Organization under Taiwan's Industrial Technology Research Institute. Pan persuaded RCA, which had decided to exit the semiconductor industry, to sell its obsolete seven-micron CMOS technology to ITRI. Forty ERSO engineers were sent to RCA to receive training for a year, and RCA helped the ERSO build its first IC fabrication plant, which produced its first wafers in 1977–1978. By 1979, the ERSO plant had achieved better yields than RCA itself. Pan's group of recruits later constituted almost the entire senior leadership of Taiwan's semiconductor industry.
Death and legacy
Pan died in the United States on January 3, 1995, aged 82. By then Taiwan had developed advanced 8-inch wafer processing technology and become a world leader in semiconductor manufacturing. To commemorate Pan's contributions, the ITRI and many industry leaders jointly established the Pan Wen Yuan Foundation. In 2004, the foundation set up the Pan Wen Yuan Prize to reward people who have made major contributions to Taiwan's semiconductor industry. Among the awardees are Morris Chang, founder of TSMC, and Stan Shih, founder of Acer Inc. Pan is honored as the "father" of Taiwan's IC industry despite having never studied, settled, or worked for pay in Taiwan.