The Republic of China—Striding Into Its 2nd Century
Leader in the Global Economy
Taiwan commanded 16 percent of the global optoelectronics market in 2009, worth over US$52 billion. (GA Photos Group)
To many people around the world, the name “Taiwan” is not—though it ought to be—familiar. They use notebook computers every day without knowing that more than 80 percent of the world’s laptops and netbooks are manufactured by Taiwanese companies. Though considering electronic devices such as mobile phones and digital cameras essential in their daily lives, they do not realize Taiwan is a major producer of the devices’ key components—integrated circuit (IC) chips. They might enjoy getting around on high-tech Giant bicycles yet have no idea that this world-famous brand was born in Taiwan. Some like to decorate their homes with butterfly orchids (Phalaenopsis) but few are aware that half of the butterfly orchid varieties on the market were developed in Taiwan. And only a boating aficionado would guess that his or her luxury yacht was built in Taiwan, the world’s fifth-largest maker of megayachts.
As many as half of all butterfly orchid varieties on the world market are developed in Taiwan. (GA Photos Group)
Taiwan is an emerald isle in the Western Pacific about the same size as the Netherlands with a population of 23 million. It is the world’s 16th-largest merchandise exporter, 25th-largest economy and No. 4 holder of foreign exchange reserves. Over the past half-century, it has transformed itself from an agrarian society into a high-tech powerhouse—one of the “Four Asian Tigers”—which plays an important role in the global economy.
Today’s Taiwan is the world’s secondlargest producer of information-technology goods, with many of its semiconductor, optoelectronics and communications products commanding a significant share of the global market. It accounts for 65 percent of the world’s contract IC chip output while also ranking first in IC packaging and testing. It places second in the world in IC design services, accounting for nearly a quarter of the global market. Taiwan is also the world’s second-largest manufacturer of large TFT-LCD (thin-film transistor liquid crystal display) panels.
The third-largest maker of synthetic fibers, Taiwan is renowned for the quality of its textile products. (GA Photos Group)
Other Made-in-Taiwan products that rank No. 1 in the world in terms of production value include personal navigation devices, electrodeposited copper foil and optical discs. In fact, Taiwan is among the world’s top-three makers of nearly 30 major categories of products, while maintaining leading positions in the global markets for machine tools, precision instruments, and special materials and chemicals.
In addition to its outstanding manufacturing capabilities, in recent years Taiwan has demonstrated its strength in and commitment to the R&D and innovation necessary to maintain a competitive edge in the global marketplace. It ranked third worldwide in patent productivity in the 2010 World Competitiveness Yearbook published by the Switzerland-based International Institute for Management Development (IMD). And its inventors were granted over 9,600 U.S. patents in 2010—the fourth-highest among foreign nations after Japan, Germany and South Korea. Taiwanese individuals and companies are standouts in international design and invention competitions, annually garnering prestigious iF Design Awards (“Oscars of the design world”) bestowed by Hannover-based International Forum Design and numerous awards conferred in conjunction with the Invention and New Product Exposition in Pittsburgh and the Exhibition of Inventions in Geneva.
Further, major global corporations—including Intel, HP, Dell, Sony, Microsoft, IBM and Ericsson—have set up over 40 R&D centers in Taiwan, while domestic enterprises operate an additional 100 such centers.
In terms of LED market share, Taiwan ranked second in 2010, accounting for around 25 percent globally. (Jimmy Lin)
Biotechnology is one of six key emerging industries selected for priority development. (Huang Chung-hsin)
Taiwan is the world’s top supplier of high-end, high-tech bicycles. (Jimmy Lin)
Taiwanese companies produce more than 80 percent of the world’s laptops and netbooks. (GA Photos Group)
Highly regarded economic research institutions, moreover, are unanimous in assessing Taiwan’s business and investment environment as one of the world’s best:
Taiwan ranks eighth overall in the IMD’s 2010 World Competitiveness Yearbook, an evaluation of how a nation’s environment creates and sustains the competitiveness of enterprises.
Taiwan’s economic vitality is symbolized by Taipei 101, the world’s second-tallest building. (Yeh Ming-yuan)
In its August 2010 business environment risk report, the U.S.-based Business Environment Risk Intelligence rates Taiwan as a favorable investment destination, according the island the world’s fourth-highest Profit Opportunity Recommendation score, behind only Switzerland, Singapore and Norway.
The London-based Economist Intelligence Unit’s business environment outlook for 2010-2014 places Taiwan 10th among 82 nations evaluated.
To those in the know, the importance of Taiwan in the global economy—especially its technology sector—is self-evident. The world-renowned science parks are only part of a vast network of high-tech design and manufacturing facilities Taiwan has built to meet the world’s growing digital needs.
Abundance of talent, businesses’ agility in responding to market changes and client needs, as well as comprehensive supply chains and industrial clusters have made Taiwan one of the world’s most competitive economies. With such advantages, Taiwan can be counted on to continue playing an indispensable role in the world—and to become a household name in the global community.
