Taiwan is making a heavy commitment of resources to promoting 5+2 industrial revolution.
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Taiwan Business Insights
Epidemic control myth
Taiwan is the first Asian economy to have recovered from Covid-19 impact and successfully managed without needing to impose nationwide lockdown. This is due to Taiwanese inherent nature of disciplined life, combined with Government’s implementable regulations, enabled the manufacturing sectors and service industries to continue function smoothly.
Moreover the SMBs were steadily supplying the world with needed goods and services. It is a proud moment to mark that TSMC, the world’s largest semiconductor foundry based in Taiwan – the only company besides Samsung of Korea to produce 7nm chips – holds 51.1% global market share since the second quarter of 2020.
Taiwan sustains export growth post- pandemic.
In fact, the pandemic created a gargantuan moment in advanced countries for electronic products demand. This surged Taiwan exports market by 37.71%, which contributed to 60% of country’s GDP growth in 2020.
Though Taiwan’s manufacturing ecosystem is similar to that of the mainland China, yet the semiconductor industry is highly advanced, thereby making Taiwan as a natural choice for diversifying trade opportunities.
Furthermore, the ability of Taiwan SMBs to change manufacturing course quickly gives an edge over the Japanese and the Korean companies for becoming an ideal partner to the global supply chain players. Taiwan is enabled by ready-to-grow electronics and technology, precision machinery, petrochemicals and heavy industry clusters.
As an innovation-driven economy, the sound infrastructure, legal compliances, IPR protection and Industry-technology research institutions contribute to highly talented resources. While manufacturing industry is a core component of Taiwan’s economy, smart manufacturing is a cornerstone of its modern economy, where Industry 4.0 is the key to a new ‘Taiwan Miracle’.
Taiwan leapfrogs Japan & Korea
The “5+2 innovative industries plan” by the government promotes Intelligent Machinery, Asia Silicon Valley, Green Energy, Bio-medicine, National Defense and Aerospace, New Agriculture and the Circular Economy. The focus on these areas is poised to be game changer for Taiwan from being contract manufacturing hub to a new commercial model centered on high-value-added businesses, services and solutions.