TAIWAN
GDP (Million $) – 828.659
GDP Per Capita ($) – 35.513
Growth Rate – 3,31
Population – 23.334.000
Total Area (km2) – 36,188
Capital – Taipei
Monetary Unit – New Taiwan dollar ($)
Taiwan has a resilient capitalist economy when compared to the rest of the countries in the Asia Pacific. The country has shown immense fiscal growth, even with the pandemic raging on. This is a reflection of the country’s effective and efficient public health infrastructure coupled with a high level of trust in the Taiwanese government and the policies they have implemented to keep the pandemic in check.
With the pandemic effectively controlled, Taiwan’s economy managed to function smoothly and without much interruption. One of the main industries that enjoyed a surge in the production of global exports is the digitalization industries.
The industries in particularly include the electronic, petrochemical, telecommunication, agricultural industry and financial industries.
INDUSTRY
The economy of Taiwan is a highly developed market economy. It is the 8th largest in Asia and 18th-largest in the world by purchasing power parity, allowing Taiwan to be included in the advanced economies group by the International Monetary Fund. It is gauged in the high-income economies group by the World Bank. Taiwan is one of the most technologically advanced computer microchip makers in the world.
Taiwan was an important trading entity at times during its history, which even included serving as a commercial centre in East Asia. For extensive periods of time pirates operating out of Taiwan carried on illicit foreign trade. During the time when China ruled Taiwan there was considerable commerce between the island and the mainland. Taiwan’s trade was mainly with Japan, however, during the Japanese colonial period.
Taiwan’s main exports are electronics, basic metals and metal products, plastics and rubber, chemicals, and machinery. Its principal export trading partners include China (including Hong Kong), the United States, Japan, Singapore, South Korea, Malaysia, and Germany. Taiwan’s major imported commodities include electrical machinery and appliances, mineral fuels and mineral products, and chemicals. Its chief import sources are China, Japan, the United States, South Korea, Malaysia, Australia, Germany, and the Netherlands.
Taiwan is the world's largest supplier of contract computer chip manufacturing (foundry services) and is a leading LCD panel manufacturer, DRAM computer memory, networking equipment, and consumer electronics designer and manufacturer. Major hardware companies include Acer, Asus, HTC, Foxconn, TSMC and Pegatron. Textiles are another major industrial export sector, though of declining importance due to labor shortages, increasing overhead costs, land prices, and environmental protection.
Imports are dominated by raw materials and capital goods, which account for more than 90% of the total. Taiwan imports most of its energy needs. The United States is Taiwan's third largest trading partner, taking 11.4% of Taiwanese exports and supplying 10.0% of its imports. Mainland China has recently become Taiwan's largest import and export partner. Imports from mainland China consist mostly of agricultural and industrial raw materials. Exports to the United States are mainly electronics and consumer goods. As Taiwanese per capita income level has risen, demand for imported, high-quality consumer goods has increased.
Taiwan Industrial Fasteners Institute
Taiwan has been producing screw products for 40 years. In the southern region, the Chunyu factory and equipment factory, and the local area for mobile phone factories. The production of these two factories is the pioneer of the screw industry and has cultivated fine screw professionals. The existing Taiwan screw industry Many of the companies have a relationship with the two factories.
The Screw Association was established in 1969. Eight manufacturers, including Chunyu, Yungfeng, Chiayi, Sanshing, Luchu Shinyee, Guofeng, Universal, and Zhunan, initiated the formation of the "Taiwan Screw Industry Association"; it was renamed in 2005. "Taiwan Screw Industry Association". At that time, there were only 32 member factories, and the development continued to increase year by year. There are currently 710 members.The current Chairman of the board is Dr. Tu-Chin Tsai of Sun Beam Tech Industrial Co., Ltd.
Chairman of TIFI - Dr.Tu-Chin Tsai - To achieve Taiwan fastener's objective of fine quality and good service, we continue promoting the standardization of the system, the systemization of the management, and also introducing digital and intellectual manufacturing process, making our products meet the global standard. Combined with the excellent quality management process, to facilitating the enterprises' overall efficiency. Based upon the decent technique and excellent quality of the products, the institute strives to promote Taiwan's excellent fastener products to every corner in the world.
AUTOMOTIVE
Total output of Taiwan’s auto-manufacturing sector came to NT$192.1 billion in 2021. Meanwhile, the total output of the auto components sector was NT$227.1 billion, and for the automotive electronics sector it was NT$295.8 billion. The combined total output value came to NT$715 billion for the three sectors. For the past two years, the automotive electronics sector has posted the biggest growth in our industry, and the sector single-handedly accounted for over 40% of total auto industry output value in 2021.
In terms of product categories, Taiwan mainly produces small family cars (2,000 cc or smaller), and Taiwan's component makers mainly produce auto lights, body and stamping parts, tires, and wheel rims. Automotive electronics mainly consist of driver information systems (e.g., ADAS, multimedia screen, and GPS), electric motor, and transmission systems. In addition to high domestic sales, Taiwan-made auto components are also exported in large quantities to markets in North America and Europe. Taiwan is also a significant player in the aftermarket and OEM markets, and some Taiwanese manufacturers have worked their way into the supply chains of international automakers of the likes of Tesla and Ford. As firms in Taiwan's ICT and related sectors are making an active effort to break into the fields of automotive electronics, autonomous vehicle technology, and new energy, Taiwan is in a very strong position to develop new generation automobiles.
After several decades of development, Taiwan's auto industry has built up strong capability for the manufacturing of conventional vehicles, and our firms have long-standing cooperative ties with major manufacturers, as well as contractors. As a result, a very comprehensive auto industry supply chain has formed in Taiwan. In recent years, due to development trends in intelligence and autonomy, Taiwanese makers of auto components have been taking aggressive steps to position themselves in the field of new generation automobiles. Automotive electronics makers are also capitalizing on their competitive advantages to become members of the supply chains of big-name international auto makers.
Taiwanese firms are able to provide cathode and anode materials, ion membranes, separators, electrolytes, and other such materials and battery cell parts. There are also firms that provide battery modules and battery systems. As for powertrains, Taiwanese firms can provide motors and motor controllers, upstream gears, stators, and power elements/modules. Taiwanese firms also provide automotive chips.
Upstream components for automotive electronics include automotive chips, automobile imaging lenses, automotive connector/wiring harness, battery cells/modules, and automobile diodes/relays. Midstream components/module assemblies include automobile navigation modules, automobile lighting module, automobile imaging lenses, electric drive systems, automobile display panels, smart human-machine interface and dash board assembly, automobile radar, automobile transmission/deceleration, and electric motors/modules. Downstream systems include advanced driver safety assistance, automotive driving information and entertainment, automobile illumination systems, automobile security systems, electric vehicle power systems, automotive chassis electronic systems, electric vehicle charging, and vehicle-to-everything (V2X).
Taiwanese companies are present in each sector. For example, Nuvoton Technology is a MCU producer that has developed new products such as amplifier chips for vehicles, battery monitoring system (BMS) chips, and time of flight (ToF) sensors. After its purchase of Panasonic's semiconductor plant in 2020, Nuvoton has successfully entered Toyota and Tesla's supply chain and became one of the top 7 MCU plants in the world in 2021.
Taiwan's main stronghold of the auto industry is in the north, where there is a comprehensive industrial supply chain. Assemblers of complete vehicles include Gogoro, Sanyang Industry, Yulon Motor, China Motor, RAC Electric Vehicles, Ford Lio Ho Motor, and Kuozui Motors. There are specialists in the manufacture of auto bodies, such as Hsin Sheng Autos. Makers of drive motors, control modules, electric vehicle auxiliary systems, electric vehicle power storage systems, power management systems, other key technologies and systems for electric vehicles, and niche electric vehicles1 include iconic companies such as Delta Electronics and Foxtron Vehicle Technologies.
Central Taiwan has always been home to an important industrial cluster in the precision machinery sector. This cluster includes makers of drive motors, control modules, electric vehicle auxiliary systems, electric vehicle power storage systems, power management systems, other key technologies and systems for electric vehicles, and niche electric vehicles. Among these firms, Mobiletron is one of the best known, and Formosa Smart Energy Tech has successfully developed lithium iron phosphate battery cells and modules.
The development of electric vehicles and self-driving vehicles has brought huge changes to automotive electronics technology. Demand for an Internet of Vehicles (IoV) is projected to grow immensely, and the associated need for cybersecurity has become a very important issue. In the field of new generation automobiles, it is true that the mainland China market offers huge business opportunities and plentiful development resources, but comprehensive network security protection has become more important due to the development of self-driving vehicles and IoV technologies. Taiwan offers strong cybersecurity technologies and extensive experience in cyber defense, making it a strong partner in the development of new generation automobiles and testing sites.
MANUFACTURING
Taiwan’s industrialization started with light industry—e.g., textiles and small appliances. It soon progressed to more labour-intensive and capital-intensive production—radios and other electronic devices and computers and other ICT products, including integrated circuits.
Meanwhile, Taiwan built a flourishing petrochemical industry utilizing imported petroleum that included spin-off products, including plastics, drugs, and synthetic products, many of which were used in improved textiles. Taiwan also began producing steel and other metals and components that were used to build ships, oil rigs, and automobiles (mostly under coproduction agreements with Japanese and U.S. companies). Tools, auto parts, electrical equipment, optics, and telecommunications became important businesses. Taiwan also produced some state-of-the art weapons, including jet fighter planes and missiles, although it had limited success in competing on the world market for sales.
TRANSPORTATION AND SHIPPING INDUSTRY
Transportation is a derivative economic behavior. Most transportation is carried out to fulfill certain economic behaviors, such as going to work, school, business trips, tourism, etc. The transportation and shipping industry can be roughly divided into five categories: container shipping, bulk shipping, freight contracting, container transportation collection and warehousing, and land, sea, and air mass transportation.
Container shipping is mainly based on regular routes. Most of the goods carried are manufactured products. Standardized packaging will deliver the goods directly to the receiver’s warehouse. There is no need to disassemble and load the goods on the way to reduce the operation time. Therefore, it has a high degree of compatibility with the global consumer market. The container shipping and air transportation industries are highly sensitive to oil prices. The balance of capacity, the trend of oil prices, and the collection of additional fees are all important keys to the company's profitability.
Observing the recent surge in ocean freight rates, the main reason is the "explosive rebound" in European and American import demand from Asia, which has caused a serious imbalance in the supply and demand of the container shipping market, resulting in an increasingly serious shortage of containers and ships. The maritime industry has also erupted in a battle for containers, resulting in a sharp increase in freight rates. The current lack of containers and space in the shipping market has also increased the revenue and profit of shipping companies and freight forwarders. The fourth quarter is originally a low season, but as time goes by, Europe and the United States are due to the peak with the Christmas shopping season. There has been a surge in online shopping consumption, coupled with the signs of a resurgence of the epidemic, which has led to an increase in the import demand for personal protective equipment. Also, Brexit has triggered a wave of stockpiling. Retailers hope to step up replenishment before the year-end holiday. It's a hard-to-find phenomenon in the transportation market. According to statistics, in the third quarter of 2020, the volume of containers shipped from Asia to Europe has increased by 20% compared to the second quarter, and the freight rate of 20-foot dry containers from Asia to Europe has soared to a 10-year high, indicating that the shipping market has entered a prosperous period.
Sea, land, and air freight contracting is responsible for import and export of cargo, customs declarations, warehousing, and automobile freight services. Container transportation collection and warehousing refers to the transportation, lifting, unloading, and storage services of cargo and empty containers.
CONSTRUCTION
The Taiwan construction market size was valued at $75.9 billion in 2021 and is expected to achieve an AAGR of more than 2% during 2023-2026. The industry’s growth is expected to slow in 2023, as faltering demand for consumer goods in Taiwan’s largest export market – China, weighs on new construction demand. However, the Taiwanese construction industry to rebound during the forecast period supported by investments in the transport, electricity, and industrial sectors.
The Taiwan construction market research report provides a detailed analysis of the Taiwan construction industry’s growth prospects by market, project type, and construction activity. It also provides critical insights into the impact of industry trends and issues as well as an analysis of key risks and opportunities in the construction industry. Moreover, it provides an analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
