Welcome to Taiwan!
Taiwan is located very centrally in Asia, in the midst of many of the continent’s most important business centres. The high-tech island is well known for being home to some of the world’s largest manufacturers of semiconductors (computer chips). It is estimated that 70% of the global supply of semiconductors stems from Taiwan – a factor that has also gained particular geopolitical relevance in recent years. Besides semiconductors, Taiwan is also a major producer of other electronic products and components such as laptops, tablets, computer servers, camera lenses & touch panels used in smartphones, and increasingly components for new technologies such as 5G, AI, and cloud computing.
Since the island’s big tech companies are closely linked to the local startup ecosystem and research institutions such as the internationally well known Industrial Technology Research Institute (ITRI), Taiwan can be also a good place to develop a prototype and then start commercial production. Since 2016, the Taiwanese government is providing large-scale funding to five specific innovative industries: green energy, biotechnology, smart machinery, defence, and the “Asian Silicon Valley” development plan, which aims to transition Taiwan from an important producer of ICT hardware to also a leading developer of software.
Taiwan’s main economic indicators are solid. The island is the 21st largest economy in the world, ranking no. 12 in the Global Competitiveness Report of the World Economic Forum. Taiwan is again expected to be the best performing economy of the four “Asian Tigers” this year, with a projected GDP growth of +1,5%.
According to experts, Taiwan is likely to benefit from a restructuring of global supply chains expected for the post-COVID-19 era due to its strategic location in Asia, its efficient handling of the Corona pandemic and the flexibility of its economy.
Overall, Taiwan offers itself to Austrian companies as an excellent commercial hub for their business ventures in Asia. Promising market opportunities for Austrian companies exist in particular with regard to the export of investment goods. Due to a recent reshoring trend (which brings many Taiwanese companies back to the island) and the need for Taiwan’s large tech companies to remain innovation leaders in a highly competitive global environment, there is a strong demand for investment goods in the near future. Austrian companies can use this trend to their advantage.
