Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...
is a
highly developed free-market economy
A market economy is an economic system in which the decisions regarding investment, production, and distribution to the consumers are guided by the price signals created by the forces of supply and demand. The major characteristic of a market ...
. It is the 8th largest in Asia and
21st-largest in the world by
purchasing power parity
Purchasing power parity (PPP) is a measure of the price of specific goods in different countries and is used to compare the absolute purchasing power of the countries' currency, currencies. PPP is effectively the ratio of the price of a market bask ...
, allowing Taiwan to be included in the advanced economies group by the
International Monetary Fund
The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution funded by 191 member countries, with headquarters in Washington, D.C. It is regarded as the global lender of las ...
. Taiwan is notable for its rapid economic development from an agriculture-based society to an industrialized,
high-income
A high-income economy is defined by the World Bank as a country with a gross national income per capita of US$14,005 or more in 2023, calculated using the Atlas method. While the term "high-income" is often used interchangeably with "First World" ...
country. This economic growth has been described as the
Taiwan Miracle. It is gauged in the high-income economies group by the
World Bank
The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
. Taiwan is one of the most technologically advanced
computer microchip and high-tech electronics industries makers in the world.
History

Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia. Private Taiwanese investment in mainland China is estimated to total in excess of US$150 billion, and official tallies cite Taiwan as having invested a comparable amount in Southeast Asia.
In 1949, over two million Kuomintang supporters fled to the island following the loss of
Mainland China
"Mainland China", also referred to as "the Chinese mainland", is a Geopolitics, geopolitical term defined as the territory under direct administration of the People's Republic of China (PRC) in the aftermath of the Chinese Civil War. In addit ...
in the
Chinese Civil War
The Chinese Civil War was fought between the Kuomintang-led Nationalist government, government of the Republic of China (1912–1949), Republic of China and the forces of the Chinese Communist Party (CCP). Armed conflict continued intermitt ...
.
The sudden increase in population also affected Taiwan's economy.
Facing the economic pressure, the Kuomintang regime established several economic plans and policies. The first step towards industrialization was land reforms, a crucial step in modernizing the economy, as it created a class of landowners with the capital they could invest in future economic endeavors. US aid was also important in stabilizing post-war Taiwan, and it constituted more than 30 percent of domestic investment from 1951 to 1962. These factors, together with government planning and universal education, brought rapid advancements in industry and agriculture, and living standards. The economy shifted from an agriculture-based economy (32% of GDP in 1952) to an industry-oriented economy (47% of GDP in 1986).
Between 1952 and 1961, the economy grew by an average of 9.21% each year.
Once again, the transformation of Taiwan's economy cannot be understood without reference to a larger geopolitical framework. Although aid was cut back in the 1970s, it was crucial in its formative years, spurring industrialization, and security and economic links between Taiwan and the United States were maintained. Uncertainty about the US commitment accelerated the country's shift from subsidized import-substitution in the 1950s to
export-led growth.The development of foreign trade and exports helped absorb excess labor from a decreased importance of agriculture in the economy.
Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...
moved from cheap, labor-intensive manufactures, such as textiles and toys, into an expansion of heavy industry and infrastructure in the 1970s and then to advanced electronics in the subsequent decade. By the 1980s, the economy was becoming increasingly open, and the government moved towards the privatization of government enterprises.
Technological development led to the establishment of the
Hsinchu Science Park
The Hsinchu Science Park (HSP; ) is an industrial park complex that originated as one campus straddled Hsinchu City, Hsinchu County, Chunan and Tongluo, later expanded to cover six campuses across Taiwan. It was established by the government of ...
in 1981. Investments in
mainland China
"Mainland China", also referred to as "the Chinese mainland", is a Geopolitics, geopolitical term defined as the territory under direct administration of the People's Republic of China (PRC) in the aftermath of the Chinese Civil War. In addit ...
spurred cross-strait trade, decreasing Taiwan's dependence on the United States market.
From 1981 to 1995, the economy grew at an annual rate of 7.52%, and the service sector became the largest sector at 51.67%, surpassing the industrial sector and becoming a major source of the economy's growth.
International Trade is officially assisted by
Taiwan External Trade Development Council
The Taiwan External Trade Development Council (TAITRA; ) is a non-profit government co-sponsored trade promotion organization in Taiwan. It was founded in 1970 as China External Trade Development Council (CETRA), but changed its English name in Ja ...
. Because of the financial policy by the
Central Bank of the Republic of China (Taiwan)
The Central Bank of the Republic of China (Taiwan), known from 1924 to 2007 as the Central Bank of China and still referred to under the acronym CBC, is the central bank of Taiwan.
Originally founded in 1924 in Guangzhou, the CBC was expel ...
and its entrepreneurial strengths, Taiwan suffered little from the
1997 Asian financial crisis
The 1997 Asian financial crisis gripped much of East Asia, East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide eco ...
compared to other economies in the region.
Data
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2021–2027). Inflation under 5% is in green.
Economy by region
Economic outlook
As of 2021, the three highest-paid sectors in Taiwan include
telecommunication service
A telecommunications company is a kind of electronic communications service provider, more precisely a telecommunications service provider (TSP), that provides telecommunications services such as telephony and data communications access. Many t ...
,
financial services
Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...
, and
information services. The economy of Taiwan ranked the highest in Asia in the 2015 Global Entrepreneurship Index (GEI).
With the
technocracy
Technocracy is a form of government in which decision-makers appoint knowledge experts in specific domains to provide them with advice and guidance in various areas of their policy-making responsibilities. Technocracy follows largely in the tra ...
-centered
economic planning
Economic planning is a resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Planning is a mechanism for the allocation of resources ...
until 1987, real growth in GDP has averaged about 8% during the past three decades. Exports have grown since
World War II
World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
, with inflation and unemployment staying low and foreign reserves being the world's fourth largest.
Directorate-General of Budget, Accounting and Statistics and
Ministry of Economic Affairs release major economic indicators of the economy of Taiwan.
Taiwan now faces many of the same economic issues as other developed economies. With the prospect of continued relocation of labor-intensive industries to economies with cheaper workforces, such as in mainland China, the Philippines, and Vietnam, Taiwan's future development will have to rely on further transformation to a high-technology and service-oriented economy.
In recent years, Taiwan has successfully diversified its trade markets, cutting its share of exports to the United States from 49% in 1984 to 20% in 2002. Taiwan's dependence on the United States should continue to decrease as its exports to Southeast Asia and mainland China grow, and its efforts to develop European markets produce results.
Taiwan's accession to the WTO and its desire to become an Asia-Pacific "regional operations center" are spurring further economic liberalization. The economy of Taiwan is facing economic marginalization in the world economy de-internationalization and lower salaries. This results in human resource talents seeking career opportunities elsewhere. Businesses in Taiwan suffer most from being the size of small and medium enterprises, which impedes attempts at economic transformation in Taiwan by the Taiwanese government.
The
indirect tax
An indirect tax (such as a sales tax, per unit tax, value-added tax (VAT), excise tax, consumption tax, or tariff) is a tax that is levied upon goods and services before they reach the customer who ultimately pays the indirect tax as a part of ...
system of the economy of Taiwan comprises Gross Business Receipts Tax (GBRT) (
gross receipts tax
A gross receipts tax or gross excise tax is a tax on the total gross revenues of a company, regardless of their source. A gross receipts tax is often compared to a sales tax; the difference is that a gross receipts tax is levied upon the seller o ...
) and
value-added tax
A value-added tax (VAT or goods and services tax (GST), general consumption tax (GCT)) is a consumption tax that is levied on the value added at each stage of a product's production and distribution. VAT is similar to, and is often compared wi ...
(VAT). The economy of Taiwan is ranked 15th overall in the Global Top 20 Top Destination Cities by International Overnight Visitors (2014) by the MasterCard 2014 Global Destination Cities Index.
In addition, economic inequality, as measured by the
Gini coefficient
In economics, the Gini coefficient ( ), also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income distribution, income inequality, the wealth distribution, wealth inequality, or the ...
, has been on the rise in Taiwan, rising from a value of 0.47 in 1980 to 0.61 in 2022 (before considering taxes and welfare transfers). Post-tax GINI was 0.32, similar to most other developed countries.
2008 financial crisis
Taiwan recovered quickly from the
2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
and the
Great Recession
The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009. , and its economy has been growing steadily since. Its economy faced a downturn in 2009 due to a heavy reliance on exports which in turn made it vulnerable to world markets.
Unemployment reached levels not seen since 2003, and the economy fell 8.36% in the fourth quarter of 2008.
In response, the government launched a US$5.6 billion economic stimulus package (3% of its GDP), provided financial incentives for businesses, and introduced tax breaks.
The stimulus package focused on infrastructure development, small and medium-sized businesses, tax breaks for new investments, and low-income households.
Boosting shipments to new overseas markets, such as Russia,
Brazil
Brazil, officially the Federative Republic of Brazil, is the largest country in South America. It is the world's List of countries and dependencies by area, fifth-largest country by area and the List of countries and dependencies by population ...
, and the Middle East, was also a main goal of the stimulus.
The economy has since slowly recovered; by November 2010, Taiwan's unemployment rate had fallen to a two-year low of 4.73%, and continued dropping to a 40-month low of 4.18% by the end of 2011. The average salary has also been rising steadily for each month in 2010, up 1.92% from the same period in 2009.
Industrial output for November 2010 reached another high, up 19.37% from a year earlier, indicating strong exports and a growing local economy.
Private consumption is also increasing, with retail sales up 6.4% compared to 2009. After 10.5% economic growth in 2010, the
World Bank
The World Bank is an international financial institution that provides loans and Grant (money), grants to the governments of Least developed countries, low- and Developing country, middle-income countries for the purposes of economic development ...
expected growth to continue and reach 5% for 2011.
According to the
National Development Council, Taiwan's economy declined in May 2019 due to the ongoing
China–United States trade war
An economic conflict between China and the United States has been ongoing since January 2018, when U.S. president Donald Trump began Tariffs in the first Trump administration, imposing tariffs and other trade barriers on China with the aim of fo ...
.
Foreign trade

Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years. Taiwan's economy remains export-oriented; thus, it depends on an open world trade regime and remains vulnerable to downturns in the world economy. The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s. The 1990s saw a more modest, slightly less than twofold, growth. Export composition changed from predominantly agricultural commodities to industrial goods (now 98%). The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of United States investment.
Taiwan is a member of numerous trade agreements, with
China
China, officially the People's Republic of China (PRC), is a country in East Asia. With population of China, a population exceeding 1.4 billion, it is the list of countries by population (United Nations), second-most populous country after ...
,
Japan
Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...
,
USA
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 states and a federal capital district, Washington, D.C. The 48 contiguous ...
, the
European Union
The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...
, and
Hong Kong
Hong Kong)., Legally Hong Kong, China in international treaties and organizations. is a special administrative region of China. With 7.5 million residents in a territory, Hong Kong is the fourth most densely populated region in the wor ...
as top 5 trade partners in 2010.
Taiwan has one of the world's lowest
fertility rate
The total fertility rate (TFR) of a population is the average number of children that are born to a woman over her lifetime, if they were to experience the exact current age-specific fertility rates (ASFRs) through their lifetime, and they were t ...
and high
housing prices. Labor shortages, falling domestic demand, and declining
tax revenues are concerns as Taiwan's population decline is faster than other
advanced economies
A developed country, or advanced country, is a sovereign state that has a high quality of life, developed economy, and advanced technological infrastructure relative to other less industrialized nations. Most commonly, the criteria for eval ...
.
As an island economy with a lack of
natural resources
Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest, and cultural value. ...
and comparatively lower domestic
aggregate demand
In economics, aggregate demand (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time. It is often called effective demand, though at other times this term is distinguished. This is the ...
, Taiwan's highly educated human resources would contribute greatly to
Value added
Value added is a term in economics for calculating the difference between market value of a product or service, and the sum value of its constituents. It is relatively expressed by the supply-demand curve for specific units of sale. Value added ...
Innovation management
Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 (formerl ...
for expanding Taiwan's international trade.
Taiwan, as an independent economy, became a member of the
World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
(WTO) as
Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (often shortened to "Chinese Taipei" - both names resulting from PRC interference in the WTO) in January 2002. In a 2011 report by Business Environment Risk Intelligence (BERI), Taiwan ranked third-best globally for its investment environment.
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
ASUSTeK Computer Inc. (, , , ; stylized as ASUSTeK or ASUS) is a Taiwanese Multinational corporation, multinational computer, phone hardware and electronics manufacturer headquartered in Beitou District, Taipei, Taiwan. Its products include deskto ...
,
HTC
HTC Corporation ( zh, t=宏達國際電子股份有限公司, p=Hóngdá Guójì Diànzǐ Gǔfèn Yǒuxiàn Gōngsī, first=t), or High Tech Computer Corporation (abbreviated and trading as HTC), is a Taiwanese consumer electronics corporatio ...
,
Foxconn
Hon Hai Precision Industry Co., Ltd. (), Trade name, doing business as Hon Hai Technology Group () in Taiwan, Foxconn Technology Group () in China, and Foxconn () internationally, is a Taiwanese multinational corporation, multinational electron ...
,
TSMC
Taiwan Semiconductor Manufacturing Company Limited (TSMC or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of the world's most valuable semiconductor companies, the world' ...
and
Pegatron
PEGATRON Corporation is a Taiwanese electronics manufacturing company that mainly develops computing, communications and consumer electronics for branded vendors. It also develops, designs and manufactures computer peripherals and components. ...
. Textiles are another major industrial export sector, though of declining importance due to
labor shortage
In economics, a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market. It is the opposite of an excess supply ( surplus).
Definitions
In a perfect market (one that matches a s ...
s, increasing overhead costs, land prices, and
environmental protection
Environmental protection, or environment protection, refers to the taking of measures to protecting the natural environment, prevent pollution and maintain ecological balance. Action may be taken by individuals, advocacy groups and governments. ...
.
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. In 2010, the mainland accounted for 28.0% of Taiwan's exports and 13.2% of imports.
This figure is growing rapidly as both economies become ever more interdependent. Imports from mainland China consist mostly of agricultural and industrial raw materials. Exports to the United States are mainly electronics and consumer goods. As the Taiwanese per capita income level has risen, demand for imported, high-quality consumer goods has increased. Taiwan's 2002 trade surplus with the United States was $8.70 billion.
The lack of formal
diplomatic relations
Diplomacy is the communication by representatives of state, intergovernmental, or non-governmental institutions intended to influence events in the international system.Ronald Peter Barston, ''Modern Diplomacy'', Pearson Education, 2006, p. ...
between the Republic of China (Taiwan) with Taiwan's trading partners appears not to have seriously hindered Taiwan's rapidly expanding commerce. The Republic of China maintains
cultural and trade offices in more than 60 countries with which it does not have official relations to represent Taiwanese interests. In addition to the WTO, Taiwan is a member of the
Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank to promote social and economic development in Asia. The bank is headquartered in Metro Manila, Philippines and maintains 31 field offices around the world.
The bank was establishe ...
as "Taipei, China" (a name resulting from PRC influence on the bank) and the
Asia-Pacific Economic Cooperation
Asia-Pacific Economic Cooperation (APEC ) is an inter-governmental forum for 21 member economy , economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of Association of Southeast Asia ...
(APEC) forum as "
Chinese Taipei
"Chinese Taipei" is the term used in various international organizations and tournaments for groups or delegations representing the Republic of China (ROC), a country commonly known as Taiwan.
Due to the One China principle stipulated by the ...
" (for the same reason as above). These developments reflect Taiwan's economic importance and its desire to become further integrated into the global economy.
Taiwan is a member of the
Asian Development Bank
The Asian Development Bank (ADB) is a regional development bank to promote social and economic development in Asia. The bank is headquartered in Metro Manila, Philippines and maintains 31 field offices around the world.
The bank was establishe ...
(ADB), the
World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
(WTO), and the
Asia-Pacific Economic Cooperation
Asia-Pacific Economic Cooperation (APEC ) is an inter-governmental forum for 21 member economy , economies in the Pacific Rim that promotes free trade throughout the Asia-Pacific region. Following the success of Association of Southeast Asia ...
(APEC). Taiwan is also an observer at the
Organisation for Economic Co-operation and Development
The Organisation for Economic Co-operation and Development (OECD; , OCDE) is an international organization, intergovernmental organization with 38 member countries, founded in 1961 to stimulate economic progress and international trade, wor ...
(OECD) and
International Energy Agency
The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organization, established in 1974, that provides policy recommendations, analysis and data on the global energy sector. The 31 member countries and 13 associatio ...
(IEA) as Member under the acronym of
Chinese Taipei
"Chinese Taipei" is the term used in various international organizations and tournaments for groups or delegations representing the Republic of China (ROC), a country commonly known as Taiwan.
Due to the One China principle stipulated by the ...
, and a member of
International Chamber of Commerce
The International Chamber of Commerce (ICC; French: ''Chambre de commerce internationale'') is the largest, most representative business organization in the world. ICC represents over 45 million businesses in over 170 countries who have interest ...
as Chinese Taipei. Taiwan signed
Economic Cooperation Framework Agreement
The Economic Cooperation Framework Agreement (ECFA) is a free trade agreement (FTA) between the governments of the People's Republic of China (mainland China, PRC, commonly "China") and the Republic of China (ROC, commonly "Taiwan"), that aims ...
with People's Republic of China on 29 June 2010. Taiwan has also signed free trade pacts with Singapore and New Zealand. Taiwan applied for the membership in the
Asian Infrastructure Investment Bank
The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank and international financial institution that aims to collectively improve economic and social outcomes in Asia. It is the world's second largest multi-lateral d ...
in 2015.
The
Economic Cooperation Framework Agreement
The Economic Cooperation Framework Agreement (ECFA) is a free trade agreement (FTA) between the governments of the People's Republic of China (mainland China, PRC, commonly "China") and the Republic of China (ROC, commonly "Taiwan"), that aims ...
(ECFA) with the People's Republic of China was signed on 29 June 2010, in
Chongqing
ChongqingPostal Romanization, Previously romanized as Chungking ();. is a direct-administered municipality in Southwestern China. Chongqing is one of the four direct-administered municipalities under the State Council of the People's Republi ...
.
It could potentially widen the market for Taiwan's exports. However, the true benefits and impacts brought by ECFA to Taiwan's overall economy are still in dispute. The newly signed agreement will allow for more than 500 products made in Taiwan to enter mainland China at low or no
tariff
A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...
s. As of 2021, Taiwan's exports to the People's Republic of China (including Hong Kong) totaled about US$270 billion per year, which is equivalent to more than 40% of Taiwan's total GDP. The government is also looking to establish trade agreements with Singapore and the United States.
Industry

Industrial output has gradually decreased from accounting for over half of Taiwan's GDP in 1986 to just 31% in 2002.
Industries have gradually moved to the capital and technology-intensive industries from more labor-intensive industries, with electronics and information technology accounting for 35% of the industrial structure.
Industry in Taiwan primarily consists of many small and medium-sized enterprises (SME) with fewer large enterprises. Traditional labor-intensive industries are being moved off-shore and replaced with capital and technology-intensive industries. These industries are in the pre-mature stage of the
manufacturing industry
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the
secondary sector of the economy. The term may refer to a ...
in various global economic competitions, and growing from the over-reliance from the
original equipment manufacturer and
original design manufacturer models. The
Institute for Information Industry
The Institute for Information Industry (III; zh, c=資訊工業策進會, p=Zīxùn Gōngyè Cèjìnhuì, abbreviated zh, c=資策會, p=Zīcèhuì) was established in 1979 as a Non-Governmental Organization (NGO) to support the communication ...
is responsible for the development of the
IT and
ICT industry in Taiwan.
Industrial Technology Research Institute
The Industrial Technology Research Institute (ITRI; ) is a technology research and development institution in Taiwan. It was founded in 1973 and is headquartered in Hsinchu, Hsinchu City, Taiwan, with branch offices in the United States, U.S., ...
is the advanced research center for applied technology for the economy of Taiwan. The
art industry is significant with sales worth $225.4 million made domestically in 2019. Taiwanese collectors and artists are also prominent in the global art market.
The "e-Taiwan" project launched by the government seeks to use US$1.83 billion to improve the information and communications infrastructure in Taiwan in five major areas: government, life, business, transport, and broadband.
The program seeks to raise industry competitiveness, improve government efficiency, and improve the
quality of life
Quality of life (QOL) is defined by the World Health Organization as "an individual's perception of their position in life in the context of the culture and value systems in which they live and in relation to their goals, expectations, standards ...
, and aims to increase the number of broadband users on the island to 6 million.
In 2010, Taiwan's software market grew by 7.1% to reach a value of US$4 billion, accounting for 3.3% of the Asia-Pacific region market value. The digital content production industry grew by 15% in 2009, reaching US$14.03 billion.
The
optoelectronics
Optoelectronics (or optronics) is the study and application of electronic devices and systems that find, detect and control light, usually considered a sub-field of photonics. In this context, ''light'' often includes invisible forms of radi ...
industry (including
flat panel display
A flat-panel display (FPD) is an electronic display used to display visual content such as text or images. It is present in consumer, medical, transportation, and industrial equipment.
Flat-panel displays are thin, lightweight, provide better ...
s and
photovoltaics
Photovoltaics (PV) is the conversion of light into electricity using semiconducting materials that exhibit the photovoltaic effect, a phenomenon studied in physics, photochemistry, and electrochemistry. The photovoltaic effect is commerciall ...
) totaled NT$2.2 trillion in 2010, a 40% jump from 2009, representing a fifth of the global market share. The economy of Taiwan is a partner in the Global
Value Chain
A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of Value (economics), value to an end customer. The concept comes from the field of business management and was first described ...
s of
Electronics Industry
The electronics industry is the industry (economics), industry that produces electronic devices. It emerged in the 20th century and is today one of the largest global industries. Contemporary society uses a vast array of electronic devices that ar ...
.
Electronic components
An electronic component is any basic discrete electronic device or physical entity part of an Electronics, electronic system used to affect electrons or their associated electromagnetic field, fields. Electronic components are mostly industrial ...
and personal computer are areas of international strength of Taiwan's Information Technology industry.
Taiwan has a growing
startup
A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship includes all new businesses including self-employment and businesses that do not intend to ...
sector.
Consumer goods
Taiwan is a major producer of
sporting goods
Sports equipment, also called sporting goods, are the tools, materials, apparel, and gear, which varies in shapes, size, and usage in a particular sport. It includes balls, nets, rackets, protective gears like helmets, goggles, etc. Since the p ...
with NT$59.8 billion of production in 2020, 40–50% of production is indoor fitness equipment. Taiwan is the global leader in
golf
Golf is a club-and-ball sport in which players use various Golf club, clubs to hit a Golf ball, ball into a series of holes on a golf course, course in as few strokes as possible.
Golf, unlike most ball games, cannot and does not use a standa ...
equipment with 80% of global production concentrated in the country. The four largest golf OEM are all Taiwanese, however, these firms are increasingly selling products under their own brands.
The Taiwanese
bicycle
A bicycle, also called a pedal cycle, bike, push-bike or cycle, is a human-powered transport, human-powered or motorized bicycle, motor-assisted, bicycle pedal, pedal-driven, single-track vehicle, with two bicycle wheel, wheels attached to a ...
industry is significant. Production peaked at ten million units a year in the 1980s but declined as low end production moved abroad and domestic manufactures moved upmarket.
Giant Bicycles
Giant Manufacturing Co. Ltd. (commonly known as Giant) is a Taiwanese bicycle manufacturer, recognized as the world's largest bicycle designer and manufacturer. Giant has manufacturing facilities in Taiwan, the Netherlands, China and Hungary. Th ...
and
Merida Bikes
Merida Industry Co., Ltd (MIC; ) is a Taiwan-based company with R&D headquarters in Germany that designs, manufactures, and markets bicycles globally in over 77 countries. Founded in 1972 by Ike Tseng (1932–2012), the company designs and manufa ...
are the largest Taiwanese bicycle manufacturers.
Mountain bike
A mountain bike (MTB) or mountain bicycle is a bicycle designed for off-road cycling (''mountain biking''). Mountain bikes share some similarities with other bicycles, but incorporate features designed to enhance durability and performance in r ...
s and
ebike
An electric bicycle, e-bike, electrically assisted pedal cycle, or electrically power assisted cycle is a bicycle with an integrated electric motor used to assist propulsion. Many kinds of e-bikes are available worldwide, but they generally fa ...
s make up much of contemporary production. In 2022 the bicycle industry hit a record $6 billion US in revenue.
Semiconductor industry
The
semiconductor
A semiconductor is a material with electrical conductivity between that of a conductor and an insulator. Its conductivity can be modified by adding impurities (" doping") to its crystal structure. When two regions with different doping level ...
industry, including IC manufacturing, design, and packing, forms a major part of Taiwan's IT industry.
Due to its strong capabilities in OEM wafer manufacturing and a complete industry
supply chain
A supply chain is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers, while supply chain management deals with the flow of goods in distri ...
, Taiwan has been able to distinguish itself from its competitors.
The sector output reached US$39 billion in 2009, ranking first in global market share in IC manufacturing, packaging, and testing, and second in IC design.
Taiwan Semiconductor Manufacturing Company
Taiwan Semiconductor Manufacturing Company Limited (TSMC or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of the world's most valuable semiconductor companies, the world' ...
(TSMC) and
United Microelectronics Corporation
United Microelectronics Corporation (UMC; ) is a Taiwanese company based in Hsinchu, Taiwan. It was founded as Taiwan's first semiconductor company in 1980 as a spin-off of the government-sponsored Industrial Technology Research Institute (ITRI ...
(UMC) are the two largest contract chipmakers in the world,
while
MediaTek
MediaTek Inc. (), sometimes informally abbreviated as MTK, is a Taiwanese fabless semiconductor company that designs and manufactures a range of semiconductor products, providing chips for wireless communications, high-definition television, h ...
is the fourth-largest
fabless
Fabless manufacturing is the design and sale of hardware devices and semiconductor chips while outsourcing their fabrication (or ''fab'') to a specialized manufacturer called a semiconductor foundry. These foundries are typically, but not exclu ...
supplier globally. In 1987, TSMC pioneered the
fabless foundry model, reshaping the global semiconductor industry.
From
ITRI
Itri is a small city and ''comune'' the province of Latina, Lazio, central Italy.
Itri is an agricultural centre divided in two parts by a small river, the Pontone. It lies in a valley between the Monti Aurunci and the sea, not far from the Gul ...
's first 3-inch wafer fabrication plant built in 1977
and the founding of UMC in 1980, the industry has developed into a world leader with 40 fabs in operation by 2002.
In 2007, the semiconductor industry overtook that of the United States, second only to Japan. Although the
2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
affected sales and exports, the industry has rebounded with companies posting record profits for 2010. The international industrial forecast of semiconductor manufacturing, which is the flagship industry of the economy of Taiwan that faces immense competition ahead with its American counterparts. By 2020 Taiwan was the unmatched leader of the global semiconductor industry with
Taiwan Semiconductor Manufacturing Company
Taiwan Semiconductor Manufacturing Company Limited (TSMC or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of the world's most valuable semiconductor companies, the world' ...
(TSMC) alone accounting for more than 50% of the global market.
Information technology

Taiwan's information technology industry has played an important role in the worldwide IT market over the last 20 years.
In 1960, the
electronics
Electronics is a scientific and engineering discipline that studies and applies the principles of physics to design, create, and operate devices that manipulate electrons and other Electric charge, electrically charged particles. It is a subfield ...
industry in Taiwan was virtually nonexistent. However, with the government's focus on development of expertise with high technology, along with marketing and management knowledge to establish its own industries, companies such as
TSMC
Taiwan Semiconductor Manufacturing Company Limited (TSMC or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of the world's most valuable semiconductor companies, the world' ...
and
UMC were established. The industry used its industrial resources and product management experience to cooperate closely with major international suppliers to become the
research and development
Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...
hub of the Asia-Pacific region.
The structure of the industry in Taiwan includes a handful of companies at the top along with many small and medium-sized enterprises (SME) which account for 85% of industrial output.
These SMEs usually produce products on an
original equipment manufacturer (OEM) or
original design manufacturer (ODM) basis, resulting in less resources spent on research and development.
Due to the emphasis of the OEM/ODM model, companies are usually unable to make in-depth assessments for investment, production, and marketing of new products, instead relying upon importation of key components and advanced technology from the United States and Japan.
Twenty of the top information and communication technology (ICT) companies have International Procurement Offices set up in Taiwan.
As a signer of the
Information Technology Agreement, Taiwan phased out
tariff
A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...
s on IT products since 1 January 2002.
Taiwan is a hub for global computing, telecommunications, and data management with a number of large server farms operating in the country. Google's data center in Changhua is believed to be the largest in Asia. Taiwan is well connected to the global undersea fiber optic cable network and serves as a substantial traffic interchange.
Agriculture

Agriculture has served as a strong foundation for Taiwan's
economic miracle
Economic miracle is an informal economic term for a period of dramatic economic development that is entirely unexpected or unexpectedly strong. Economic miracles have occurred in the recent histories of a number of countries, often those undergoi ...
. It contributes 3% to GDP and the service sector makes up 73% of the economy. After
retrocession
The act of cession is the assignment of property to another entity. In international law it commonly refers to land transferred by treaty. Ballentine's Law Dictionary defines cession as "a surrender; a giving up; a relinquishment of jurisdicti ...
from Japan in 1945, the government announced a long-term strategy of "developing industry through agriculture, and developing agriculture through industry".
As such, agriculture became the foundation for Taiwan's economic development during early years and served as an anchor for growth in industry and commerce. Whereas in 1951, agricultural production accounted for 35.8% of Taiwan's GDP,
by 2013, it had been vastly surpassed, and its NT$475.90 billion accounted for only 1.69% of the GDP. , Taiwan's agriculture was a mixture of crops (47.88%), livestock (31.16%), fishery (20.87%), and forestry (0.09%). Since its accession into the
World Trade Organization
The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...
and the subsequent trade liberalization, the government has implemented new policies to develop the sector into a more competitive and modernized green industry.
Although only about one-quarter of Taiwan's land area is suitable for farming, virtually all farmland is intensely cultivated, with some areas suitable for two and even three crops a year. However, increases in agricultural production have been much slower than industrial growth. Agricultural modernization has been inhibited by the small size of farms and the lack of investment in better facilities and training to develop more profitable businesses.
Taiwan's agricultural population has steadily decreased from 1974 to 2002, prompting the
Council of Agriculture
The Ministry of Agriculture (MOA; ) of Taiwan, formerly the Council of Agriculture, is the ministry under the Executive Yuan of the Republic of China (Taiwan) in charged with overseeing affairs related to agriculture, forestry, fishery, animal hu ...
to introduce modern farm management, provide technical training, and offer counseling for better production and distribution systems.
Promotion of farm
mechanization
Mechanization (or mechanisation) is the process of changing from working largely or exclusively by hand or with animals to doing that work with machinery. In an early engineering text, a machine is defined as follows:
In every fields, mechan ...
has helped to alleviate labor shortages while increasing productivity; both rice and
sugar cane
Sugarcane or sugar cane is a species of tall, Perennial plant, perennial grass (in the genus ''Saccharum'', tribe Andropogoneae) that is used for sugar Sugar industry, production. The plants are 2–6 m (6–20 ft) tall with stout, jointed, fib ...
production are completely mechanized. Taiwan's main crops are rice, sugar cane, fruits (many of them tropical), and vegetables. Although self-sufficient in rice production, Taiwan imports large amounts of wheat, mostly from the United States. Meat production and consumption have risen sharply, reflecting a high standard of living. Taiwan has exported large amounts of frozen pork, although this was affected by an outbreak of hoof and mouth disease in 1997. Other agricultural exports include fish, aquaculture, and sea products, canned and frozen vegetables, and grain products. Imports of agriculture products are expected to increase due to the WTO accession, which is opening previously protected agricultural markets.
Energy

Due to the lack of
natural resources
Natural resources are resources that are drawn from nature and used with few modifications. This includes the sources of valued characteristics such as commercial and industrial use, aesthetic value, scientific interest, and cultural value. ...
on the island, Taiwan is forced to import many of its energy needs (currently at 98%). Imported energy totaled US$11.52 billion in 2002, accounting for 4.1% of its GDP.
Although the industrial sector has traditionally been Taiwan's largest energy consumer, its share has dropped in recent years from 62% in 1986 to 58% in 2002.
Taiwan's energy consumption is dominated by crude oil & petroleum products (48.52%), followed by coal (29.2%), natural gas (12.23%),
nuclear power
Nuclear power is the use of nuclear reactions to produce electricity. Nuclear power can be obtained from nuclear fission, nuclear decay and nuclear fusion reactions. Presently, the vast majority of electricity from nuclear power is produced by ...
(8.33%), and
hydroelectric power
Hydroelectricity, or hydroelectric power, is Electricity generation, electricity generated from hydropower (water power). Hydropower supplies 15% of the world's electricity, almost 4,210 TWh in 2023, which is more than all other Renewable energ ...
(0.28%). The island is also heavily dependent on imported oil, with 72% of its crude oil coming from the Middle East in 2002. Although the
Taiwan Power Company
The Taiwan Power Company (), also known by the short name Taipower (), is a state-owned electric power industry providing electricity to Taiwan and its off-shore islands.
History
Taipower was established on 1 May 1946. Its origins can be trace ...
(Taipower), a state-owned enterprise, is in charge of providing electricity for the Taiwan area, a 1994 measure has allowed
independent power producers (IPPs) to provide up to 20% of the island's energy needs.
Indonesia
Indonesia, officially the Republic of Indonesia, is a country in Southeast Asia and Oceania, between the Indian Ocean, Indian and Pacific Ocean, Pacific oceans. Comprising over List of islands of Indonesia, 17,000 islands, including Sumatra, ...
and
Malaysia
Malaysia is a country in Southeast Asia. Featuring the Tanjung Piai, southernmost point of continental Eurasia, it is a federation, federal constitutional monarchy consisting of States and federal territories of Malaysia, 13 states and thre ...
supply most of Taiwan's natural gas needs.
It currently has three operational nuclear power plants. A fourth plant under construction was mothballed in 2014.
Although Taiwan's per capita energy use is on par with neighboring Asian countries, in July 2005 the
Ministry of Economic Affairs announced plans to cut 170 million tons of
carbon dioxide
Carbon dioxide is a chemical compound with the chemical formula . It is made up of molecules that each have one carbon atom covalent bond, covalently double bonded to two oxygen atoms. It is found in a gas state at room temperature and at norma ...
emissions by 2025.
In 2010, carbon dioxide emissions have been reduced by 5.14 million metric tons.
In order to further reduce emissions, the government also plans to increase
energy efficiency Energy efficiency may refer to:
* Energy efficiency (physics), the ratio between the useful output and input of an energy conversion process
** Electrical efficiency, useful power output per electrical power consumed
** Mechanical efficiency, a rat ...
by 2% each year through 2020.
In addition, by 2015, emissions are planned to be reduced by 7% compared to 2005 levels.
Taiwan is the world's 4th largest producer of solar-powered batteries and largest
LED
A light-emitting diode (LED) is a semiconductor device that emits light when current flows through it. Electrons in the semiconductor recombine with electron holes, releasing energy in the form of photons. The color of the light (corresp ...
manufacturer by volume.
In 2010, Taiwan had over 1.66 million square meters of
solar heat collectors installed, with an installation density that ranks it as third in the world. The government has already built 155 sets of
wind turbine
A wind turbine is a device that wind power, converts the kinetic energy of wind into electrical energy. , hundreds of thousands of list of most powerful wind turbines, large turbines, in installations known as wind farms, were generating over ...
s capable of producing 281.6 MW of electricity, and additional projects are planned or under construction. Renewable energy accounts for 6.8% of Taiwan's energy usage as of 2010.
In 2010, the
green energy
Energy is sustainable if it "meets the needs of the present without compromising the ability of future generations to meet their own needs." Definitions of sustainable energy usually look at its effects on the environment, the economy, and so ...
sector generated US$10.97 billion in production value.
The government also announced plans to invest US$838 million for
renewable energy
Renewable energy (also called green energy) is energy made from renewable resource, renewable natural resources that are replenished on a human lifetime, human timescale. The most widely used renewable energy types are solar energy, wind pow ...
promotion and an additional US$635 million for
research and development
Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...
.
Steel and heavy manufacturing
Taiwan, as of 2017, is the world's thirteenth-largest steel exporter. In 2018, Taiwan exported 12.2 million metric tons of steel, a one percent increase from 12.0 million metric tons in 2017. Taiwan's exports represented about 3 percent of all steel exported globally in 2017, based on available data. The volume of Taiwan's 2018 steel exports was one-sixth that of the world's largest exporter, China, and nearly one-third that of the second-largest exporter, Japan. In value terms, steel represented just 3.6 percent of the total amount of goods Taiwan exported in 2018. Taiwan exports steel to more than 130 countries and territories. Over the decade from 2009 to 2019, Taiwan grew its steel exports by 24%. In 2018, the US imported 300,000 metric tons of pipe and tube products. Taiwan has developed a vast export trade to its most proximate neighbors in flat products. Taiwan's
stainless steel
Stainless steel, also known as inox, corrosion-resistant steel (CRES), or rustless steel, is an iron-based alloy that contains chromium, making it resistant to rust and corrosion. Stainless steel's resistance to corrosion comes from its chromi ...
exports numbered 2018 about 500,000 metric tons.
Taiwan is the fourth largest exporter of machine tools and machine tool components in the world. The greater
Taichung
Taichung (, Wade–Giles: '), officially Taichung City, is a special municipality (Taiwan), special municipality in central Taiwan. Taichung is Taiwan's second-largest city, with more than 2.85 million residents, making it the largest city in Ce ...
area is home to a cluster of machine tool manufacturers.
Taiwanese company
Techman Robot Inc. is the world's second largest producer of
cobots.
The
automotive industry in Taiwan
Automotive industry in Taiwan refers to the automotive industry in Taiwan.
Manufacturers
In total, there are around 3,000 automotive-related companies in Taiwan. Hotai Motor accounted for 28.8% of the total cars sold in Taiwan, followed by ...
is significant, with Taiwanese firms increasingly invested in automotive electrification; 75% of
Tesla, Inc.
Tesla, Inc. ( or ) is an American multinational automotive and clean energy company. Headquartered in Austin, Texas, it designs, manufactures and sells battery electric vehicles (BEVs), stationary battery energy storage devices from h ...
’s suppliers are Taiwanese.
Maritime industries
In 2017, Taiwan exported one hundred and sixty-two yachts. In 2018 Taiwan was the fourth largest yacht building nation by feet of yacht built after Italy, The Netherlands and Turkey. Taiwan is one of the largest fishing nations on earth and the associated fish processing industry is also significant.
Tourism industry
Fashion industry
Largest companies
According to the 2019
Forbes Global 2000
The ''Forbes'' Global 2000 is an annual ranking of the top 2000 public companies in the world, published by: sales, profit, assets and market value. The list has been published annually since 2003.
By country
Forbes Global 2000 as of 2023:
...
index, Taiwan's largest publicly traded companies are:
According to the 2022
Fortune Global 500
The ''Fortune'' Global 500, also known as Global 500, is an annual ranking of the top 500 corporations worldwide as measured by revenue. The list is compiled and published annually by '' Fortune'' magazine.
Methodology
Until 1989, it listed o ...
Rankings, Taiwan's largest publicly traded companies are:
Labor policy
Union policies
The Labor Union Laws, legislated by the
Kuomintang
The Kuomintang (KMT) is a major political party in the Republic of China (Taiwan). It was the one party state, sole ruling party of the country Republic of China (1912-1949), during its rule from 1927 to 1949 in Mainland China until Retreat ...
(KMT) on the mainland, gave Taiwan workers the right to unionize. However, prior to the democratization of Taiwan, the functions of trade unions were limited under strict regulation and state
corporatism
Corporatism is an ideology and political system of interest representation and policymaking whereby Corporate group (sociology), corporate groups, such as agricultural, labour, military, business, scientific, or guild associations, come toget ...
.
Under the Labor Union Laws, workers were only allowed to be organized at the companies, which means industry level unions were forbidden. Also, only one union could exist within each company or geographical area.
Special occupational groups such as teachers were not allowed to unionize.
The right to strike and
collective bargaining
Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and labour rights, rights for ...
were also hamstrung by law.
The Collective Bargaining Agreement in 1930 stipulated that collective bargains were not legally valid without government approval.
The democratization in 1986 brought dramatic changes to union participation and policies. Between 1986 and 1992, unionized workers increased by 13%.
A number of autonomous, non-official trade unions emerged, including the
Taiwan Confederation of Trade Unions (TCTU) which acquired legal recognition in 2000.
The amendments to the Labor Union Laws and Collective Bargaining Agreement both became effective in the early 21st century. The amended Labor Union Law lifted the limitations on special occupational groups from collective representation.
The Collective Bargaining Agreement Act in 2008 guaranteed trade unions the power to negotiate with employers.
Employment protection
Taiwan's labor rights and
employment protections increased with its democratization progress in the 1980s, and it still has a relatively high level of employment protection compared to other East Asia countries. Implemented in August 1984, Labor Standards Law was the first comprehensive employment protection law for Taiwan workers.
Prior to its implementation, the Factory Act was the primary law governing labor affairs, but was ineffective in practice because of its narrow coverage of businesses and issues and absence of penalties for violation.
In contrast, Labor Standards Law covered a broader range of businesses and labor affairs and detailed penalties for its violation. It regulated a period of notice before firing employees and also required a higher level of
severance payment.
Other labor issues were also regulated by the law, including contract, wage, overtime payment, compensations for occupational accidents, etc.
Penalties for employer violation were also clear in the law, stating fines and criminal liabilities.
Council of Labor Affairs (CLA) was set up on 1 August 1987 to help with labor inspection and the enforcement of the Labor Standards Law.
In Taiwan, companies with at least a single employee have the compulsion to contribute to the insurer's employment service insurance premium. The share of labor insurance is divided into a 7:2:1 ratio between employer, employee, and state. As far as a contribution towards social security, companies should pay at least 6% of the wages of its employees towards the social security.
Active labor market policies
Active labour market policies
Active labour market policies (ALMPs) are government programmes that intervene in the labour market to help the unemployment, unemployed find work, but also for the Underemployed workers, underemployed and employees looking for better jobs. In cont ...
were carried out in Taiwan in the late 20th and early 21st centuries as a result of economic structural changes caused by
globalization
Globalization is the process of increasing interdependence and integration among the economies, markets, societies, and cultures of different countries worldwide. This is made possible by the reduction of barriers to international trade, th ...
and
deindustrialization
Deindustrialization is a process of social and economic change caused by the removal or reduction of industrial capacity or activity in a country or region, especially of heavy industry or manufacturing industry.
There are different interpr ...
.
Unemployment
Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is the proportion of people above a specified age (usually 15) not being in paid employment or self-employment but currently available for work du ...
increased and reached approximately 5% in 2002 and 2009.
A set of policies was adopted to help the unemployed and provide jobs. The Employment Insurance Act of 2002 grants income security during unemployment but, at the same time, requires beneficiaries to use all available resources to find jobs. The Multi-Faceted Job Creation Program, first introduced in 1999, creates job in the third sector groups, especially in
nonprofit organization
A nonprofit organization (NPO), also known as a nonbusiness entity, nonprofit institution, not-for-profit organization, or simply a nonprofit, is a non-governmental (private) legal entity organized and operated for a collective, public, or so ...
s.
It subsidizes those companies to provide
vocational trainings and job opportunities.
[Fen-ling Chen. "Unemployment and the Government's Role in a Risk Society: A Case Study in Taiwan". Risk and Public Policy in East Asia, edited by Raymond K.H. Chan et al., 2010, 115-131.] The Public Sector Temporary Employment Creation Program directly addressed the
2008 financial crisis
The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...
. Unlike the Multi-Faceted Job Creation Programs, the Public Sector Temporary Employment Creation Program creates jobs in the government itself. From 2008 to 2009, the government was estimated to create 102,000 job opportunities through that program.
A job creation project was also implemented to help young people by subsidizing the hiring of young people in universities and private companies.
Working hours
On 30 July 1984, Taiwan implemented an eighty-six article Labor Standards Act under Presidential Order No.14069.
The act defined the standard work week as 40 labor hours with an eight-hour limit per day, permitting an overtime-included maximum of forty-eight labor hours per week.
Article 25 of the Labor Standards Act upholds there will be no sexual discrimination in the conditions of workers,
however, because the Taiwanese culture and thus political economy traditionally "categorizes female employees as naturally marriage- and family-oriented," women are assumed to obtain employment in fields that are limited to these ideals. As a result of feminist ideals becoming more prevalent with women seeking equal work conditions in modern societies such as Taiwan, even marital status policy and immigration policy have been affected as women seek less patriarchal roles to the point where Taiwanese men have sought higher rates of transnational marriages since the 1990s.
Science and industrial parks

In order to promote industrial research and development, the government began establishing science parks, economic zones which provide rent and utility breaks,
tax incentive
A tax incentive is an aspect of a government's taxation policy designed to incentive, incentivize or encourage a particular economic activity by reducing tax payments.
Tax incentives can have both positive and negative impacts on an economy. Amo ...
s, and specialized lending rates to attract investment.
The first of these, the
Hsinchu Science Park
The Hsinchu Science Park (HSP; ) is an industrial park complex that originated as one campus straddled Hsinchu City, Hsinchu County, Chunan and Tongluo, later expanded to cover six campuses across Taiwan. It was established by the government of ...
was established in 1980 by the
National Science Council
The National Science and Technology Council (NSTC; ) is a statutory agency of Executive Yuan of the Republic of China (Taiwan) for the promotion and funding of academic research, development of science and technology and science parks. NSTC is ...
with a focus on
research and development
Research and development (R&D or R+D), known in some countries as OKB, experiment and design, is the set of innovative activities undertaken by corporations or governments in developing new services or products. R&D constitutes the first stage ...
in information technology and
biotechnology
Biotechnology is a multidisciplinary field that involves the integration of natural sciences and Engineering Science, engineering sciences in order to achieve the application of organisms and parts thereof for products and services. Specialists ...
.
It has been called Taiwan's "
Silicon Valley
Silicon Valley is a region in Northern California that is a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the geographical area of the Santa Clara Valley ...
" and has expanded to six campuses covering an area of .
Over 430 companies (including many listed on
TAIEX) employing over 130,000 people are located within the park, and
paid in capital
Paid-in capital (also paid-up capital and contributed capital) is capital that is contributed to a corporation by investors by purchase of stock from the corporation, the primary market, not by purchase of stock in the open market from ...
totaled US$36.10 billion in 2008.
Both
Taiwan Semiconductor Manufacturing Company
Taiwan Semiconductor Manufacturing Company Limited (TSMC or Taiwan Semiconductor) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of the world's most valuable semiconductor companies, the world' ...
and
United Microelectronics Corporation
United Microelectronics Corporation (UMC; ) is a Taiwanese company based in Hsinchu, Taiwan. It was founded as Taiwan's first semiconductor company in 1980 as a spin-off of the government-sponsored Industrial Technology Research Institute (ITRI ...
, the world's largest and second largest
contract
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
chipmakers,
are headquartered within the park. Since 1980, the government has invested over US$1 billion in the park's infrastructure,
and further expansion for more specialized parks have been pursued.
The
Industrial Technology Research Institute
The Industrial Technology Research Institute (ITRI; ) is a technology research and development institution in Taiwan. It was founded in 1973 and is headquartered in Hsinchu, Hsinchu City, Taiwan, with branch offices in the United States, U.S., ...
(ITRI), headquartered within the park, is the largest nonprofit research organization in Taiwan and has worked to develop applied technological research for industry, including for many of Taiwan's traditional industries (such as textiles).
Following the success of the first park, the
Southern Taiwan Science Park (STSP), consisting of the
Tainan Science Park and the
Kaohsiung Science Park, was established in 1996.
In addition to companies, several research institutes (including
Academia Sinica
Academia Sinica (AS, ; zh, t=中央研究院) is the national academy of the Taiwan, Republic of China. It is headquartered in Nangang District, Taipei, Nangang, Taipei.
Founded in Nanjing, the academy supports research activities in mathemat ...
) and universities have set up branches within the park with a focus on
integrated circuit
An integrated circuit (IC), also known as a microchip or simply chip, is a set of electronic circuits, consisting of various electronic components (such as transistors, resistors, and capacitors) and their interconnections. These components a ...
s (ICs),
optoelectronics
Optoelectronics (or optronics) is the study and application of electronic devices and systems that find, detect and control light, usually considered a sub-field of photonics. In this context, ''light'' often includes invisible forms of radi ...
, and biotechnology.
The Central Taiwan Science Park (CTSP) was established more recently in 2003.
While the CTSP is still under development, many firms (including
AU Optronics
AUO Corporation (AUO; ) is a Taiwanese company that specialises in optoelectronics. It was formed in September 2001 by the merger of Acer Display Technology, Inc. (the predecessor of AUO, established in 1996) and Unipac Optoelectronics Corpora ...
) have already moved into the park and begun manufacturing operations.
Like the other parks, CTSP also focuses on ICs, optoelectronics, and biotechnology, with the optoelectronics industry accounting for 78% of its revenue in 2008.
These three science parks alone have attracted over NT$4 trillion (US$137 billion) worth of capital inflow,
and in 2010 total revenue within the parks reached NT$2.16 trillion (US$72.8 billion).
The
Linhai Industrial Park, established in Kaohsiung in 1960, is a well-developed industrial zone with over 490 companies focusing on other industries including base metals, machinery and repairs, nonmetallic mineral products, chemical products, and food and beverage manufacturing. The
Changhua Coastal Industrial Park
Changhua Coastal Industrial Park (; simply 彰濱產業園區, Changbin Industrial Park) is located on reclaimed land in the coast of Changhua County of Taiwan, spanning Lukang Township, Xianxi Township and Shengang Township.
It is an indust ...
, located in Changhua County, is a newer industrial cluster with many different industries such as food production, glass, textiles, and plastics.
Industrial and
science park
A science park (also called a "university research park", "technology park", "technopark", "technopolis", "technopole", or a "science and technology park" TP is defined as being a property-based development that accommodates and fosters ...
s in Taiwan include:
*
Central Taiwan Science Park
The Central Taiwan Science Park (CTSP; ) is an industrial park in Taiwan.
The Central Taiwan Science Park opened in 2003. Around 53,000 people work in the park in 2022, which spans an area of 1,486 hectares. In 2021, Taiwan Semiconductor Manu ...
*
Hsinchu Science Park
The Hsinchu Science Park (HSP; ) is an industrial park complex that originated as one campus straddled Hsinchu City, Hsinchu County, Chunan and Tongluo, later expanded to cover six campuses across Taiwan. It was established by the government of ...
**
Hsinchu Biomedical Science Park
The Hsinchu Biomedical Science Park (HBSP; ) is an industrial park in Zhubei City, Hsinchu County, Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also kn ...
*
Nankang Software Park
*
Neihu Technology Park
*
Tainan Science Park
*
Southern Taiwan Science Park
**
Kaohsiung Science Park
*
National Biotechnology Research Park
*
Shalun Smart Green Energy Science City
*
Kaohsiung Software Park
Economic research institutes
*
Taiwan Institute of Economic Research
Taiwan Institute of Economic Research (TIER, ) is an incorporated non-profit research institute in Zhongshan District, Taipei, Taiwan.
History
Established on 1 September 1976, it was the first independent academic research institute in Taiwan. ...
*
Chung-Hua Institution for Economic Research
The Chung-Hua Institution for Economic Research (CIER; ) is a Taiwan-based international policy think tank for economic and industry-related research. It conducts both public research and fee-supported research.
History
After the ending of di ...
*
Institute of Economics, Academia Sinica
An institute is an organizational body created for a certain purpose. They are often research organisations (research institutes) created to do research on specific topics, or can also be a professional body.
In some countries, institutes ca ...
*
Industrial Technology Research Institute
The Industrial Technology Research Institute (ITRI; ) is a technology research and development institution in Taiwan. It was founded in 1973 and is headquartered in Hsinchu, Hsinchu City, Taiwan, with branch offices in the United States, U.S., ...
*
Taiwan Livestock Research Institute
The Taiwan Livestock Research Institute (TLRI; ) is a research center in Xinhua District, Tainan, Taiwan. It conducts research on animal breeding, physiology, nutrition and feeding techniques, animal waste treatment and utilization of byproduct ...
Exchange rates
See also
*
Banking in Taiwan
Banking in Taiwan began in earnest during the Taiwan under Japanese rule, Japanese colonial period however a number of traditional financial institutions were inherited from Taiwan’s diverse colonial and commercial past. Today Taiwan has a modern ...
*
Cement industry in Taiwan
*
Defense industry of Taiwan
*
List of banks in Taiwan
This is a list of banks in Taiwan, including the government-owned banks of the Taiwan.
Central Bank
* Central Bank of the Republic of China (Taiwan)
Governmental institutions
Existing National Institutions
* Agricultural Bank of Taiwan
* ...
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List of Taiwanese automakers
A list is a set of discrete items of information collected and set forth in some format for utility, entertainment, or other purposes. A list may be memorialized in any number of ways, including existing only in the mind of the list-maker, but ...
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List of companies of Taiwan
Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pa ...
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List of largest companies in Taiwan
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List of metropolitan areas in Taiwan
Metropolitan areas were recognized by the government of the Republic of China (Taiwan) until 2010. This was the definition of metropolitan areas used by the ROC central government.
# A metropolitan area is an economically and socially integrated ...
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Made in Taiwan
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Taiwan Miracle
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Taiwanese Wave
Taiwanese wave () is a neologism originally coined in Japan to refer to the increase in the popularity of Taiwanese popular culture in the country (including: actors, dramas, music, fashion, films), and to distinguish it from the Korean wave () ...
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Minimum wage in Taiwan
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Taxation in Taiwan
Taxes provide an important source of revenue for various levels of the Government of the Republic of China. The tax revenue of Taiwan in 2015 amounted NT$2.1 trillion.
Tax administration
The Ministry of Finance, which is part of the Executive ...
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Transportation in Taiwan
The Ministry of Transportation and Communications (Republic of China), Ministry of Transportation and Communications governs transportation in Taiwan.
Land transport
Roads
* Total length: 41,475 km (2009)
** National highway: 901&nb ...
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Taiwan Stock Exchange
The Taiwan Stock Exchange Corporation (TWSE; ) is a financial institution, located in Taipei 101, in Taipei, Taiwan. The TWSE was established in 1961 and began operating as a stock exchange on 9 February 1962. It is regulated by the Financial S ...
(TSE)
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Textile industry in Taiwan
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1997 Asian financial crisis
The 1997 Asian financial crisis gripped much of East Asia, East and Southeast Asia during the late 1990s. The crisis began in Thailand in July 1997 before spreading to several other countries with a ripple effect, raising fears of a worldwide eco ...
Notes
References
Further reading
* Taiwan ASEAN Studies Center; ASEAN Outlook Magazine; May 2013
Myanmar's Overlooked Industry Opportunities and Investment Climate by David DuByne
External links
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Statistical Information Network of the Republic of ChinaThis website serves as a national statistical portal of the Republic of China.
Taiwan Economic JournalResearch Center for Taiwan Economic Development
{{Portal bar, Taiwan, Economy
Taiwan
Taiwan, officially the Republic of China (ROC), is a country in East Asia. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...