Economy of Taiwan

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"Economy of the Republic of China" redirects here. For the economic history of the
Republic of China while based on the Chinese mainland, see Economic history of China
(1912–49).

Economy of Taiwan

Taipei, the capital city and financial centre of Taiwan

Currency New Taiwan dollar (NTD)

Fiscal year Calendar year

Trade WTO, APEC and ICC
organizations
(as Separate Customs Territory of Taiwan, Penghu, Kinmen and

Matsu)

Country group Developed/Advanced

[1]

High-income economy[2]

Statistics

Population  23,413,879 (Oct 2021)[3]

GDP  $828.6 billion (nominal; 2022)[4]

 $1.621 trillion (PPP; 2022)[4]

GDP rank 21st (nominal, 2022)

19th (PPP, 2021)

GDP growth  6.6% (2021)[5]

 3.3% (2022f)[5]

 2.8% (2023f)[5]
GDP per capita  $35,513 (nominal; 2022)[4]

 $69,500 (PPP; 2022)[4]

GDP per capita 27th (nominal, 2022)
rank
14th (PPP, 2022)
GDP by sector agriculture: 1.8%

industry: 36%

services: 62.1%

(2017 est.)[6]
Inflation (CPI) 3% (July 2022 est.)[7]

Population 1.5% (2012 est.)[6]

below poverty
line
Gini coefficient 33.6 medium (2014)[6]

Human  0.926 very high (2021)[note 1]

Development
Index
Labor force 15 million (2022 est.)[6]
Labor force by agriculture: 5%
occupation
industry: 30%

services: 65%

(2022 est.)[6]

Unemployment  3.74% (2022)[7]

Main industries Electronics, communications and information technology

products, petroleum

refining, chemicals, textiles, iron and steel, machinery, cement, food

processing, vehicles, consumer products, pharmaceuticals

Agricultural: Rice, corn, vegetables, fruit, tea; pigs, poultry,

beef, milk; fish
Natural: Small deposits of coal, natural gas, limestone, marble, and

asbestos
Ease-of-doing-  15th (very easy, 2020)[12]
business rank

External

Exports  $500 billion (2022)[13]

Export goods semiconductors, petrochemicals, automobile/auto parts, ships,

wireless communication equipment, flat panel displays, steel,

electronics, plastics, computers

Main export  China(+) 29.7%
partners
 ASEAN(+) 15.4%

 United States(+) 14.6%

 Hong Kong(+) 14.2%

 Japan(-) 6.8%

 European Union(-) 6.6%

(2020)[14]

Imports  $300 billion (2022)[13]

Import goods oil/petroleum, semiconductors, natural gas, coal, steel, computers,

wireless communication equipment, automobiles, fine chemicals,

textiles
Main import  China(+) 22.2%
partners
 Japan(-) 16.0%

 ASEAN(+) 12.5%

 United States(-) 11.4%

 European Union(-) 10.1%

 South Korea(+) 7.2%

(2020)[14]
FDI stock  $200 billion (31 December 2021 est.)[6]

 Abroad: $500 billion (31 December 2021 est.)[6]

Current account  $200 billion (2022 est.)[7]
Gross external  $300 billion (31 December 2021 est.)[6]
debt

Public finances
Public debt  29% of GDP (2022)[6][note 2]
Budget balance −0.2% (of GDP) (2022 est.)[6]

Revenues 91.62 billion (2017 est.)[6]

Expenses 100 billion (2017 est.)[6]

Credit rating Standard & Poor's:[15]

AA (Domestic)

AA (Foreign)

AAA (T&C Assessment)

Outlook: Positive[16]

Moody's:[17]

Aa3

Outlook: Positive
 Fitch:[18][19]

AA

Outlook: Positive
Foreign reserves  $547 billion (July 2022)[20]

Main data source: CIA World Fact Book

All values, unless otherwise stated, are in US dollars.

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 [21] by the International Monetary Fund. It is
gauged in the high-income economies group by the World Bank.[22] Taiwan is one of the
most technologically advanced computer microchip makers in the world.[23][24][25]

Contents

 1History
 2Data
 3Economy by region
 4Economic outlook
o 4.12007–2010 global financial crisis
 5Foreign trade
 6Industry
o 6.1Consumer goods
o 6.2Semiconductor industry
o 6.3Information technology
o 6.4Agriculture
o 6.5Energy
o 6.6Steel and heavy manufacturing
o 6.7Maritime industries
 7Largest companies
 8Labor policy
o 8.1Union policies
o 8.2Employment protection
o 8.3Active labor market policies
o 8.4Working hours
 9Science and industrial parks
 10Economic research institutes
 11Exchange rates
 12See also
 13Notes
 14References
 15Further reading
 16External links
History[edit]
Main article: Economic history of Taiwan
See also: Taiwan Miracle, Four Asian Tigers, and North–South divide in Taiwan

GDP per capita development in Taiwan.

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,[26][better source needed] and official tallies cite Taiwan as having invested a
comparable amount in Southeast Asia.
Taiwan has historically benefited from the flight of many well-educated, wealthy Chinese
to settle on the island[failed verification]: during the early Qing Dynasty, the preceding Ming
dynasty supporters survived for a brief period of time in exile in Taiwan, and in 1949, as
the Chinese Communist Party gained control of mainland China, two
million Kuomintang (KMT) supporters fled to the island.[27][28][29]
The first step towards industrialization was land reforms, a crucial step in modernizing
the economy, as it created a class of landowners with capital they could invest in future
economic endeavors. US aid was also important to stabilize 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).[30][better source needed] Between 1952 and 1961, the economy
grew by an average of 9.21% each year.[30][better source needed]
Once again, the transformation of Taiwan's economy cannot be understood without
reference to the larger geopolitical framework. Although aid was cut back in the 1970s,
it was crucial in the 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. Development of foreign trade and exports
helped absorb excess labor from the decreased importance of agriculture in the
economy.[30][better source needed] Taiwan 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
privatization of government enterprises. [30][better source needed] Technological development led to
the establishment of the Hsinchu Science Park in 1981. Investments in mainland
China spurred cross-strait trade, decreasing Taiwan's dependence on the United States
market.[30][better source needed] 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.
[31]
 Because of the financial policy[32] by the Central Bank of the Republic of China
(Taiwan) and its entrepreneurial strengths,[33] Taiwan suffered little from the financial
crisis of 1997-1999 compared to other economies in the region.

Taiwan bonds
No Inverted yield curves
  30 year
  20 year
  10 year
  5 year
  2 year

Data[edit]
The following table shows the main economic indicators in 1980–2021 (with IMF staff
estimates in 2021–2027). Inflation under 5% is in green. [34]
GDP GDP
GDP Inflation Unemploymen Government
GDP per GDP per
growth rate t debt
Year capita (in Bil.
capita
(in Bil. US$nominal) (in
(in US$ (in US$ (real) (in Percent) (in % of GDP)
US$PPP) Percent)
PPP) nominal)

1980 61.6 3,446.2 42.3 2,366.8 8.0% 19.0% 1.2% n/a

3,967. 2,691.
1981 72.2 49.0 7.1% 15.7% 1.4% n/a
2 5
4,338. 2,675.
1982 80.3 49.5 4.8% 3.0% 2.1% n/a
3 3
4,843. 2,881.
1983 91.0 54.1 9.0% 1.4% 2.7% n/a
1 7
5,441. 3,202. 10.0
1984 103.8 61.1 0.0% 2.5% n/a
4 6 %
1985 112.2 5,808. 63.6 3,293. 4.8% -0.2% 2.9% n/a
 8 9
6,541. 4,008. 11.5
1986 127.6 78.2 0.7% 2.7% n/a
8 1 %
7,475. 5,325. 12.8
1987 147.5 105.0 0.5% 2.0% n/a
6 2 %
8,264. 6,338.
1988 164.9 126.5 8.0% 1.3% 1.7% n/a
1 1
9,243. 7,575.
1989 186.3 152.7 8.7% 4.4% 1.6% n/a
6 9
9,999. 8,167.
1990 204.0 166.6 5.5% 4.1% 1.7% n/a
4 2
11,091 9,081.
1991 228.6 187.1 8.4% 3.6% 1.5% n/a
.9 9
12,171 10,715
1992 253.2 222.9 8.3% 4.5% 1.5% n/a
.2 .5
13,186 11,256
1993 276.9 236.3 6.8% 2.9% 1.5% n/a
.4 .7
14,353 12,099
1994 304.0 256.2 7.5% 4.1% 1.6% n/a
.8 .7
15,475 13,066
1995 330.5 279.1 6.5% 3.7% 1.8% n/a
.9 .1
16,602 13,588
1996 357.4 292.5 6.2% 3.1% 2.6% n/a
.1 .3
17,731 13,948
1997 385.5 303.3 6.1% 0.9% 2.7% 25.0%
.3 .7
18,526 12,767
1998 406.3 280.0 4.2% 1.7% 2.7% 23.7%
.5 .1
19,903 13,752
1999 439.7 303.8 6.7% 0.2% 2.9% 23.7%
.7 .7
21,460 14,844
2000 478.1 330.7 6.3% 1.3% 3.0% 26.2%
.9 .2
21,512 13,357
2001 482.0 299.3 -1.4% 0.0% 4.6% 30.1%
.3 .2
22,927 13,651
2002 516.3 307.4 5.5% -0.2% 5.2% 29.8%
.3 .4
24,277 14,040
2003 548.8 317.4 4.2% -0.3% 5.0% 32.2%
.2 .6
26,562 15,290
2004 602.7 346.9 7.0% 1.6% 4.4% 33.4%
.5 .3
28,767 16,427
2005 655.0 374.1 5.4% 2.3% 4.1% 34.1%
.3 .5
 31,220 16,892
2006 714.2 386.5 5.8% 0.6% 3.9% 33.3%
.7 .9
34,138 17,723
2007 783.8 406.9 6.9% 1.8% 3.9% 32.2%
.8 .7
34,951 18,053
2008 805.2 415.9 0.8% 3.5% 4.1% 33.4%
.8 .6
34,484 16,904
2009 797.3 390.8 -1.6% -0.9% 5.9% 36.7%
.6 .5
38,404 19,181 10.2
2010 889.5 444.3 1.0% 5.2% 36.9%
.3 .4 %
40,532 20,838
2011 941.4 484.0 3.7% 1.4% 4.4% 38.3%
.6 .6
41,741 21,256
2012 973.2 495.6 2.2% 1.9% 4.2% 39.2%
.3 .4
1,015. 43,435 21,945
2013 512.9 2.5% 0.8% 4.2% 38.9%
2 .5 .5
1,066. 45,494 22,844
2014 535.3 4.7% 1.2% 4.0% 37.5%
1 .3 .3
1,102. 46,911 22,753
2015 534.5 1.5% -0.3% 3.8% 35.9%
0 .0 .0
1,112. 47,272 23,070
2016 543.1 2.2% 1.4% 3.9% 35.4%
8 .3 .7
1,143. 48,500 25,061
2017 590.7 3.3% 0.6% 3.8% 34.5%
2 .8 .6
1,203. 51,005 25,825
2018 609.2 2.8% 1.4% 3.7% 33.9%
2 .0 .6
1,262. 53,476 25,903
2019 611.4 3.1% 0.6% 3.7% 32.7%
2 .0 .2
1,320. 56,037 28,404
2020 669.3 3.4% -0.2% 3.9% 32.6%
3 .8 .7
1,465. 62,696 33,143
2021 774.7 6.6% 2.0% 4.0% 28.4%
5 .1 .0
1,621. 69,500 35,513
2022 828.7 3.3% 3.1% 3.6% 24.1%
7 .0 .2
1,727. 74,066 36,833
2023 859.0 2.8% 2.2% 3.6% 22.1%
2 .5 .9
1,801. 77,231 38,662
2024 901.6 2.1% 1.4% 3.6% 20.2%
1 .7 .5
1,871. 80,247 40,673
2025 948.5 2.0% 1.4% 3.6% 18.1%
4 .1 .6
2026 1,945. 83,412 996.8 42,745 2.0% 1.4% 3.6% 16.2%
 2 .7 .0
2,022. 86,730 44,820
2027 1,045.2 2.0% 1.4% 3.6% 14.4%
6 .1 .8

Economy by region[edit]

Annual median household income in Taiwan by township/city or district in 2016

List of cities and counties in Republic of China (Taiwan) by GDP per capita in 2016[35]

Rank cities NTD US$ PPP

1 Taipei 990,292 30,699 65,539

2 Hsinchu City 853,089 26,446 56,459

- Taipei-Keelung metropolitan area 830,788 25,754 54,982

- Taipei-Keelung-Taoyuan metropolitan area 807,860 25,044 53,465

3 New Taipei 733,776 22,747 48,562

List of cities and counties in Republic of China (Taiwan) by GDP per capita in 2016[35]

Rank cities NTD US$ PPP

4 Taoyuan 731,518 22,677 48,413

- Taiwan 727,098 22,540 48,120

5 Taichung 724,905 22,472 47,975

6 Hsinchu County 724,840 22,470 47,971

7 Penghu County 709,066 21,981 46,927

8 Chiayi City 709,033 21,980 46,925

9 Keelung 706,808 21,911 46,777

10 Yilan County 700,034 21,701 46,329

11 Hualien County 693,292 21,492 45,883

12 Kaohsiung 684,260 21,212 45,285

13 Kinmen County 668,582 20,726 44,248

14 Miaoli County 657,292 20,376 43,500

15 Tainan 643,743 19,956 42,604

List of cities and counties in Republic of China (Taiwan) by GDP per capita in 2016[35]

Rank cities NTD US$ PPP

16 Taitung County 623,485 19,328 41,263

17 Changhua County 618,969 19,188 40,964

18 Yunlin County 607,776 18,841 40,223

19 Pingtung County 592,066 18,354 39,184

20 Nantou County 569,453 17,653 37,687

21 Chiayi County 562,743 17,445 37,243

Economic outlook[edit]
As of 2021, the three highest paid sectors in Taiwan include telecommunication
service, financial services and information service.[36] The economy of Taiwan ranked the
highest in Asia in the 2015 Global Entrepreneurship Index (GEI). [37] With
the technocracy-centered economic planning[38] until 1987, real growth in GDP has
averaged about 8% during the past three decades. Exports have grown since World
War II, with inflation and unemployment staying low and foreign reserves being the
world's fourth largest. Directorate-General of Budget, Accounting and
Statistics[39] and Ministry of Economic Affairs[40] 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.[41] 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.[42] 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 marginalisation in the world economy [43] 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 of economic transformation of
Taiwan by the Taiwanese government. [44]
The Indirect tax system of the economy of Taiwan comprises Gross Business Receipts
Tax (GBRT) (Gross receipts tax) and Value-added tax.[45] 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. [46]
2007–2010 global financial crisis[edit]
Taiwan recovered quickly from the global financial crisis of 2007–2010, 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. [42] Unemployment
reached levels not seen since 2003, and the economy fell 8.36% in the fourth quarter of
2008.[41] 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.[41] The stimulus package focused on infrastructure development, small and
medium-sized businesses, tax breaks for new investments, and low-income
households.[41] Boosting shipments to new overseas markets, such as Russia, Brazil,
and the Middle East was also a main goal of the stimulus. [41] The economy has since
slowly recovered; by November 2010, Taiwan's unemployment rate had fallen to a two-
year low of 4.73%,[47] and continued dropping to a 40-month low of 4.18% by the end of
2011.[48] The average salary has also been rising steadily for each month in 2010, up
1.92% from the same period in 2009.[49] Industrial output for November 2010 reached
another high, up 19.37% from a year earlier, indicating strong exports and a growing
local economy.[50] Private consumption is also increasing, with retail sales up 6.4%
compared to 2009.[51] After 10.5% economic growth in 2010, the World Bank expected
growth to continue and reach 5% for 2011.[52]
According to the National Development Council, Taiwan's economy declined in May
2019 due to the ongoing China-United States trade war.[53]

Foreign trade[edit]
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Computex Taipei, the second-largest technology trade show in the world,[54] is a global IT exhibition which
attracts many foreign investors.[55]

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.[56] 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, Japan, USA,
the European Union, and Hong Kong as top 5 trade partners in 2010.[57][58] Taiwan has
one of the world's lowest fertility rate 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.[59][60][61]
As an island economy with a lack of natural resources and comparatively lower
domestic aggregate demand, Taiwan's highly educated human resources[62] would
contribute greatly to Value added Innovation management[63][64][65][66] for
expanding[67] Taiwan's international trade.
Taiwan, as an independent economy, became a member of the World Trade
Organization (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.[68]
Taiwan is the world's largest supplier of contract computer chip manufacturing (foundry
services) and is a leading LCD panel manufacturer,[69] DRAM computer memory,
networking equipment, and consumer electronics designer and manufacturer. [42] 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.[70]
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.[57][58] 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.[57][58] 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 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 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 interest. In addition to the WTO, Taiwan is a member of the Asian
Development Bank as "Taipei, China" (a name resulting from PRC influence on the
bank) and the Asia-Pacific Economic Cooperation (APEC) forum as "Chinese Taipei"
(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 (ADB), the World Trade
Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC). Taiwan is
also an observer[71] at the Organisation for Economic Co-operation and
Development (OECD) and International Energy Agency (IEA) as Member[72] under the
acronym of Chinese Taipei,[73] and a member of International Chamber of Commerce as
Chinese Taipei.[74] Taiwan signed Economic Cooperation Framework Agreement with
People's Republic of China on 29 June 2010. Taiwan has also signed free trade pacts
with Singapore and New Zealand.[75][76] Taiwan applied for the membership in the Asian
Infrastructure Investment Bank in 2015.[77]
The Economic Cooperation Framework Agreement (ECFA) with the People's Republic
of China was signed on 29 June 2010, in Chongqing.[78][79] 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. [80] The newly signed agreement will allow
for more than 500 products made in Taiwan to enter mainland China at low or no tariffs.
[81]
 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.[82] The government is also looking to establish trade agreements with
Singapore[83] and the United States.[84]

Industry[edit]

Skyline of modern skyscrapers in Xinyi Special District, Taipei.

Kaohsiung skyline.

Taichung's 7th Redevelopment Zone

Industrial output has gradually decreased from accounting for over half of Taiwan's GDP
in 1986 to just 31% in 2002.[70] Industries have gradually moved to capital and
technology-intensive industries from more labor-intensive industries, with electronics
and information technology accounting for 35% of the industrial structure. [70] 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. [85] These industries are in
the pre-mature stage of the manufacturing industry in various global economic
competitions, and growing from the over-reliance from the original equipment
manufacturer and original design manufacturer models.[86][87] The Institute for Information
Industry[88][89] is responsible for the development of the IT and ICT industry[90] in
Taiwan. Industrial Technology Research Institute is the advanced research center for
applied technology for the economy of Taiwan.[91] 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. [92]
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. [93][94] The program seeks to
raise industry competitiveness, improve government efficiency, and improve the quality
of life, and aims to increase the number of broadband users on the island to 6 million.
[94]
 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.
[93]
 The optoelectronics industry (including flat panel displays and photovoltaics) totaled
NT$2.2 trillion in 2010, a 40% jump from 2009, representing a fifth of the global market
share.[95] The economy of Taiwan is a partner in the Global Value Chains of Electronics
Industry.[96] Electronic components and personal computer are areas of international
strength of Taiwan's Information Technology industry. [97]
Taiwan has a growing startup sector.[98][99]
Consumer goods[edit]
Taiwan is a major producer of sporting goods with NT$59.8 billion of production in 2020,
40-50% of production is indoor fitness equipment. [100] Taiwan is the global leader
in golf equipment with 80% of global production concentrated in the country. [101] The four
largest golf OEM are all Taiwanese however these firms are increasingly selling
products under their own brands.[102]
Semiconductor industry[edit]
Main article: Semiconductor industry in Taiwan
The semiconductor industry, including IC manufacturing, design, and packing, forms a
major part of Taiwan's IT industry.[103] Due to its strong capabilities in OEM wafer
manufacturing and a complete industry supply chain, Taiwan has been able to
distinguish itself from its competitors.[103][104] 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.[105] Taiwan Semiconductor Manufacturing Company (TSMC)
and United Microelectronics Corporation (UMC) are the two largest contract chipmakers
in the world,[106] while MediaTek is the fourth-largest fabless supplier globally.[107] In 1987,
TSMC pioneered the fabless foundry model, reshaping the global semiconductor
industry.[105][108] From ITRI's first 3-inch wafer fabrication plant built in 1977 [105] and the
founding of UMC in 1980,[109] the industry has developed into a world leader with 40 fabs
in operation by 2002.[103] In 2007, the semiconductor industry overtook that of the United
States, second only to Japan.[110] Although the global financial crisis from 2007 to 2010
affected sales and exports,[111] the industry has rebounded with companies posting
record profits for 2010.[112][113] 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. [114][115] By 2020 Taiwan was
the unmatched leader of the global semiconductor industry with Taiwan Semiconductor
Manufacturing Company (TSMC) alone accounting for more than 50% of the global
market.[116]
Information technology[edit]

A TSMC factory in Tainan Science Park, one of the many companies that make up Taiwan's IT industry
Taiwan's information technology industry has played an important role in the worldwide
IT market over the last 20 years.[70] In 1960, the electronics industry in Taiwan was
virtually nonexistent.[117] 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 and UMC were established.
[118]
 The industry used its industrial resources and product management experience to
cooperate closely with major international suppliers to become the research and
development hub of the Asia-Pacific region.[70] 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. [70] 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.[70] 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.[70] Twenty of the top information and communication
technology (ICT) companies have International Procurement Offices set up in Taiwan.
[93]
 As a signer of the Information Technology Agreement,[119] Taiwan phased out tariffs on
IT products since 1 January 2002.[93]
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. [120]
Agriculture[edit]

A tea plantation in Ruisui, Hualien, part of Taiwan's agricultural industry which served as the backbone for
its economic miracle

Main article: Agriculture in Taiwan

Agriculture has served as a strong foundation for Taiwan's economic miracle.[121] It
contributes 3% to GDP and the service sector makes up 73% of the economy.
After retrocession from Japan in 1945, the government announced a long-term strategy
of "developing industry through agriculture, and developing agriculture through
industry".[122] 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. Where as in 1951 agricultural production accounted for 35.8% of Taiwan's
GDP,[122] by 2013 it had been vastly surpassed and its NT$475.90 billion accounted for
only 1.69% of the GDP. As of 2013, Taiwan's agriculture was a mixture of crops
(47.88%), livestock (31.16%), fishery (20.87%) and forestry (0.09%). [123] Since its
accession into the World Trade Organization and the subsequent trade liberalization,
the government has implemented new policies to develop the sector into a more
competitive and modernized green industry. [124]
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.[124] Taiwan's agricultural population has steadily decreased from
1974 to 2002, prompting the Council of Agriculture to introduce modern farm
management, provide technical training, and offer counseling for better production and
distribution systems.[124] Promotion of farm mechanization has helped to alleviate labor
shortages while increasing productivity; both rice and sugar cane production are
completely mechanized.[125] 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 has 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.[citation needed]
Energy[edit]

Wind turbines, such as these in Qingshui, Taichung, are part of the government's efforts in renewable energy
commercialisation

Main article: Energy in Taiwan

Due to the lack of natural resources on the island, Taiwan is forced to import many of its
energy needs (currently at 98%).[126] Imported energy totaled US$11.52 billion in 2002,
accounting for 4.1% of its GDP.[127] 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.[127] Taiwan's energy consumption is dominated by crude oil &
petroleum products (48.52%), followed by coal (29.2%), natural gas (12.23%), nuclear
power (8.33%), and hydroelectric power (0.28%).[128] 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 (Taipower), 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.[129] Indonesia and Malaysia supply most of Taiwan's natural gas needs.
[129]
 It currently has three operational nuclear power plants. A fourth plant under
construction was mothballed in 2014.[130]
Although Taiwan's per capita energy use is on par with neighboring Asian countries,
[131]
 in July 2005 the Ministry of Economic Affairs announced plans to cut 170 million-tons
of carbon dioxide emissions by 2025.[129] In 2010, carbon dioxide emissions have been
reduced by 5.14 million metric tons.[132] In order to further reduce emissions, the
government also plans to increase energy efficiency by 2% each year through 2020.
[133]
 In addition, by 2015 emissions are planned to be reduced by 7% compared to 2005
levels.[133]
Taiwan is the world's 4th largest producer of solar-powered batteries and
largest LED manufacturer by volume.[132] 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.[134] The government has already built 155 sets of wind turbines capable of
producing 281.6 MW of electricity, and additional projects are planned or under
construction.[135] Renewable energy accounts for 6.8% of Taiwan's energy usage as of
2010.[133] In 2010, the green energy sector generated US$10.97 billion in production
value.[132] The government also announced plans to invest US$838 million for renewable
energy promotion and an additional US$635 million for research and development.[133]
Steel and heavy manufacturing[edit]
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 product.
Taiwan has developed a vast export trade to its most proximate neighbours in flat
products. Taiwan's stainless steel exports numbered in 2018 about 500,000 metric tons.
[136]

Taiwan is the fourth largest exporter of machine tools and machine tool components in
the world. The greater Taichung area is home to a cluster of machine tool
manufacturers.[137]
Taiwanese company Techman Robot Inc. is the world's second largest producer
of cobots.[138]
The automotive industry in Taiwan is significant with Taiwanese firms increasingly
invested in automotive electrification, 75% of Tesla, Inc.’s suppliers are Taiwanese.[139]
Maritime industries[edit]
Main article: Maritime industries of Taiwan
In 2017 Taiwan exported one hundred and sixty two yachts. [140] In 2018 Taiwan was the
fourth largest yacht building nation by feet of yacht built after Italy, The Netherlands and
Turkey.[141] Taiwan is one of the largest fishing nations on earth and the associated fish
processing industry is also significant.[142]

Largest companies[edit]
See also: List of companies of Taiwan and List of largest companies in Taiwan
According to the 2019 Forbes Global 2000 index, Taiwan's largest publicly traded
companies are:

Forbes Global 2000[143]

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

1 Hon Hai Precision 175.6 4.3 110 41.2

2 TSMC 34.2 11.6 68 222.4

3 Cathay Financial 3.5 0.1 73.0 4.1

4 Fubon Financial 21.9 1.6 250.6 14.9

5 CTBC Financial 16.7 1.2 187.2 12.8

6 Formosa Petrochemical 25.5 2 13.2 35.4

7 Formosa Chemicals 13.5 1.6 19.2 20.6

8 Nan Ya Plastics 11 1.7 18.6 19.9

9 Formosa Plastics 7.6 1.6 13.2 35.4

 Forbes Global 2000[143]

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

10 Formosa Petrochemical 25.5 2 16.3 22.3

11 China Steel 13.3 0.8 21.9 12.6

12 Chunghwa Telecom 7.1 1.2 15.2 27.7

Mega Financial
13 3.2 0.9 115.2 12.4
Holding

14 ASE Group 12.3 0.8 17.4 10.2

15 Quanta Computer 34.1 0.5 21.5 7.6

16 Uni-President 14.3 0.6 13.2 13.1

According to the 2022 Fortune Global 500 Rankings, Taiwan's largest publicly traded

companies are:

Fortune 500 2022

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

1 Hon Hai Precision 214.6 4.99 141.0 2.39

2 TSMC 56.8 21.21 134.4 446.25

3 Pegatron 45.2 0.73 24.4 5.67

 Fortune 500 2022

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

4 Compal Electronics 44.3 0.45 19.4 3.42

5 Quanta Computer 40.4 1.20 25.9 10.48

6 Cathay Financial Holding 37.5 4.99 418.3 23.90

7 Fubon Financial Holding 32.2 5.18 378.9 26.92

8 Wistron 30.9 0.37 17.9 2.75

9 CPC 30.0 -1.4 30.4 71.44

Fortune Global 500

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

1 Hon Hai Precision 214.6 4.98 141 41.2

2 TSMC 34.2 11.6 68 222.4

3 Cathay Financial 3.5 0.1 73.0 4.1

4 Fubon Financial 21.9 1.6 250.6 14.9

 Fortune Global 500

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

5 CTBC Financial 16.7 1.2 187.2 12.8

6 Formosa Petrochemical 25.5 2 13.2 35.4

7 Formosa Chemicals 13.5 1.6 19.2 20.6

8 Nan Ya Plastics 11 1.7 18.6 19.9

9 Formosa Plastics 7.6 1.6 13.2 35.4

10 Formosa Petrochemical 25.5 2 16.3 22.3

11 China Steel 13.3 0.8 21.9 12.6

12 Chunghwa Telecom 7.1 1.2 15.2 27.7

Mega Financial
13 3.2 0.9 115.2 12.4
Holding

14 ASE Group 12.3 0.8 17.4 10.2

15 Quanta Computer 34.1 0.5 21.5 7.6

16 Uni-President 14.3 0.6 13.2 13.1

 Fortune Global 500

Revenues Profit Assets Market value

Rank Company
($ billion) ($ billion) ($ billion) ($ billion)

Labor policy[edit]
Union policies[edit]
The Labor Union Laws, legislated by the Kuomintang (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.
[144]
 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. [144] Special occupational groups
such as teachers were not allowed to unionize. [145] The right to strike and collective
bargaining were also hamstrung by law.[146] The Collective Bargaining Agreement in 1930
stipulated that collective bargains were not legally valid without government approval.
[146]
 The democratization in 1986 brought dramatic changes to union participation and
policies. Between 1986 and 1992, unionized workers increased by 13%. [146] A number of
autonomous, non-official trade unions emerged, including the Taiwan Confederation of
Trade Unions (TCTU) which acquired legal recognition in 2000. [146] 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. [145] The Collective Bargaining
Agreement Act in 2008 guaranteed trade unions the power to negotiate with employers.
[146]

Employment protection[edit]
Taiwan's labor rights and employment protections increased with its democratization
progress in the 1980s, and it still has relatively high level of employment protection
comparing to other East Asia countries.[147] Implemented in August 1984, Labor
Standards Law was the first comprehensive employment protection law for Taiwan
workers.[148] 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. [148] 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.[148] Other labor issues were also
regulated by the law, including contract, wage, overtime payment, compensations for
occupational accidents, etc.[149] Penalties for employer violation were also clear in the
law, stating fines and criminal liabilities.[148] 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.[149]
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 7:2:1 ratio between employer, employee and state. [150] As far as contribution
towards social security, companies should pay at least 6% of the wages of its
employees towards the social security. [151][152][153]
Active labor market policies[edit]
Active labour market policies were carried out in Taiwan in the late 20th and early 21st
centuries, as a result of economic structural changes caused
by globalization and deindustrialization.[154] Unemployment increased and reached
approximately 5% in 2002 and 2009. [154] A set of policies were adopted to help the
unemployed and provide jobs. The Employment Insurance Act in 2002 grants income
security during unemployment, but at the same time requires beneficiaries to use all
available resources to find jobs.[155] The Multi-Faceted Job Creation Program, first
introduced in 1999, creates job in the third sector groups, especially in nonprofit
organizations.[154] It subsidizes those companies to provide vocational trainings and job
opportunities.[156] The Public Sector Temporary Employment Creation Program directly
addressed the 2008 financial crisis. 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 by that program.[146] A job creation project was also implemented to help
young people by subsidizing the hiring of young people in universities and private
companies.[156]
Working hours[edit]
On 30 July 1984, Taiwan implemented an eighty-six article Labor Standards Act under
Presidential Order No.14069.[157] 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.[144]
Article 25 of the Labor Standards Act upholds there will be no sexual discrimination in
the conditions of workers,[157] 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.[158] 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.[159]

Science and industrial parks[edit]

Hsinchu Science Park is home to many of Taiwan's IT companies

Taipei Neihu Technology Park

In order to promote industrial research and development, the government began

establishing science parks, economic zones which provide rent and utility breaks, tax
incentives and specialized lending rates to attract investment. [160] The first of these,
the Hsinchu Science Park was established in 1980 by the National Science
Council[161] with a focus on research and development in information technology
and biotechnology.[160][162] It has been called Taiwan's "Silicon Valley"[163][164] and has
expanded to six campuses covering an area of 1,140 hectares (11.4 km2).[165] Over 430
companies (including many listed on TAIEX) employing over 130,000 people are
located within the park, and paid in capital totaled US$36.10 billion in 2008.
[166]
 Both Taiwan Semiconductor Manufacturing Company and United Microelectronics
Corporation, the world's largest and second largest contract chipmakers,[106] are
headquartered within the park. Since 1980, the government has invested over US$1
billion in the park's infrastructure,[162] and further expansion for more specialized parks
have been pursued.[166] The Industrial Technology Research Institute (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). [162]
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.[160] In addition to companies, several research institutes
(including Academia Sinica) and universities have set up branches within the park with
a focus on integrated circuits (ICs), optoelectronics, and biotechnology.[166] The Central
Taiwan Science Park (CTSP) was established more recently in 2003. [167] While the CTSP
is still under development, many firms (including AU Optronics) have already moved
into the park and begun manufacturing operations. [167] Like the other parks, CTSP also
focuses on ICs, optoelectronics, and biotechnology, with the optoelectronics industry
accounting for 78% of its revenue in 2008.[166] These three science parks alone have
attracted over NT$4 trillion (US$137 billion) worth of capital inflow, [162] and in 2010 total
revenue within the parks reached NT$2.16 trillion (US$72.8 billion). [168]
The Linhai Industrial Park, established in Kaohsiung in 1960,[169] 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. [170] The Changhua Coastal Industrial Park, located in
Changhua County, is a newer industrial cluster with many different industries such as
food production, glass, textiles, and plastics.[171]
Industrial and science parks in Taiwan include:

 Central Taiwan Science Park

 Hsinchu Science Park
o Hsinchu Biomedical Science Park
 Nankang Software Park
 Neihu Science Park
 Tainan Science Park
 Southern Taiwan Science Park
o Kaohsiung Science Park
 National Biotechnology Research Park
 Shalun Smart Green Energy Science City

Economic research institutes[edit]

Institute of Economics, Academia Sinica

 Taiwan Institute of Economic Research

 Chung-Hua Institution for Economic Research
 Institute of Economics, Academia Sinica
 Industrial Technology Research Institute
 Taiwan Livestock Research Institute

Exchange rates[edit]
Current TWD exchange rates
From Google Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD CAD KRW JPY

From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD CAD KRW JPY

From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD CAD KRW JPY

From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD CAD KRW JPY

  USD / Taiwan Dollar exchange rate

  Taiwan Dollar / Chinese Yuan exchange rate

See also[edit]
 Banking in Taiwan
 Cement industry in Taiwan
 Defense industry of Taiwan
 List of banks in Taiwan
 List of Taiwanese automakers
 List of companies of Taiwan
 List of largest companies in Taiwan
 List of metropolitan areas in Taiwan
 Made in Taiwan
 Taiwan Miracle
 Taiwanese Wave
 Minimum wage in Taiwan
 Taxation in Taiwan
 Transportation in Taiwan
 Taiwan Stock Exchange (TSE)
 Textile industry in Taiwan
 1997 Asian financial crisis

Notes[edit]
1. ^ The HDI annual report compiled by the UNDP does not include Taiwan because it is no longer an
UN member state, it is neither included as part of the People's Republic of China by the UNDP when
 calculating China's figures.[8] Taiwan's Statistical Bureau calculated its HDI to be 0.926 based on
UNDP's 2010 methodology,[9][10] which would place Taiwan at 19th globally in 2021 within the 2022
UNDP report.[11]
2. ^ data for central government