ANALYSIS OF TAIWAN | FASTENER EURASIA MAGAZINE
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ANALYSIS OF TAIWAN

 All Aspects of Taiwan from A to Z 

Offical Name: Republic of China (Taiwan) ROC
Also Called: Chinese Taipei
Capital: Taipei City
Population: 23.6 million 
Surface Area: 36.197 square kilometers
GDP: 610.70 USD Billion
Real GDP Growth Rate: 5.09
Currency: New Taiwan Dollar (NTD or TWD)


 ECONOMY OF TAIWAN

Taiwan has a largely strong export economy. Major industries in Taiwan are electronics, oil refining, armament, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, electrical machinery and equipment, plastic, optical / technical and medical apparatus, medicines, organic chemicals, mineral fuels and consumer products. Producing higher-value products and then increasing their quality, finding foreign partners by small companies is one of the keys to keeping Taiwan's economy strong. 

GDP in Taiwan increased from 608.10 Billion USD in 2018 to 610.70 Billion USD in 2019. Taiwan's GDP in 2020 was approximately 19.8 trillion New Taiwan dollars. Taiwan's GDP is estimated to reach US $ 836.33 billion by 2025. 

 BUSINESS WORLD & INDUSTRIES & TRADE MARKET 

Taiwan's success in controlling the Covid-19 outbreak has helped to direct many orders from other sources by reducing possible drops in trade, and the industry continues to dominate the global market with its advanced manufacturing processes. Taiwan set a new record with exports of US $ 345.28 billion in 2020. Taiwan's main export partners include South Korea, Japan, China, the Association of Southeast Asian Nations and the United States. In 2020, Taiwan also ranks 15th in the ease of doing business ranking. 

MAIN EXPORT ITEMS: electronics, basic metals and metal products, plastics and rubber, Organic chemicals, semiconductors, petrochemicals, ships, wireless communication equipment,chopper foil, Iron, steel, computers, , machinery, Optical, technical, medical apparatus, automobile/auto parts, vehicles and mineral fuels
MAIN IMPORT ITEMS: electrical equipment, mineral fuels, machinery and computers.

Taiwan’s Top 5 Commodity Exports : Refined Petroleum – $9.7 billion , Hot-Rolled Iron – $2.6 billion, Large Flat-Rolled Stainless Steel – $2.0 billion,  Coated Flat-Rolled Iron – $2.0 billion, Other Iron Products – $1.3 billion

Taiwan’s Other Notable Exports : Integrated Circuits – $109.6 billion, Office Machine Parts – $10.5 billion, LCDs – $7.6 billion, Blank Audio Media – $6.7 billion, Semiconductor Devices – $6.7 billion.

Taiwan’s Top 5 Commodity Imports: Crude Petroleum – $20.5 billion Refined Petroleum – $12.4 billion Petroleum Gas – $7.9 billion Coal Briquettes – $6.9 billion Refined Copper – $3.3 billion 


Taiwan’s Other Notable Imports: Integrated Circuits – $40.6 billion Photo Lab Equipment – $6.7 billion Machinery Having Individual Functions – $6.3 billion Cars – $5.3 billion Office Machine Parts – $3.9 billion
 

 

 

 

 

 

 

 

 

Source: https://commodity.com/data/taiwan/

Statistically, Export Orders in January 2021; compared with the same month in 2020, export orders in January 2021 increased 49.3% to US$52.7 billion. In NT Dollars, export orders were approximately NT$1,499.0 billion in January 2021, which increased 41.3% on a yoy basis.

On the other hand, January 2021 Industrial Production Index; industrial production index increased 18.81% in January 2021 compared with the same month in 2020. Annual comparison by main industrial division, manufacturing increased 19.67%, mining & quarrying increased 17.68%, electricity & gas supply increased 8.36%, water supply increased 0.76%. 

 Manufacturing Production in Taiwan increased 19.67 percent in January of 2021 over the same month in the previous year.

Industrial production jumped 18.81 percent year-on-year in January of 2021, following an upwardly revised 10.29 percent rise in the previous month. It was the 12th consecutive month of growth in industrial activity and the strongest since last February, mainly boosted by manufacturing (19.67 percent vs 10.80 percent in December) and mining & quarrying (17.68 percent vs 13.31 percent). Output also advanced faster for electricity & gas supply (8.36 percent vs 4.39 percent) and water supply (0.76 percent vs 0.68 percent). On a seasonally adjusted monthly basis, industrial activity grew 3 percent, the biggest increase in a year. Taiwan's 2020 industrial production growth was revised upwards to 7.08 percent from an earlier 6.81 percent. (Source: Ministry of Economic Affairs (MOEA), Taiwan)

Computer Manufacturing Industry
1970s, Taiwan’s calculator industry gave birth to the computer industry. 1980s, video game engineers accidentally entered Apple II’s microcomputer world. 90s, Taiwan became the world’s notebook computer manufacturing base. After 2000, semiconductor, LCD panels let Taiwan shine again on the world stage. Based on the distribution of the information industry, the 21st century Taiwan is ranked together with Korea, Singapore and Mainland China as “highly competitive”.

The country’s highly successful manufacturing industry has specialised in R&D and designing and producing components rather than finished products, notably in the computer and smartphone industries. Only a few companies such as Acer, Asus and HTC have achieved global brand name recognition.

Machinery & Equipment Industry
Taiwan's Machinery Industry Increases Competitiveness and Continues to Expand Domestic and Abroad. Taiwan will gradually increase demand and trade at home and abroad, by consolidating the machine industry base and improving its technology. In the future, it is expected to increase the smart machinery and smart manufacturing market and accelerate the realization of the target of two trillion yuan (approximately $ 307,678,200,000.00) in output value by 2025.

 Maritime Industry of Taiwan
The maritime industries of Taiwan are a large part of Taiwan's economy. Industries of particular importance are shipbuilding, boat building, maritime transport, aquaculture, mariculture, commercial fishing, seafood processing, offshore wind power and various forms of tourism. Deep sea mining, especially of dormant hydrothermal vents, is also being considered for the future. In 2018 Taiwan was the fourth largest yacht building nation. Taiwan is also home to a number of maritime museums and maritime colleges. 

 Engineering Sector
Taiwan's Mechanical Engineering Industry Relies on Smart Technology. By resorting to “Smart Technology”, Taiwan's mechanical engineering industry aims to establish a solid position on the global markets. Artificial intelligence plays an important role in this strategy. Due to this strength as well as its competitive and broad product range, Taiwan can now stand up to the established mechanical engineering countries such as Germany, Switzerland and Italy.

 Digitalization is a high priority for the island. The digital economy is being driven forward and is making itself felt in all areas of life. The government and the Taiwan Association of Machinery Industry (Tami) are also committed to the development and production of high-quality semiconductors for AI applications.

Steel Industry
In Taiwan, the steel industry started from scrap metal refinery and ship recycling and then progressed to integrated steel mill and electric arc refinery. Taiwan steel industry has a complete upstream, midstream and downstream system that enables the independent production of a large number of steel grades, saving on very specific steel grades. Solidly completed the foundation of Taiwan steel industry and established a Complete steel industry system.

For the development of the high-value industry and in response to the competition of low-price Chinese steel, Taiwan's steel industry spurred solutions such as industrial technical upgrades and strategic investments. In order to determine the path to higher added value, Taiwan started to form a strategic R&D alliance and innovation-oriented development. 

Automotive Industry in Taiwan
With quiet diligence, this tiny island country which officially still calls itself the Republic of China, builds on its industrial success and wisely chooses the areas in which it wants to excel, including automotive industry. 

Taiwan’s automotive strategy is to replicate its successful business model for computing and achieve excellence in subcontracting - using its experience in computing for up and coming market segments such as autonomous driving in particular. Car sale campaigns in Taiwan are generally competitive and offer free gifts for customers. for example, to increase their sales Toyota distributed vacuum robots to customers, and Nissan distributed air purifiers. 

Taiwan's main annual automotive trade fair for the international automotive industry is the Taipei International Auto Parts and Accessories Show ("Taipei AMPA"). Auto part manufacturers rely on exports for most of their business. Taiwanese auto parts manufacturers excel in automation, prototyping, and have the flexibility to produce small batch orders in a short time. Automotive Research and Tesing Center (ARTC), Taiwan Auto Research Consortium (TARC) and Industrial Technology Research Institute (ITRI) support automotive, automatic components and spare parts industry.  

Taiwanese firms have increasingly invested in automotive electrification, for example Tesla Inc. 75% of their suppliers are Taiwanese. With Tesla's stock prices rising, large Taiwanese producers are also making efforts to increase their production capacity.

Members of traditional automakers' supply chains, such as Japanese and Western vendors, have little interest in electric vehicles, as electric vehicles technologies and specifications are constantly changing.This is a huge challenge for relatively inflexible manufacturers. Major international electric vehicle manufacturers have also turned to suppliers who can show flexibility and accept their business style. Taiwanese suppliers are taking this opportunity to invest, as they have the flexibility and sufficient capacity for innovation.
Taiwan is capable of producing a full lithium-ion battery. Taiwan is in a position to develop cathode materials, anode materials, insulating film and electrolytes required for lithium-ion batteries. Quality and safety are the basic principles of taiwanese automobile companies. It can take three to five years for the suppliers to be certified. For this reason, it is very difficult to replace Taiwanese companies that make up 75% of Tesla's supply chain.

 Energy & Electronics & Microtechnology Industry
The world's industry leaders and followers travel to Taipei for COMPUTEX Taipei (Taipei International Information Technology Show), which offers the latest technology. Among excited customers, visitors, and thousands of vendors, this fair has become an international platform for Taiwanese entrepreneurs to show the world what the future of smart manufacturing looks like.

Taiwan Semiconductor Manufacturing Company is located in Tavyan, the world's largest semiconductor foundry. In addition to its three science-based industrial parks, it trains a large number of talented technology and engineering graduates through its higher education centers. 

 All the elements are in place  to Taiwan’s fully developed IT ecosystem and talent pool. Taiwan has a high density of major IT companies, such as iPhone manufacturer Foxconn Technology Group. COO of Techman Robot, the company of Scott Huang, is the world's second largest joint robot manufacturer, also known as the "cobot", designed to work closely with humans on a production line since 2016.

 Besides the technology that underpins Industry 4.0, Taiwan has the manufacturing industry to build it. One of the biggest company in this sector is HIWIN, the world's second largest manufacturer of linear motion control systems. The company's products range from nuts and bolts of production lines to industrial and medical robots. 

 Taiwan's Aerospace Industry
Taiwan's aviation industry has a stable supply chain with high-end technology. There are about 150 manufacturers and 14,000 aerospace industry related employees in Taiwan.

Due to the strong development of the globally thriving aviation industry, Taiwan's aviation-related industries have also launched wider market opportunities. Taiwan's aviation industry has successfully entered the body structure, engine and interior in the global supply chain. Taiwan's aviation industry has established a supply chain system for related civil aviation products and long-term and stable international partnerships with world-renowned companies such as Boeing, Airbus, Bombardier, GE, Pratt & Whitney, Safran and Spirit Aviation. 

Cut into the European and American aviation supply chain, the aviation maintenance market has a promising future. The aviation industry is a high-tech industry with complex quality management and system integration technologies. After manufacturers enter this industry, manufacturers can obtain long-term stable production orders. 

In order to ensure flight safety and airworthiness, aircraft maintenance and repairs are in demand in the market. Taiwan, which is located in the Asia-Pacific hub, is actively expanding its aerospace maintenance business. In the field of aviation maintenance, Taiwan has the necessary infrastructure for body maintenance of various airplanes and helicopters and the refurbishment of various engine accessories. 


FASTENERS & FASTENER MARKET IN TAIWAN

 Taiwan Fastener Companies on the Rise in Europe; Fastener production is one of the most important sector for Taiwanese manufacturers. 

 FASTENER TAIWAN is the only international B2B fastener show and fastener technology and the largest fastener fair in Taiwan, serving as a trading platform for sourcing and procurement, drawing more than 430 exhibitors (using 1,200 booths) to showcase their latest products with innovative and  integrated strengths. 

Whilst Taiwanese companies target Europe by presenting themselves professionally at European fairs and events, European firms can promote themselves to the Asian market through one of the biggest fastener fairs, Fastener Taiwan. Fair is held in the north, in the city of Kaohsiung. The fair sees itself as a trading platform for purchasing and stocking. At the fair, the entire product range for the industry can be seen, as well as the entire supply chains of the Taiwan fastener industry. 

TAIWAN’S IMPORT AND EXPORT STATISTICS IN FASTENERS
Supplying markets for fasteners imported by Taiwan

 US Dollar Thousand 

Exporters

Imported value in 2015

Imported value in 2016

Imported value in 2017

Imported value in 2018

Imported value in 2019

World

134,821

130,381

131,459

152,339

160,760

Japan

64,587

60,055

57,207

65,270

66,163

USA

17,700

21,294

21,345

22,433

27,487

Germany

8,103

7,728

9,581

10,211

11,891

China

6,165

8,154

8,270

9,413

10,277

Area Nes

7,432

6,190

5,991

6,765

6,798

Vietnam

4,733

3,437

3,002

4,039

4,582

Korea

5,811

3,310

5,448

4,666

4,117

Philippines

1,999

1,410

1,772

3,758

3,510

Netherlands

1,952

1,730

1,374

3,023

3,392

Sweden

2,411

1,583

1,654

3,064

2,863

Turkey

266

226

388

1,900

2,598

France

1,151

1,147

1,148

906

2,082

Switzerland

1,645

1,462

1,762

2,292

2,081

United Kingdom

1,104

2,348

1,674

1,297

1,588

Thailand

2,598

1,419

1,300

1,630

1,548

Singapore

1,247

1,050

1,276

1,366

1,359

Czechia

894

971

1,013

1,811

1,337

Italy

1,306

1,555

2,025

2,086

1,327

Spain

542

493

584

749

636

source: ITC

 Importing markets for fasteners exported by Taiwan

US Dollar Thousand

Importers

Exported value in 2015

Exported value in 2016

Exported value in 2017

Exported value in 2018

Exported value in 2019

World

3,873,885

3,612,011

4,093,571

4,641,143

4,320,809

USA

1,450,346

1,347,363

1,522,927

1,780,754

1,755,840

Germany

336,092

339,797

395,770

453,178

392,473

Japan

194,178

182,527

207,419

230,376

241,552

Netherlands

196,762

205,374

236,845

261,434

228,026

United Kingdom

178,022

162,804

178,605

178,525

171,457

Canada

125,866

106,514

127,149

163,109

145,258

China

110,408

117,812

145,004

143,901

114,213

Mexico

73,447

70,678

81,646

95,158

97,474

Sweden

88,661

83,042

94,160

98,761

94,566

Italy

81,435

80,742

95,524

105,351

82,131

France

71,833

69,926

78,862

84,480

81,053

Thailand

64,846

61,533

66,965

77,450

69,595

Australia

70,919

62,165

67,228

80,492

69,299

Poland

58,318

54,980

60,017

71,067

67,928

Spain

52,577

55,549

60,761

73,137

64,593

Belgium

64,437

48,370

55,689

59,154

51,643

Russia

51,506

27,863

32,005

39,352

36,215

India

27,329

32,089

37,713

42,870

35,754

Vietnam

41,719

44,677

49,063

47,978

32,78

Source: ITC