Taiwan Market Opportunities

Quentin Bai Trade and Investment Commissioner - Taiwan 澳大利亞昆士蘭州貿易暨投資駐台灣辦事處

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Taiwan at a Glance

Taiwan Queensland

Land Area 36,191 Sq km 1,730,648

Population 23.1 Million 4,513,850

Exchange rate 30.1 TWD A$1

Taiwan’s economy

• Recorded a strong recovery in 2010, mainly on the back of substantial growth in exports and private investment, Taiwan’s real GDP in2010 was 10.88% and is projected to grow by 5.06% in 2011.

• Taiwan’s exports rose by 27.3% year-on-year in February 2011 thanks to high levels of demand in China.

• Taiwan is world's 6th most competitive economy, (source: 2011 World Competitiveness Yearbook).

•Taiwan was one of Asia’s “tiger” economies, realizing high rates of growth from the 1960s to the 1990s.

• Taiwan is a world leader in the production of PCs, TVs and watches, however, Taiwan faces increasing competition from elsewhere in Asia, particularly China.

1995 2000 2005 2010

Mother Board 65% 85% 98% 95%

LCD MTR 57% 54% 70% 72%

Note Book PC - 53% 83% 95%

Foundry - 77% 69% 69%

IC Package - 34% 54% 45%

IC Testing - 35% 63% 67%

WLAN NIC - - 87% 91%

DSL CPE - - 79% 61%

Cable CPE - - 79% 93%

VoIP CPE - - 76% 84%

IP Phone - - 52% 61%

Large LCD Panel - - 46% -

WiMAX CPE - - - 72%

Small & Medium Panel

- - - 48%

LCD TV - - - 26%

Digital Still Camera - - - 47%

Source：MIC/III，Feb. 2011

Worldwide leading ICT products made by Taiwan

Industry & Transformation

INDUSTRY STRUCTURE

DEVELOPMENT STRATEGIES

STRENGTHS & POSITIONING

1960 •Labor Intensive

•Light Industries

•Import substitute

•Export Expansion: Export Process Zones

Cheap labor for the literates

1970 •Light to heavy Industries transformation

•Infrastructure development: 10 Infrastructure Projects

•R&D: ITRI established

Heavy industry pulled by the light industry

1980 •Capital Intensive

•Heavy & chemicals industries

•Develop Strategic Industries

•Establish HighTech Parks

Industry transformation:

Overseas Investment

1990 •Technology Intensive

•Capital Intensive

•Establish regulations for industry transformation

Export pulled by overseas investment

Utilities European & Japanese technologies & cheap labor in mainland

2000 •Knowledge Intensive

•ICT, Petrochemicals, Metals and Machineries

•Plans for Knowledge Intensive Industry

•Two Trillion & Twin Star Industries

•Consolidation of global resources

•Grasp China market opportunities

2010 •Knowledge Intensive

•Innovation Oriented

•Resources Consolidation

•6 emerging industries

•Planning for core industries

•Prosperous hub for Asia

•Green and peaceful

Employment %

Yr 61 71 81 91 01 07

Source: Hanlin Publishing House & IEK/MOEA

Primary Sector

Secondary Sector

Tertiary Sector

Market Opportunities

SIX emerging industries 1. biotechnology, 2. green energy, 3. travel & tourism, 4. medical care, 5. high-end agriculture, and 6. cultural & creative industries,

FOUR emerging intelligent industries 1. cloud computing, 2. smart electric vehicle, 3. intelligent green building, and 4. invention & patent industrialization

TEN key service industries 1. international & cross-strait medicine, 2. international logistics, 3. music and digital content, 4. the MICE industry, (Meeting, Incentive, Convention, and Exhibition)

5. the globalization of Taiwanese cuisine, 6. urban renewal, 7. WiMAX, (Worldwide Interoperability for Microwave Access)

8. Chinese-language e-commerce, 9. higher education exports, and 10. the development of a fund-raising platform for high-tech and innovative industries,.

Taiwan offers many value-adding opportunities via its long and well established high-tech industry capabilities, experience in commercialization, speed to market productization for Taiwan and beyond to mainland China, and

global markets.

Source; MOEA

The Gateway to China and the Region

• Economic Developments – The Economic Cooperation Framework

Agreement between Taiwan and mainland China (ECFA) - implemented

– Taiwan-Japan FTA – implemented – Asia Pacific set to become global economic

hub

• Direct sea and air links with China & the region

– Direct shipping destinations: 27 – Direct flights: 33 major cities 270/week – Cargo charter flights: 28/week – Sea transport:

• 11 harbours in Taiwan • 63 harbours in China

• The Value-Adding Gateway to China – Superior geographic location with well

developed full function logistics centre – A world leader in manufacturing and high-

tech industries – Strong R&D capabilities and Innovation – Abundant capital – Skilled Workforce – Advantageous platform for business with

mainland China – One-day Asian Business Circle

New York

Los Angeles

Honolulu

Tokyo

Sydney

Singapore

International (Direct/Indirect Flights from Taipei)

Delhi

Seoul

Frankfurt Bangkok

Beijing

Shanghai

Hong Kong Xiamen

16 Hours

8 Hours

4 Hours

2 Hours

TAIPEI

London

Auckland

Amsterdam

San Francisco

Vancouver

Direct Flight Indirect Flight Direct Flights between Taiwan & China

Guangzhou

Luxembourg

Rome

Chicago

Seattle

Ho-Chi-Min

Nanjing

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Abu Dhabi

Source: TECO

Taiwan • Australia’s 12th largest merchandise trading partner

• Queensland’s 5th largest export market – A$2.45 billion (5.7% of Queensland’s total merchandise exports and 35.9% of

Australia’s total exports to Taiwan) – Major Queensland export items included Coal, coke and briquettes, non-ferrous

metals, animal feed, meat and meat preparations

• Queensland's 6th largest source for international education and training sector – with 3,975 student enrolments as the end of December 2010, representing 44.9% of a

total students from Taiwan (8,447).

• An important tourism market – Queensland welcomed 46,000 Taiwanese visitors in 2010, with average spend of

A$2,653, higher than the average of all other visitors to Queensland (A$1,846)

• A popular source of Working Holiday Makers (WHMs) – For 09/10, there were about 6,923 young Taiwanese people joined this program to

Australia and over 35% stayed in Queensland.

• Brisbane is a popular destination for migrants from Taiwan (about 40% of all migrants from Taiwan to Australia have settled in Brisbane)

– Kaohsiung is a sister with the city of Brisbane since 1994 – Taipei is a sister city with the Gold Coast since 1982 – Tainan is a sister city with the city of the Gold Coast since 1982

Taiwan and Queensland

Queensland’s prominence in the supply of resources and primary products to Taiwan, and the significant value of Taiwan’s high-technology exports to Australia, underpin the complementary

nature of the two way trading relationship.

• Food & Agricultural Products • Education and Training • Environment & Clean technology • Biotechnology and medical devices • ICT (Games & Entertainment) • Inward Investment

Taiwan Market Focus

• A sophisticated market plugged into consumer trends in Japan and

Korea, awash in products from mainland China and well aware of market developments in America and around the globe;

• A price sensitive market for high-quality, differentiated products rather than commodity items;

• A very innovative market with improved enforcement of IPR (intellectual property rights) protection;

• A small but high value quality market competing against the lure of larger markets (mainland China and India);

• A market with deep traditional Chinese cultural characteristics yet mixed with business cultural practices from Japanese and American influence;

• A market with strong integrated capabilities and value-add services in low-cost and flexible manufacturing management.

Market Challenges

For assistance to start your export journey, please contact a Trade and Investment

Queensland staff near you

Quentin Bai

Commissioner Trade and Investment Queensland – Taiwan Team

quentin.bai@trade.qld.gov.au

Thank You! 謝謝！

謝 謝 ！