Our Market

Below provides a profile of the Asia / Pacific regional market overall, and interesting facts and information about issues important to both Taiwan and foreign executives working in Taipei.

Geographic Profile

The island of Taiwan lies some 120 kilometers off the southeastern coast of mainland China, across the Taiwan Strait, and has an area of 35,801 square kilometers (13,822.8 sq mi). The East China Sea lies to the north, the Philippine Sea to the east, the Luzon Strait directly to the south and the South China Sea to the southwest. The island is characterized by the contrast between the eastern two-thirds, consisting mostly of rugged mountains running in five ranges from the northern to the southern tip of the island, and the flat to gently rolling plains in the west that are also home to most of Taiwan's population.

Some 23 million people live on Taiwan. The major population centers are:

Taipei City – 2.6 million

Taichung City – 1 million

Kaoshiung City – 1.5 million

Languages

About 80% of the people in Taiwan and speak both Mandarin Chinese and Taiwanese (a variant of the dialect spoken in Fujian province). Mandarin Chinese is the primary language of instruction in schools; however, most spoken media is split between Mandarin and Taiwanese. The Hakka, about 15% of the population, have a distinct Hakka dialect. Aboriginal minority groups still speak their native languages, although most also speak Mandarin.

Political Structure

Emerging from the martial law era that began in 1948, Taiwan became a full-fledged and vibrant democracy in the 1990s. The government is divided into a five-branch system including the Executive, Legislative, Judicial, Control, and the Examination Yuan. The Executive Branch is lead by the President, elected every four years, and the Premier, a position appointed by the President.

Major Corporations based in Taiwan include:

• Acer
• Taiwan Semi-conductor Manufacturing Corporation
• Foxconn Technology Group
• Giant Bicycle Company
• HTC

Taiwan Economy

Known as one of the four Asia Tigers, leading multinational companies across industry sectors have long had a presence in Taiwan.

The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of foreign investment.  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.

The financial service sector has gained strength and maturity in the past several years. The Taiwan Stock Exchange is heavily traded. Retail financial services have developed most significantly with a well developed retail banking sector, asset management business, and life insurance business. Corporate banking and related financial services are well developed as well.

As Taiwanese per capita income level has risen, demand for imported, high-quality consumer goods has increased. Luxury goods suppliers from jewelry to automobiles to personal care products are well received by the Taiwanese consumer. As a result, the retail market is also dynamic and competitive.

Future development will be seen the pharmaceutical and biotechnology sectors. The government also plans to increase spending on a series of infrastructure projects.