Taiwan’s market share in advanced industries relative to its size is more than double the world average, driven almost solely by its dominance in computers and electronics, a report issued on Wednesday by a Washington-based research institute showed.
The report by the Information Technology and Innovation Foundation measured the performance of 10 leading economies across seven key sectors in the years 1995, 2006 and 2018.
The sectors included pharmaceuticals; medicinal, chemical and botanical products; electrical equipment; machinery and equipment; motor vehicle equipment; other transport equipment; computer, electronic and optical products; and information technology and information services.
Photo: Ritchie B. Tongo, EPA-EFE
It found that in 2018, Taiwan’s market share in the industries relative to its size was 219 percent higher than the global average, followed by South Korea at 206 percent.
By contrast, Germany’s relative share of the global market in those sectors was 74 percent higher than the global average, Japan’s was 43 percent higher and China’s 34 percent higher, while the US finished below the global average.
In terms of performance, the report said that Taiwan’s global share of advanced industrial production sectors had declined slightly over the past 25 years, slipping in six of the seven industry categories.
However, in one industry category — computers, electronics and optics — Taiwan’s global share grew by 1.3 percentage points, largely due to the performance of companies such as Taiwan Semiconductor Manufacturing Co (台積電) and Hon Hai Precision Industry Co (鴻海精密).
Overall, Taiwan’s advanced industrial output was “the least diversified” of the countries in the study, with almost nine times more computer and electronics production as a share of its economy than the global average, the report said.
“Because of this, advanced industries make up more than twice the share of its economy as the global average,” despite Taiwan’s weakness in industries such as pharmaceuticals and automobiles, it said.
More broadly, the report aimed to highlight the US’ relatively weak position in a range of advanced industries that are strategically important for economic and national security.
Compared with China, whose share of global output in the industries grew from less than 4 percent in 1995 to 21.5 percent in 2018, the US’ market share fell from 24 percent to 22.5 percent, the report said.
Calling the findings “an urgent wake-up call,” it urged the US government to launch an economic “moon shot” initiative aimed at increasing its relative level of advanced industry concentration by 20 percentage points over the next decade.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS