To strengthen its position in the international supply chain and utilize its favorable trading location in East Asia, Taiwan has established five free trade zones at Taiwan Taoyuan International Airport and the harbors of Keelung, Taipei, Taichung, and Kaohsiung. To further expand trade opportunities, Taiwan has signed ATA Carnet agreements with several countries to eliminate customs paperwork for commercial travelers. Agreements on investment protection and the avoidance of double taxation have also been reached with trading partners.

• Industry clusters & complete supply chain
Taiwan: Top one ICT supplier in the world for LCD monitors,chip foundry service
packaging, cable modems, notebook PCs, Mask ROMs, LAN equipment, ADSL,
analog modems, and more
Geographic distribution of competitive industries
• Abundant skilled and educated human resources
A wide range of hi-tech talents
Low-cost labor outsourced from Thailand, the Philippines, Indonesia, and Vietnam
Strong R&D capabilitiesa
Expected R&D expenditure equivalent to 3% of GDP in 2008
About 30 R&D centers of multinational companies in Taiwan, such as Intel, HP,
DELL, Sony, IBM, Microsoft, Motorola, Dupont, NEC, among others
An emerging capital market
Taiwan Stock Exchange & Venture Capital
691 listed companies, US$523 billion market capitalization
219 listed venture capital companies
Basnks: Taiwan’s local banks are able to expand their business scale and become more internationalized through M & A
• 33 foreign banks (Citibank, Bank of America, Deutsche Bank, ABN
AMRO,Bangkok Bank, HSBC, and others) with 68 branch offices throughout Taiwan


• International alliances between local and foreign banks: Shinsei Bank and their
acquisition in Jih Sun Financial Holdings Co., Standard Chartered Bank’s
majority purchase of the Hsinchu International Bank, AIG and its stock swap for
control over Taiwan’s Central Insurance, HSBC’s purchase over Far Eastern
International Bank, GE Consumer Finance’s stock purchase over Cosmos Bank


• Efficient logistics operation
5 free ports in Taipei, Keelung, Taoyuan, Taichung, and Kaohsiung serve as
regional hubs to Northeast and Southeast Asian countries
More than 10 global distribution centers such as Fujitsu, Intel, Bayer, SmartLink,
Samancor, Applied Materials, etc
Gateway to China and the ASEAN markets
More than 50% of Taiwan’s outward FDI goes to China and the ASEAN countries:
In 2006, Taiwan was the 1st foreign investor in Vietnam, 3rd in Cambodia, Thailand
and Malaysia, 6th in Indonesia and the Philippines, and 7th in China
Sourcing and marketing ICT products through Taiwanes companies


IPOs (International Purchasing Offices) based in Taiwan generated orders totaling
US$73.3 billion in 2006, 10.89% growth compared to the previous year; top 20
IPOs registered 96.8% of total purchasing amounts
Major IPOs in Taiwan: HP, Dell, Sony, Apple, Toshiba, Lenovo, NEC, Motorola,
Samsung, Nokia, Royal Philips, Cisco, IBM, Intel, Fujitsu Siemens, Fujitsu,
Hitachi,Solectron, ViewSonic, etc.

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