Taiwan Seeks to Strengthen Position in Global Supply Chains Across Six Key Industries

At a recent meeting with international press on July 22, Lin Der-Sheng, Director General of Taiwan’s Ministry of Economic Affairs’ Industrial Development Administration, emphasized Taiwan’s ambitions to solidify its role in the global supply chain through advancements in six critical industries. Highlighting the importance of semiconductors, Lin noted that these are central to technology and national competitiveness, particularly in advanced computing, aerospace, defense, and consumer applications.

Taiwan plays a crucial role in the global semiconductor industry, leading in advanced manufacturing processes and 3D packaging. In 2023, Taiwan’s semiconductor industry ranked second globally, only behind the United States. The integrated circuit (IC) design sector was valued at $35.2 billion, while the foundry services sector was valued at $80 billion, making Taiwan the top global leader in foundry services. Additionally, outsourced semiconductor assembly and test services were valued at $18.7 billion, also ranking first globally.

The biomedical sector in Taiwan is diverse, encompassing applied biotechnology, pharmaceuticals, medical devices, digital health, and healthcare. In 2023, the biomedical industry’s total revenue was approximately $23.3 billion, supported by around 2,500 companies and institutions in innovative R&D, 2,600 companies and facilities in customizable manufacturing, and 260 centers and hospitals engaged in high-quality clinical research.

Taiwan’s machinery tool and equipment industry is largely export-oriented and therefore sensitive to global economic conditions. Conflicts, trade wars, and inflation rate hikes have recently slowed orders, impacting the industry. Despite these challenges, the sector remains robust, driven by the rising demand for end applications such as AI, IoT, electric vehicles (EVs), and aerospace. In 2023, the industry’s total output value was $3.25 billion, with 70% derived from exports.

Taiwan’s electric vehicle systems sector has a significant capacity and has integrated into the supply chains of numerous international car manufacturers. This includes automotive electronics, charging systems, motor systems, and body systems for EVs, e-buses, and e-bikes.

The bicycle production industry in Taiwan focuses on mid-to-high-end products, primarily for sports, leisure, and transportation markets in Europe and the United States. In 2023, Taiwan’s bicycle exports amounted to $4.3 billion to Europe and $6.3 billion overall, making it the second-largest bicycle producer globally.

In the textile industry, Taiwan is renowned for its functional textiles, particularly polyester and nylon fibers. As the world’s third-largest producer of these materials, Taiwan supplies 70% of the functional fabrics used by major international outdoor brands. In 2023, Taiwan’s textile industry earned about $10 billion, with $6.6 billion coming from exports, positioning it as the seventh-largest textile exporter worldwide.

Lin Der-Sheng articulated Taiwan’s vision to position itself as a pivotal player in the global supply chain through these six strategic industries, aspiring to be a stable and reliable partner. The evolution of Taiwan’s industrial links with global value chains has shifted significantly over the decades, from light industry and family workshops in the 1960s to the current focus on strategic industries since 2020.

Explore the newest supply chain news at The Supply Chain Report. Visit com for free international trade tools.

#TheSupplyChainReport #TaiwanSupplyChain #GlobalTrade #SemiconductorIndustry #BiomedicalSector #MachineryTools #ElectricVehicles #BicycleIndustry #TextileIndustry #SupplyChainNews