Taiwan Clusters
The Taiwanese clusters mainly consist of SMEs, Taiwan’s essential role in business, and also other organisations, such as research centres, universities and business incubators. They often develop a science or industrial park to fulfill the needs of a strategic sector and dynamise the regional economy. The clusters, therefore, improve the deep specialisation of Taiwan's high-tech industry and help build a great variety of businesses. Also, industrial associations play a critical role in boosting international collaboration through clusters.
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Taiwan’s ICT Industry
Current State and Development Potential
New upgrades in information and communication technology – the Internet of Things: In 2018 Taiwan achieved US$157 billion in information and communication technology exports, an increase of 3.48% compared to 2017. This was due to Taiwan’s strong industrial chain and technological edge. Moreover, our integrated manufacturing capabilities in sensors and IoT terminals gives us a global advantage in IoT industry development. With the Executive Yuan’s recent promotion of the “Asia Silicon Valley” policy and the establishment of the Asia Silicon Valley Development Agency (ASVDA), Taiwan is expected to attain a complete industry ecosystem by 2025.
Taiwan’s Strong ICT Industry Key to Success in the New 5G Era
2019 has been hailed as the year of 5G. The United States, European countries, Japan, and South Korea are all actively working to deploy 5G networks. The private research group Markets and Markets forecasts that the market scale will increase from US$700 million in 2020 to US$6.3 billion in 2025, with a compound annual growth rate (CAGR) of 55.4%. Taiwan’s long experience in ICT development and its excellent hardware manufacturing capabilities gives the island a powerful advantage in 5G and IoT development.
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Taiwan’s Medical Industry
IEK Consulting estimates that the output value for Taiwanese medical equipment was about US$3.4 billion. The aging of society has resulted in an increased demand for assistive devices and bone implants, which, along with increased orders for blood sugar meters, test strips, and contact lenses, will be major drivers of output value growth. Taiwan has three opportunities for developing smart healthcare: A complete and comprehensive electronic industry supply chain and medical system; National Health Insurance data accumulated over 24 years can be applied in AI medicine development; Proprietors and hospitals can collaborate to export solutions overseas.
Biomedical Industry Innovation and Promotion Program
Taiwan is extremely well suited for digital healthcare. Its medical environment has a high cost-to-performance ratio. Such areas as digitization and automation rely greatly on machinery integration and automated production, which dovetail with Taiwan’s IT and semi-conductors industries. Biomedical Industry Innovation and Promotion Program accelerates biomedical development.
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Taiwan’s Machinery Industry
Current State and Development Potential
According to IEK Consulting, in 2018 Taiwan’s machinery industry had an export value of US$27.4 billion. The top three export markets – China, the United States and Japan – accounted for a combined output value of NT$1.18 trillion, an increase of about 7.3% and a continued record high. A number of factors, primarily the stabilization of global oil prices and exchange rates, a recovery of the major industrial economies of Europe at the end of 2016, as well as an industrial upgrade in China leading to an expansion in automation and demand for new equipment, have contributed to remarkable growth in the output values of two industries: high-tech equipment and metal-processing machine tools. While 2017 saw declines from 2016 in a few categories (namely, industrial machinery, other machinery, and metal molds), other secondary machinery industries in Taiwan, including high-tech equipment, metal-processing machine tools, mechanical transmission components, and fluid machinery, all showed increasing output values.
The Machine Tool Industry in Taiwan Providing Global Equipment Users with the Best Solutions
Approximately 90% of Taiwan’s machine tool and component vendors can be found within a 60km radius in Greater Taichung. All aspects of the machine tool industry, from the manufacture of parts and components to the assembly of whole machine tools, takes place in close proximity here, making central Taiwan the world’s only industry cluster for machine tools and components. Because of the constant quality upgrades and price advantages this creates, Taiwanese components have become the DNA of machine tools in many countries around the world.
Upstream machine tool components include ball screws and linear slides. In particular, Taiwan has become the world’s second largest supplier of ball screws. Meanwhile, Hiwin Technologies Corp. and other companies adequately support Taiwan’s domestic market demand and mainly provide components such as spindles required in machine tool assembly.
