Taiwan: Facts & Stats

ECONOMY

Industry:

Technology Industry

Over the last 20 years, Taiwan's information technology industry has played a crucial role in the worldwide IT market. Taiwan has become the third largest manufacturer of hardware products for personal computers, and the world's fourth largest supplier of semiconductor components for the IT industry.

Textiles

Taiwan's man-made fibers have earned a prominent place in the world's textile industry. In 2002, Taiwan produced over three million tons of man-made fiber, which ranked it second in the world. Polyester accounted for 80 percent of the total output and placed Taiwan as the world's second largest producer of this fiber.

Petrochemicals

Taiwan's petrochemical industry consists primarily of 50 upper and middle-stream manufacturers located in Kaohsiung. Taiwan's petrochemical production capacity, as measured by ethylene output, was able to satisfy about 94 percent of actual domestic demand in 2002.

The Formosa Plastics Corporation (FPC), the largest plastics conglomerate in Taiwan, applied for government approval to restart operations at its sixth naphtha cracking plant, which was launched several years ago in Mailiao, Yunlin County, and has been expanded since that time. The FPG began operations in the industrial zone at the end of 1998. The plant is expected to produce 3.1 million tons of ethylene annually, allowing Taiwan's ethylene to be self-sufficient once the sixth naphtha cracker expansion project is completed in 2006.

Agriculture:

Taiwan's hills and mountains comprise 75% of the area, leaving only 850-thousand hectares suitable for agriculture. However, agricultural development, advanced technology and modern production techniques have not only provided residents with abundant and quality foods, resulted in environmental protection and ecological conservation.

Taiwan's agricultural sector has faced increased pressure from rapid economic development and soaring labor costs in recent years. World Trade Organization (WTO) accession in January 2002 and subsequent trade liberalization have made the situation worse, as Taiwan fulfills its WTO commitments of opening its markets and eliminating protectionist trade measures. In light of this situation, the government has implemented new policies to develop the agricultural sector into a highly competitive and modernized green industry.

In 1998, rice was Taiwan's most valuable crop, followed by betel nuts, corn, sugar cane, mangos, water-melons, tea, pineapples, pears, and grapes. In the 2 crop seasons of 1998, Taiwan harvested 1.49 million tons of brown rice. According to the Taiwan Provincial Department of Food (TPDF), this was more than was needed to meet local demand.

Next to hogs, rice, and chickens, betel nuts rank as Taiwan's fourth most valuable farm product according to TPDF. Farmers were keen to plant betel nuts because, in a good year, the income can be 10 times higher than that from growing rice.

Taiwan produces 30 varieties of fruit, including apples, pears, peaches, citrus fruits, bananas, pineapples, lychees, longans, mangos, papayas, persimmons, loquats, and guavas. The main crops are citrus, mangos, lychees, bananas, pineapples, wax apples, and Asian pears. Pineapples and lychees are canned to satisfy domestic and international demand, while other fruits are processed into juice for local consumption.

Research & Development:

The development of science and technology requires a steady influx of resources. The majority of Taiwan’s industries are small- and medium-sized enterprises, with limited resources for R&D. Therefore, the government plays an important role in the integration of resources and in supporting budgets for research and development. In particular, a proper course of development in science and technology hinges on the government’s policies and effective use of resources.

Besides playing a leading role in the formulation of policies, the government also plays an important role in the promotion of upstream and mid-stream research, including both academic and applied research. Upstream research consists primarily of basic research by the Academia Sinica and colleges and universities under the Ministry of Education.

Mid-stream research consists primarily of applied research and technological development conducted by research units of the various agencies of the Executive Yuan and state-run enterprises, as well as special projects commissioned to research institutes of corporate bodies. The largest research unit by far is the Industrial Technology Research Institute, which has seven laboratories and three research centers.

Industrial research and development has progressed from improving animal, plant and fish species, to upgrading industrial production technology, and advancing mechanization. However, faced with limited land and other resources, these enterprises have, with government guidance, swiftly developed from traditional industries into capital intensive, high-tech industries.