While China has become the “go to” for importers, more attention should be paid to competitors from surrounding areas. This article will look at Taiwan and discuss the manufacturing options it provides.
The Tech Sector: A Taiwanese Manufacturing Specialty
Taiwan performs best in the technology sector. The country has a surprisingly amount of technological knowhow which ensures they are able to produce high-quality, innovative products.
Taiwan is home to the Hsinchu Science Park, which is often referred to as the “Silicon Valley of the Orient”. Here you can find a world leading hub consisting of over 400 technology companies, consisting of pioneers of many different technology industries. The most-high profile companies include Logitech, Acer Inc., D-Link, Philips and many others.
Owing to the small size of the island, the majority of factories and suppliers are set up close to a major shipping port. Most of the major shipping ports are either to the North or South of the island. Many major logistics companies are set up within the country, making Taiwanese manufacturing imports relatively simple to process.
China’s prices make it attractive which makes Taiwan unable to compete: manufactured Taiwanese goods generally come in around 30% more expensive. However, this means Taiwanese manufacturing products are much better quality. Other requirements are also generally more relaxed, and you should find lower minimum order quantities and receive a more reliable service.
The Taiwanese manufacturing sector is continuing to see growth, outpacing many other Asian countries. Last month, the Financial Times reported manufacturing growth was the strongest in the last 18 months: production has increased, more workers have been hired, and demand for Taiwanese manufacturing products are increasing.
It appears clear that Taiwan is a suitable location from which to source products. With a rich technological sector and a reputation for quality, the country provides plenty of potential. When compared to China, it does suffer from higher costs, as well as less choice, but these factors are not necessarily deal breakers for every business’s context. Many companies feel uneasy at the risk of having their intellectual property infringed upon when dealing with Chinese companies, whereas this issue is much less common within Taiwan.