Taiwanese exporters face their stiffest competition among themselves, with Chinese companies being their second-biggest competitors, according to a recent survey by the Ministry of Economic Affairs.
With statistics showing that 50.4 percent of Taiwanese exporters’ goods were manufactured overseas last year, the ministry conducted a poll among local companies between Feb. 15 and March 31 to understand the effect of this business model on the country’s economy.
In the survey, 2,543 companies, including Taiwan Semiconductor Manufacturing Co (台積電) and Hon Hai Precision Industry Co (鴻海精密), were asked about their operations last year and business plans for this year.
About 72.2 percent said their main competition last year came from other Taiwanese companies, while 24.9 percent said Chinese companies were their top rivals.
Meanwhile, the survey found 87 percent of Taiwanese exporters’ overseas production was based in China and Hong Kong.
Among the exporters, companies that produce information and communication technology -products, such as notebook computers and handsets, have the highest percentage — 76.5 percent — of overseas production in China, the survey showed.
With 398 companies planning to set up new production bases this year, 48.9 percent said China was their top location for such bases, while 48.6 chose Taiwan, according to the poll.
Huang Ji-shih (黃吉實), -director-general of the ministry’s statistics department, said the close figures in that segment of the survey showed that Taiwanese companies overseas were willing to return home.
The survey also found that 40.23 percent of the respondents have a research and development center and more than 90 percent of such centers that have high added-value operations are in Taiwan.
Huang said although 583 Taiwanese companies in the survey had shifted their production abroad, about 30 percent of their raw materials or components were sourced in Taiwan, reflecting close ties between local industries and overseas manufacturers.
It also shows that Taiwan still controls technology and research and development, Huang added.
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