Editing Economy of Taiwan

{{Short description|none}}
{{redirect|Economy of the Republic of China|the economic history of the Republic of China while based on the Chinese mainland|Economic history of China (1912–49)}}
{{Use dmy dates|date=September 2020}}
{{Use American English|date=March 2017}}
{{Infobox economy
| country = Taiwan
| image = Taipei_Skyline_2022.06.29.jpg
| image_size = 330px
| caption = [[Taipei]], the capital and financial center of Taiwan
| currency = [[New Taiwan dollar]] (TWD)
| fixed exchange = 
| year = Calendar year
| organs = [[World Trade Organization|WTO]], [[Asia-Pacific Economic Cooperation|APEC]] and [[International Chamber of Commerce|ICC]] 
| group = {{plainlist|
*[[Developed country|Developed/Advanced]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019 |archive-date=17 June 2019 |archive-url=https://web.archive.org/web/20190617091701/https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=110&sg=All+countries+%2f+Advanced+economies |url-status=live }}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019 |archive-date=28 October 2019 |archive-url=https://web.archive.org/web/20191028223324/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |url-status=dead }}</ref>
}}
| population = {{decrease}} 23,196,178 (May 2022)<ref>{{cite web|url=https://www.moi.gov.tw/News_Content.aspx?n=9&s=262660 | title=民國111年5月戶口統計資料分析 | date=10 June 2022 }}</ref>
| gdp = {{plainlist|
*{{increase}}  $814.44 billion ([[Nominal GDP|nominal]]; 2025)<ref name="IMFWEODE">{{cite web |url=https://www.imf.org/external/datamapper/profile/TWN|publisher=[[International Monetary Fund]]|website=imf.org|title=Taiwan Province of China}}</ref>
*{{increase}} $1.93 trillion ([[Purchasing power parity|PPP]]; 2025)<ref name="IMFWEODE"/>  
}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|22nd (nominal, 2024)]]
*[[List of countries by GDP (PPP)|21st (PPP, 2024)]]
}}
| per capita = {{plainlist|
*{{increase}} $34,920 (nominal; 2025)<ref name="IMFWEODE"/>
*{{increase}} $82,610 (PPP; 2025)<ref name="IMFWEODE"/>
}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|35th (nominal, 2024)]]
*[[List of countries by GDP (PPP) per capita|12th (PPP, 2024)]]
}}
| growth = {{plainlist|   
* {{Increase}} 2.5%&nbsp;(2022)<ref name="IMF_forecast">{{cite web | url=https://www.imf.org/en/Publications/WEO/Issues/2023/04/11/world-economic-outlook-april-2023 | title=The outlook is uncertain again amid financial sector turmoil, high inflation, ongoing effects of Russia's invasion of Ukraine, and three years of COVID|work=[[International Monetary Fund]]|date=April 11, 2023 }}</ref> 
* {{Increase}} 1.5%&nbsp;{{abbr|(2023f)|2023 forecast}}<ref name="IMF_forecast"/> 
* {{Increase}} 2.6%&nbsp;{{abbr|(2024f)|2024 forecast}}<ref name="IMF_forecast"/>
}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 1.8%
*[[Secondary sector of the economy|industry]]: 36%
*[[Tertiary sector of the economy|services]]: 62.1% 
*(2017 est.)<ref name="CIATW"/>}}
| components = 
| inflation = 1.66% (April 2025)<ref name="DGBASTW">{{cite web |url=https://www.stat.gov.tw/ct.asp?xItem=48520&ctNode=497&mp=4 |title=GDP: Preliminary Estimate for 2022Q1 and Outlook for 2022 |date=24 February 2022 |publisher=Directorate-General of Budget Accounting and Statistics Executive Yuan |access-date=24 July 2022 }} <!--Do not know what this URL is for: |url=https://www.dgbas.gov.tw/pointlist.asp --></ref>
| poverty = 1.5% (2012 est.)<ref name="CIATW"/>
| labor = 15 million (2022 est.)<ref name="CIATW">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/taiwan/ |title=The World Factbook |publisher=[[Central Intelligence Agency]] |website=CIA.gov |access-date=12 May 2019 }}</ref>
| average gross salary = [[List of Asian countries by average wage|NT$ 60,984]]<br /> [[US$]]2,026 per month (2024)<ref>{{cite web |title=113年全年受僱員工人數平均為845萬7千人，全年每人每月總薪資平均為60,984元 |url=https://www.stat.gov.tw/News_Content.aspx?n=2724&s=234606 |website=National Statistics |publisher=[[Directorate General of Budget, Accounting and Statistics]] |access-date=16 May 2025 |date=17 February 2025}}</ref>
| gini = 33.6 {{color|darkorange|medium}} (2014)<ref name="CIATW"/>
| hdi = {{increase}} 0.926 {{color|darkgreen|very high}} (2021){{notetag|The [[Human Development Report|HDI annual report]] compiled by the [[UNDP]] does not include Taiwan because it is no longer a UN member state, and is neither included as part of the People's Republic of China by the UNDP when calculating data for China.<ref>{{cite web|url=http://hdr.undp.org/en/content/human-development-report-2020-readers-guide|title=Human Development Report 2020: Reader's Guide|publisher= United Nation Development Program|date=2020|access-date=12 March 2021}}</ref> [[Directorate General of Budget, Accounting and Statistics|Taiwan's Statistical Bureau]] calculated its HDI for 2021 to be 0.926 based on UNDP's 2010 methodology,<ref>{{cite web|url=https://eng.stat.gov.tw/public/Data/1513164433IGBKG0IN.pdf|title=What is the human development index (HDI)? How are relevant data queried?|publisher= Directorate General of Budget, Accounting and Statistics, Executive Yuan, Taiwan (ROC)|access-date=14 March 2021}}</ref><ref>{{cite web|url=https://win.dgbas.gov.tw/eyimc/ebook/SB/statistcs-brief_opf_files/pdfs/statistcs-brief__.pdf|title=人類發展指數(Human Development Index, HDI)|publisher=Directorate General of Budget, Accounting and Statistics, Executive Yuan, Taiwan (ROC)|date=6 January 2011|access-date=13 March 2021|language=zh-tw|archive-date=14 April 2021|archive-url=https://web.archive.org/web/20210414101606/https://win.dgbas.gov.tw/eyimc/ebook/SB/statistcs-brief_opf_files/pdfs/statistcs-brief__.pdf|url-status=dead}}</ref> which would place Taiwan at 19th globally in 2021 within the 2022 UNDP report.<ref name="HDI 2021">{{cite web|url=https://ws.dgbas.gov.tw/Download.ashx?u=LzAwMS9VcGxvYWQvMC9yZWxmaWxlLzExMDIwLzIyOTU5MS9iNDdhNmYyYy1jNjY2LTRjZDAtYmQ2Ni03OGEyYjMwMmM4MzkucGRm&n=TjExMTEwMTQucGRm&icon=.pdf|title=國情統計通報（第 195 號）|publisher= [[Directorate General of Budget, Accounting and Statistics]], Executive Yuan, Taiwan (ROC)|date=14 October 2021|access-date=16 October 2022}}</ref><ref>{{cite web|url=https://eng.stat.gov.tw/ct.asp?xItem=25280&ctNode=6032&mp=5|title=National Statistics, Republic of China (Taiwan)|publisher= Directorate General of Budget, Accounting and Statistics, Executive Yuan, Taiwan (ROC)|date=14 October 2022|access-date=16 October 2022}}</ref>}}
| occupations = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 5%
*[[Secondary sector of the economy|industry]]: 30%
*[[Tertiary sector of the economy|services]]: 65% 
*(2022 est.)<ref name="CIATW"/>}}
| unemployment = {{decreasePositive}} 3.35% (2025)<ref name="DGBASTW"/>
| industries = {{plainlist|
*[[Electronics]], communications and information technology products, [[petroleum refining]], [[chemicals]], [[textiles]], [[iron]] and [[steel]], [[machinery]], [[cement]], food processing, [[vehicles]], consumer products, [[pharmaceuticals]]
*'''Agricultural''':  Rice, corn, vegetables, fruit, tea; pigs, poultry, beef, [[milk]]; fish
*'''Natural''': Small deposits of coal, [[natural gas]], [[limestone]], marble, and asbestos}}
| edbr = {{decrease}} [[Ease of doing business index#Ranking|15th (very easy, 2020)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/taiwan-china |title=Ease of Doing Business in Taiwan, China |website=Doingbusiness.org |access-date=23 January 2017 |archive-date=19 December 2016 |archive-url=https://web.archive.org/web/20161219172149/http://www.doingbusiness.org/data/exploreeconomies/taiwan-china/ |url-status=live }}</ref>
| exports = {{increase}} $475 billion (2024)<ref name="Trade Profile">{{cite web|url=https://publicinfo.trade.gov.tw/cuswebo/FSCE3000C?table=FSCE3010F|title=Export/Import Value (By Country)|publisher=[[Bureau of Foreign Trade]]|year=2024|access-date=13 January 2025}}</ref>
| export-goods = semiconductors, petrochemicals, automobile/auto parts, ships, wireless communication equipment, flat panel displays, steel, electronics, plastics, computers
| export-partners = {{Tree list}}
*{{nowrap|{{flag|China}} 31.7%}}
**{{flag|Hong Kong}} 11.3%
*{{flag|United States}} 23.4%
*{{flag|ASEAN}} 18.5%
*{{flag|European Union}} 7.0% 
*{{flag|Japan}} 5.4%
*{{flag|South Korea}} 4.4%
*(2024)<ref name="Trade Profile"/>
{{Tree list/end}}
| imports = {{increase}} $394 billion (2024)<ref name="Trade Profile"/>
| import-goods = oil/petroleum, semiconductors, natural gas, coal, steel, computers, wireless communication equipment, automobiles, fine chemicals, textiles
| import-partners = {{plainlist|
*{{flag|China}} 20.4%
*{{flag|ASEAN}} 12.5%
*{{flag|United States}} 11.8%
*{{flag|Japan}} 11.8%
*{{flag|South Korea}} 11.0%
*{{flag|European Union}} 8.9%
*{{flag|Australia}} 3.7%
*(2024)<ref name="Trade Profile"/>}}
| current account = {{increase}} $200 billion (2022 est.)<ref name="DGBASTW"/>
| FDI = {{plainlist|
*{{decrease}} $200 billion (31 December 2021 est.)<ref name="CIATW"/>
*{{decrease}} Abroad: $500 billion (31 December 2021 est.)<ref name="CIATW"/>}}
| gross external debt = {{increaseNegative}} $300 billion (31 December 2021 est.)<ref name="CIATW"/>
| debt = {{decreasePositive}} 29% of GDP (2022)<ref name="CIATW"/>{{refn|group=note|data for central government}}
| revenue = 91.62 billion (2017 est.)<ref name="CIATW"/>
| expenses = 100 billion (2017 est.)<ref name="CIATW"/>
| balance = −0.2% (of GDP) (2022 est.)<ref name="CIATW"/>
| aid = 
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title=Sovereign Ratings List |url=https://www.spglobal.com/ratings/en/research/articles/231207-sovereign-ratings-list-12938153 |publisher=S&P Global |access-date=27 April 2024}}</ref>
*AA+ (Domestic)
*AA+ (Foreign)
*AAA (T&C Assessment)
*Outlook: Stable<ref name=guardian>{{cite news |title=How Fitch, Moody's and S&P rate each country's credit rating |date=15 April 2011 |first1=Simon |last1=Rogers |first2=Ami |last2=Sedghi |work=The Guardian |url=https://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |access-date=28 May 2011 |archive-date=1 August 2013 |archive-url=https://web.archive.org/web/20130801105234/http://www.theguardian.com/news/datablog/2010/apr/30/credit-ratings-country-fitch-moodys-standard |url-status=live }}</ref>
*[[Moody's]]:<ref>{{cite web |title=Moody's - credit ratings, research, tools and analysis for the global capital markets |url=https://m.moodys.com/research-preview/Moodys-changes-Taiwans-outlook-to-positive-from-stable-affirms-Aa3--PR_433862? |publisher=Moody's |access-date=2021-08-11 |date=2021-02-24}}</ref>
*Aa3
*Outlook: Stable
*[[Fitch Group|Fitch]]:<ref name="FitchTW">{{cite web |title=Taiwan - Credit Rating |url=https://www.fitchratings.com/research/sovereigns/fitch-upgrades-taiwan-china-to-aa-outlook-stable-10-09-2021#:~:text=Fitch%20Ratings%20%2D%20Hong%20Kong%20%2D%2010,The%20Outlook%20is%20Stable. |website=fitchratings.com|access-date=11 September 2021}}</ref><ref>{{cite web |title=Taiwan Credit Rating |url=http://www.worldgovernmentbonds.com/credit-rating/taiwan/}}</ref>
*AA
*Outlook: Stable}}
| reserves = {{increase}} $568 billion (March 2024)<ref name="DGBASTW1">{{cite web |url=https://www.dgbas.gov.tw/pointlist.asp |title=Latest Indicator 2021 |publisher=Directorate-General of Budget Accounting and Statistics Executive Yuan |website=dgbas.gov.tw |date=February 2005 |access-date=22 Feb 2021 }}</ref>
| cianame = taiwan
| spelling = US
}}
[[Taiwan]] is a [[Developed country|highly developed]] [[free-market economy]]. It is the 8th largest in Asia and [[List of countries by GDP (PPP)|21st]]-largest in the world by [[purchasing power parity]], allowing Taiwan to be included in the advanced economies group by the [[International Monetary Fund]].<ref>{{cite web|url=http://www.imf.org/external/pubs/ft/weo/2015/02/weodata/weoselagr.aspx|title=Select Aggregates|website=Imf.org|access-date=27 July 2018|archive-date=14 March 2019|archive-url=https://web.archive.org/web/20190314061223/https://www.imf.org/external/pubs/ft/weo/2015/02/weodata/weoselagr.aspx|url-status=live}}</ref> Taiwan is notable for its rapid economic development from an agriculture-based society to an industrialized, [[World Bank high-income economy|high-income]] country. This economic growth has been described as the [[Taiwan Miracle]]. It is gauged in the high-income economies group by the [[World Bank]].<ref>{{cite web|url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519#High_income/|title=World Bank Country and Lending Groups – World Bank Data Help Desk|website=datahelpdesk.worldbank.org|access-date=27 July 2018|archive-url=https://web.archive.org/web/20180111190936/https://datahelpdesk.worldbank.org/knowledgebase/articles/906519#High_income/|archive-date=11 January 2018|url-status=dead}}</ref> Taiwan is one of the most technologically advanced [[Microchip|computer microchip]] and high-tech electronics industries makers in the world.<ref>{{Cite news |url=https://www.economist.com/business/2018/04/05/tsmc-is-about-to-become-the-worlds-most-advanced-chipmaker |title=TSMC is about to become the world's most advanced chipmaker |newspaper=[[The Economist]] |access-date=27 August 2019 |archive-date=1 March 2019 |archive-url=https://web.archive.org/web/20190301074432/https://www.economist.com/business/2018/04/05/tsmc-is-about-to-become-the-worlds-most-advanced-chipmaker |url-status=live }}</ref><ref>{{Cite news |url=https://www.bloomberg.com/news/articles/2018-11-28/intel-s-chipmaking-throne-is-challenged-by-a-taiwanese-upstart |title=Taiwan's TSMC Could be About to Dethrone Intel |website=[[Bloomberg News]] |date=28 November 2018 |access-date=27 August 2019 |archive-date=9 August 2019 |archive-url=https://web.archive.org/web/20190809122948/https://www.bloomberg.com/news/articles/2018-11-28/intel-s-chipmaking-throne-is-challenged-by-a-taiwanese-upstart |url-status=live }}</ref><ref>{{Cite web |url=https://in.pcmag.com/chipsets-processors/120341/tsmc-set-to-beat-intel-to-become-the-worlds-most-advanced-chipmaker |title=TSMC set to beat Intel to become the world's most advanced chipmaker - PCMag India |access-date=27 August 2019 |archive-date=12 May 2019 |archive-url=https://web.archive.org/web/20190512201148/https://in.pcmag.com/chipsets-processors/120341/tsmc-set-to-beat-intel-to-become-the-worlds-most-advanced-chipmaker |url-status=dead }}</ref>

==History==
{{Main|Taiwan Miracle}}
{{See also|Economic history of Taiwan|Four Asian Tigers|}}
[[File:GDP per capita development in Taiwan.svg|330px|left|thumb|GDP per capita development in [[Taiwan]]]]
Taiwan has transformed itself from a recipient of U.S. aid in the 1950s and early 1960s to an aid donor and major foreign investor, with investments primarily centered in Asia. Private Taiwanese investment in mainland China is estimated to total in excess of US$150 billion,<ref>[http://www.winklerpartners.com/a/comment/taiwanese-investment-in-china.php Taiwan Investment in China] {{webarchive |url=https://web.archive.org/web/20110421035236/http://www.winklerpartners.com/a/comment/taiwanese-investment-in-china.php |date=21 April 2011 }}</ref>{{Better source needed|reason=Blogs are not reliable sources.|date=November 2021}} and official tallies cite Taiwan as having invested a comparable amount in Southeast Asia.

In 1949, over two million Kuomintang supporters fled to the island following the loss of [[Mainland China]] in the [[Chinese Civil War]].<ref>{{cite book|last=Dunbabin|first=J. P. D.|title=The Cold War|publisher=Pearson Education|year=2008|page=187|isbn=978-0-582-42398-5|url=https://books.google.com/books?id=IVriqPvx7iwC&pg=PA187|quote=In 1949 Chiang Kai-shek had transferred to Taiwan the government, gold reserve, and some of the army of his Republic of China.|access-date=12 November 2015|archive-date=10 June 2016|archive-url=https://web.archive.org/web/20160610120145/https://books.google.com/books?id=IVriqPvx7iwC&pg=PA187|url-status=live}}</ref><ref>{{cite book|last=Ng|first=Franklin|title=The Taiwanese Americans|publisher=Greenwood Publishing Group|year=1998|page=10|url=https://books.google.com/books?id=lPzsB_wJQW0C&pg=PA10|isbn=9780313297625|access-date=12 November 2015|archive-date=2 January 2016|archive-url=https://web.archive.org/web/20160102065541/https://books.google.com/books?id=lPzsB_wJQW0C&pg=PA10|url-status=live}}</ref><ref name="bbctimeline-retreat">{{cite news|url=http://news.bbc.co.uk/hi/english/static/in_depth/asia_pacific/2000/taiwan_elections2000/1949_1955.stm|title=Taiwan Timeline - Retreat to Taiwan|year=2000|work=BBC News|access-date=21 June 2009|archive-date=24 June 2009|archive-url=https://web.archive.org/web/20090624190413/http://news.bbc.co.uk/hi/english/static/in_depth/asia_pacific/2000/taiwan_elections2000/1949_1955.stm|url-status=live}}</ref> The sudden increase in population also affected Taiwan's economy.

Facing the economic pressure, the Kuomintang regime established several economic plans and policies. The first step towards industrialization was land reforms, a crucial step in modernizing the economy, as it created a class of landowners with the capital they could invest in future economic endeavors. US aid was also important in stabilizing post-war Taiwan, and it constituted more than 30 percent of domestic investment from 1951 to 1962. These factors, together with government planning and universal education, brought rapid advancements in industry and agriculture, and living standards. The economy shifted from an agriculture-based economy (32% of GDP in 1952) to an industry-oriented economy (47% of GDP in 1986).<ref name="story">{{cite web|url=http://www.taiwan.com.au/Polieco/History/ROC/report04.html|title=The Story of Taiwan - Economy|website=Taiwan.com.au|access-date=23 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20100202032138/http://www.taiwan.com.au/Polieco/History/ROC/report04.html|archive-date=2 February 2010}}</ref>{{Better source needed|reason=This is source is not reliable.|date=November 2021}} Between 1952 and 1961, the economy grew by an average of 9.21% each year.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}}

Once again, the transformation of Taiwan's economy cannot be understood without reference to a larger geopolitical framework. Although aid was cut back in the 1970s, it was crucial in its formative years, spurring industrialization, and security and economic links between Taiwan and the United States were maintained. Uncertainty about the US commitment accelerated the country's shift from subsidized import-substitution in the 1950s to [[export-oriented industrialization|export-led growth]].The development of foreign trade and exports helped absorb excess labor from a decreased importance of agriculture in the economy.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}} [[Taiwan]] moved from cheap, labor-intensive manufactures, such as textiles and toys, into an expansion of heavy industry and infrastructure in the 1970s and then to advanced electronics in the subsequent decade. By the 1980s, the economy was becoming increasingly open, and the government moved towards the privatization of government enterprises.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}} Technological development led to the establishment of the [[Hsinchu Science and Industrial Park|Hsinchu Science Park]] in 1981. Investments in [[mainland China]] spurred cross-strait trade, decreasing Taiwan's dependence on the United States market.<ref name="story" />{{Better source needed|reason=This is source is not reliable.|date=November 2021}} From 1981 to 1995, the economy grew at an annual rate of 7.52%, and the service sector became the largest sector at 51.67%, surpassing the industrial sector and becoming a major source of the economy's growth.

International Trade is officially assisted by [[Taiwan External Trade Development Council]].<ref>{{cite web|title=Taipei Taitra - List of TAITRA overseas offices|url=http://taipei.taiwantrade.com.tw/flash/big/unitList.jsp?lang=en_US|url-status=dead|archive-url=https://web.archive.org/web/20161028054842/http://taipei.taiwantrade.com.tw/flash/big/unitList.jsp?lang=en_US|archive-date=28 October 2016|access-date=9 November 2013|website=Taipei.taiwantrade.com.tw}}</ref> Because of the financial policy<ref>{{Cite web|title=Banking Environment and Reform Measures of Taipei, China During the Asian Financial Crisis|url=http://www.aric.adb.org/pdf/aem/external/financial_market/Sound_Practices/tap_bnk.pdf|url-status=dead|archive-url=https://web.archive.org/web/20140709162957/http://www.aric.adb.org/pdf/aem/external/financial_market/Sound_Practices/tap_bnk.pdf|archive-date=9 July 2014|access-date=18 February 2013}}</ref> by the [[Central Bank of the Republic of China (Taiwan)]] and its entrepreneurial strengths,<ref>{{cite web|title=The Definition, Purposes, Functions and Services of Incubation Centers|url=http://incubator.moeasmea.gov.tw/en/incubation-centers-en/incubation-centers-info-en|access-date=27 July 2018|website=Incubator.moeasmea.gov.tw|archive-date=7 October 2019|archive-url=https://web.archive.org/web/20191007073942/https://incubator.moeasmea.gov.tw/en/incubation-centers-en/incubation-centers-info-en|url-status=live}}</ref> Taiwan suffered little from the [[1997 Asian financial crisis]] compared to other economies in the region.
[[File:Taiwan bonds.webp|thumb|center|Taiwan bonds <br> No [[Inverted yield curve]]s
{{legend-line|#00A2FF solid 3px|30 year}}
{{legend-line|#61D836 solid 3px|20 year}}
{{legend-line|#929292 solid 3px|10 year}}
{{legend-line|#F8BA00 solid 3px|5 year}}
{{legend-line|#FF2600 solid 3px|2 year}}
]]

==Data==
The following table shows the main economic indicators in 1980–2021 (with IMF staff estimates in 2021–2027). Inflation under 5% is in green.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=528,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects }}</ref>
{| class="wikitable" style="text-align:center;"
!Year
!GDP
<small>(in Bil. US$PPP)</small>
!GDP per capita
<small>(in US$ PPP)</small>
!GDP
<small>(in Bil. US$nominal)</small>
!GDP per capita
<small>(in US$ nominal)</small>
!GDP growth
<small>(real)</small>
!Inflation rate
<small>(in Percent)</small>
!Unemployment
<small>(in Percent)</small>
!Government debt
<small>(in % of GDP)</small>
|-
|1980
|61.6
|3,446.2
|42.3
|2,366.8
|{{Increase}}8.0%
|{{IncreaseNegative}}19.0%
|1.2%
|n/a
|-
|1981
|{{Increase}}72.2
|{{Increase}}3,967.2
|{{Increase}}49.0
|{{Increase}}2,691.5
|{{Increase}}7.1%
|{{IncreaseNegative}}15.7%
|{{IncreaseNegative}}1.4%
|n/a
|-
|1982
|{{Increase}}80.3
|{{Increase}}4,338.3
|{{Increase}}49.5
|{{Decrease}}2,675.3
|{{Increase}}4.8%
|{{Increase}}3.0%
|{{IncreaseNegative}}2.1%
|n/a
|-
|1983
|{{Increase}}91.0
|{{Increase}}4,843.1
|{{Increase}}54.1
|{{Increase}}2,881.7
|{{Increase}}9.0%
|{{Increase}}1.4%
|{{IncreaseNegative}}2.7%
|n/a
|-
|1984
|{{Increase}}103.8
|{{Increase}}5,441.4
|{{Increase}}61.1
|{{Increase}}3,202.6
|{{Increase}}10.0%
|{{Increase}}0.0%
|{{DecreasePositive}}2.5%
|n/a
|-
|1985
|{{Increase}}112.2
|{{Increase}}5,808.8
|{{Increase}}63.6
|{{Increase}}3,293.9
|{{Increase}}4.8%
|{{Increase}}-0.2%
|{{IncreaseNegative}}2.9%
|n/a
|-
|1986
|{{Increase}}127.6
|{{Increase}}6,541.8
|{{Increase}}78.2
|{{Increase}}4,008.1
|{{Increase}}11.5%
|{{Increase}}0.7%
|{{DecreasePositive}}2.7%
|n/a
|-
|1987
|{{Increase}}147.5
|{{Increase}}7,475.6
|{{Increase}}105.0
|{{Increase}}5,325.2
|{{Increase}}12.8%
|{{Increase}}0.5%
|{{DecreasePositive}}2.0%
|n/a
|-
|1988
|{{Increase}}164.9
|{{Increase}}8,264.1
|{{Increase}}126.5
|{{Increase}}6,338.1
|{{Increase}}8.0%
|{{Increase}}1.3%
|{{DecreasePositive}}1.7%
|n/a
|-
|1989
|{{Increase}}186.3
|{{Increase}}9,243.6
|{{Increase}}152.7
|{{Increase}}7,575.9
|{{Increase}}8.7%
|{{Increase}}4.4%
|{{DecreasePositive}}1.6%
|n/a
|-
|1990
|{{Increase}}204.0
|{{Increase}}9,999.4
|{{Increase}}166.6
|{{Increase}}8,167.2
|{{Increase}}5.5%
|{{Increase}}4.1%
|{{IncreaseNegative}}1.7%
|n/a
|-
|1991
|{{Increase}}228.6
|{{Increase}}11,091.9
|{{Increase}}187.1
|{{Increase}}9,081.9
|{{Increase}}8.4%
|{{Increase}}3.6%
|{{DecreasePositive}}1.5%
|n/a
|-
|1992
|{{Increase}}253.2
|{{Increase}}12,171.2
|{{Increase}}222.9
|{{Increase}}10,715.5
|{{Increase}}8.3%
|{{Increase}}4.5%
|{{Steady}}1.5%
|n/a
|-
|1993
|{{Increase}}276.9
|{{Increase}}13,186.4
|{{Increase}}236.3
|{{Increase}}11,256.7
|{{Increase}}6.8%
|{{Increase}}2.9%
|{{Steady}}1.5%
|n/a
|-
|1994
|{{Increase}}304.0
|{{Increase}}14,353.8
|{{Increase}}256.2
|{{Increase}}12,099.7
|{{Increase}}7.5%
|{{Increase}}4.1%
|{{IncreaseNegative}}1.6%
|n/a
|-
|1995
|{{Increase}}330.5
|{{Increase}}15,475.9
|{{Increase}}279.1
|{{Increase}}13,066.1
|{{Increase}}6.5%
|{{Increase}}3.7%
|{{IncreaseNegative}}1.8%
|n/a
|-
|1996
|{{Increase}}357.4
|{{Increase}}16,602.1
|{{Increase}}292.5
|{{Increase}}13,588.3
|{{Increase}}6.2%
|{{Increase}}3.1%
|{{IncreaseNegative}}2.6%
|n/a
|-
|1997
|{{Increase}}385.5
|{{Increase}}17,731.3
|{{Increase}}303.3
|{{Increase}}13,948.7
|{{Increase}}6.1%
|{{Increase}}0.9%
|{{IncreaseNegative}}2.7%
|25.0%
|-
|1998
|{{Increase}}406.3
|{{Increase}}18,526.5
|{{Decrease}}280.0
|{{Decrease}}12,767.1
|{{Increase}}4.2%
|{{Increase}}1.7%
|{{Steady}}2.7%
|{{DecreasePositive}}23.7%
|-
|1999
|{{Increase}}439.7
|{{Increase}}19,903.7
|{{Increase}}303.8
|{{Increase}}13,752.7
|{{Increase}}6.7%
|{{Increase}}0.2%
|{{IncreaseNegative}}2.9%
|{{Steady}}23.7%
|-
|2000
|{{Increase}}478.1
|{{Increase}}21,460.9
|{{Increase}}330.7
|{{Increase}}14,844.2
|{{Increase}}6.3%
|{{Increase}}1.3%
|{{IncreaseNegative}}3.0%
|{{IncreaseNegative}}26.2%
|-
|2001
|{{Increase}}482.0
|{{Increase}}21,512.3
|{{Decrease}}299.3
|{{Decrease}}13,357.2
|{{Decrease}}-1.4%
|{{Increase}}0.0%
|{{IncreaseNegative}}4.6%
|{{IncreaseNegative}}30.1%
|-
|2002
|{{Increase}}516.3
|{{Increase}}22,927.3
|{{Increase}}307.4
|{{Increase}}13,651.4
|{{Increase}}5.5%
|{{Increase}}-0.2%
|{{IncreaseNegative}}5.2%
|{{DecreasePositive}}29.8%
|-
|2003
|{{Increase}}548.8
|{{Increase}}24,277.2
|{{Increase}}317.4
|{{Increase}}14,040.6
|{{Increase}}4.2%
|{{Increase}}-0.3%
|{{DecreasePositive}}5.0%
|{{IncreaseNegative}}32.2%
|-
|2004
|{{Increase}}602.7
|{{Increase}}26,562.5
|{{Increase}}346.9
|{{Increase}}15,290.3
|{{Increase}}7.0%
|{{Increase}}1.6%
|{{DecreasePositive}}4.4%
|{{IncreaseNegative}}33.4%
|-
|2005
|{{Increase}}655.0
|{{Increase}}28,767.3
|{{Increase}}374.1
|{{Increase}}16,427.5
|{{Increase}}5.4%
|{{Increase}}2.3%
|{{DecreasePositive}}4.1%
|{{IncreaseNegative}}34.1%
|-
|2006
|{{Increase}}714.2
|{{Increase}}31,220.7
|{{Increase}}386.5
|{{Increase}}16,892.9
|{{Increase}}5.8%
|{{Increase}}0.6%
|{{DecreasePositive}}3.9%
|{{DecreasePositive}}33.3%
|-
|2007
|{{Increase}}783.8
|{{Increase}}34,138.8
|{{Increase}}406.9
|{{Increase}}17,723.7
|{{Increase}}6.9%
|{{Increase}}1.8%
|{{Steady}}3.9%
|{{DecreasePositive}}32.2%
|-
|2008
|{{Increase}}805.2
|{{Increase}}34,951.8
|{{Increase}}415.9
|{{Increase}}18,053.6
|{{Increase}}0.8%
|{{Increase}}3.5%
|{{IncreaseNegative}}4.1%
|{{IncreaseNegative}}33.4%
|-
|2009
|{{Decrease}}797.3
|{{Decrease}}34,484.6
|{{Decrease}}390.8
|{{Decrease}}16,904.5
|{{Decrease}}-1.6%
|{{Increase}}-0.9%
|{{IncreaseNegative}}5.9%
|{{IncreaseNegative}}36.7%
|-
|2010
|{{Increase}}889.5
|{{Increase}}38,404.3
|{{Increase}}444.3
|{{Increase}}19,181.4
|{{Increase}}10.2%
|{{Increase}}1.0%
|{{DecreasePositive}}5.2%
|{{IncreaseNegative}}36.9%
|-
|2011
|{{Increase}}941.4
|{{Increase}}40,532.6
|{{Increase}}484.0
|{{Increase}}20,838.6
|{{Increase}}3.7%
|{{Increase}}1.4%
|{{DecreasePositive}}4.4%
|{{IncreaseNegative}}38.3%
|-
|2012
|{{Increase}}973.2
|{{Increase}}41,741.3
|{{Increase}}495.6
|{{Increase}}21,256.4
|{{Increase}}2.2%
|{{Increase}}1.9%
|{{DecreasePositive}}4.2%
|{{IncreaseNegative}}39.2%
|-
|2013
|{{Increase}}1,015.2
|{{Increase}}43,435.5
|{{Increase}}512.9
|{{Increase}}21,945.5
|{{Increase}}2.5%
|{{Increase}}0.8%
|{{Steady}}4.2%
|{{DecreasePositive}}38.9%
|-
|2014
|{{Increase}}1,066.1
|{{Increase}}45,494.3
|{{Increase}}535.3
|{{Increase}}22,844.3
|{{Increase}}4.7%
|{{Increase}}1.2%
|{{DecreasePositive}}4.0%
|{{DecreasePositive}}37.5%
|-
|2015
|{{Increase}}1,102.0
|{{Increase}}46,911.0
|{{Decrease}}534.5
|{{Decrease}}22,753.0
|{{Increase}}1.5%
|{{Increase}}-0.3%
|{{DecreasePositive}}3.8%
|{{DecreasePositive}}35.9%
|-
|2016
|{{Increase}}1,112.8
|{{Increase}}47,272.3
|{{Increase}}543.1
|{{Increase}}23,070.7
|{{Increase}}2.2%
|{{Increase}}1.4%
|{{IncreaseNegative}}3.9%
|{{DecreasePositive}}35.4%
|-
|2017
|{{Increase}}1,143.2
|{{Increase}}48,500.8
|{{Increase}}590.7
|{{Increase}}25,061.6
|{{Increase}}3.3%
|{{Increase}}0.6%
|{{DecreasePositive}}3.8%
|{{DecreasePositive}}34.5%
|-
|2018
|{{Increase}}1,203.2
|{{Increase}}51,005.0
|{{Increase}}609.2
|{{Increase}}25,825.6
|{{Increase}}2.8%
|{{Increase}}1.4%
|{{DecreasePositive}}3.7%
|{{DecreasePositive}}33.9%
|-
|2019
|{{Increase}}1,262.2
|{{Increase}}53,476.0
|{{Increase}}611.4
|{{Increase}}25,903.2
|{{Increase}}3.1%
|{{Increase}}0.6%
|{{Steady}}3.7%
|{{DecreasePositive}}32.7%
|-
|2020
|{{Increase}}1,320.3
|{{Increase}}56,037.8
|{{Increase}}669.3
|{{Increase}}28,404.7
|{{Increase}}3.4%
|{{Increase}}-0.2%
|{{IncreaseNegative}}3.9%
|{{DecreasePositive}}32.6%
|-
|2021
|{{Increase}}1,465.5
|{{Increase}}62,696.1
|{{Increase}}774.7
|{{Increase}}33,143.0
|{{Increase}}6.6%
|{{Increase}}2.0%
|{{IncreaseNegative}}4.0%
|{{DecreasePositive}}28.4%
|-
|2022
|{{Increase}}1,621.7
|{{Increase}}69,500.0
|{{Increase}}828.7
|{{Increase}}35,513.2
|{{Increase}}3.3%
|{{Increase}}3.1%
|{{DecreasePositive}}3.6%
|{{DecreasePositive}}24.1%
|-
|2023
|{{Increase}}1,727.2
|{{Increase}}74,066.5
|{{Increase}}859.0
|{{Increase}}36,833.9
|{{Increase}}2.8%
|{{Increase}}2.2%
|{{Steady}}3.6%
|{{DecreasePositive}}22.1%
|-
|2024
|{{Increase}}1,801.1
|{{Increase}}77,231.7
|{{Increase}}901.6
|{{Increase}}38,662.5
|{{Increase}}2.1%
|{{Increase}}1.4%
|{{Steady}}3.6%
|{{DecreasePositive}}20.2%
|-
|2025
|{{Increase}}1,871.4
|{{Increase}}80,247.1
|{{Increase}}948.5
|{{Increase}}40,673.6
|{{Increase}}2.0%
|{{Increase}}1.4%
|{{Steady}}3.6%
|{{DecreasePositive}}18.1%
|-
|2026
|{{Increase}}1,945.2
|{{Increase}}83,412.7
|{{Increase}}996.8
|{{Increase}}42,745.0
|{{Increase}}2.0%
|{{Increase}}1.4%
|{{Steady}}3.6%
|{{DecreasePositive}}16.2%
|-
|2027
|{{Increase}}2,022.6
|{{Increase}}86,730.1
|{{Increase}}1,045.2
|{{Increase}}44,820.8
|{{Increase}}2.0%
|{{Increase}}1.4%
|{{Steady}}3.6%
|{{DecreasePositive}}14.4%
|}

==Economy by region==
[[File:Taiwan_median_income_map.svg|thumb|Annual median household income in Taiwan by township/city or district in 2016]]
{|class="sortable wikitable"
|+ List of cities and counties in Republic of China (Taiwan) by GDP per capita in 2016<ref name="exchange rate 2016">According to [http://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/ADVEC/WEOWORLD] {{Webarchive|url=https://web.archive.org/web/20171109191127/http://www.imf.org/external/datamapper/PPPEX@WEO/OEMDC/ADVEC/WEOWORLD|date=9 November 2017}} (IMF-WEO April 2017), PPP rate is TWD 15.11 per Int'l.dollar; according to the [https://www.ofx.com/en-au/forex-news/historical-exchange-rates/yearly-average-rates/] {{Webarchive|url=https://web.archive.org/web/20171123115647/https://www.ofx.com/en-au/forex-news/historical-exchange-rates/yearly-average-rates/|date=23 November 2017}}, the average exchange rate is TWD 32.258135 per US dollar (the average exchange rate of the year was 32.258135 TWD to 1 USD); GDP per capita figures in USD are retrieved from [https://tieba.baidu.com/p/5313891806?pn=0&] {{Webarchive|url=https://web.archive.org/web/20180221161603/https://tieba.baidu.com/p/5313891806?pn=0&|date=21 February 2018}} and are published by National Statistics of Republic of China (Taiwan)[http://www1.stat.gov.tw/mp_stat1.html] {{Webarchive|url=https://web.archive.org/web/20171030203937/http://www1.stat.gov.tw/mp_stat1.html|date=30 October 2017}}.</ref>
|- align=center bgcolor=#E6E6E6
!Rank!!cities!![[New Taiwan dollar|TWD]]!![[United States dollar|US$]]!!PPP
 
|- align=right
||1||align=left|[[Taipei]]||990,292||30,699||65,539
 
|- align=right
||2||align=left|[[Hsinchu City]]||853,089||26,446||56,459

|- align=right
||-||align=left|[[Taipei-Keelung metropolitan area]] ||830,788||25,754||54,982

|- align=right
||-||align=left| ''Taipei-Keelung-Taoyuan metropolitan area''||807,860||25,044||53,465
 
|- align=right
||3||align=left|[[New Taipei]]||733,776||22,747||48,562
 
|- align=right
||4||align=left|[[Taoyuan, Taiwan|Taoyuan]]||731,518||22,677||48,413

|- align=right
||-||align=left|[[Taiwan]]||727,098||22,540||48,120
 
|- align=right
||5||align=left|[[Taichung]]||724,905||22,472||47,975
 
|- align=right
||6||align=left|[[Hsinchu County]]||724,840||22,470||47,971
 
|- align=right
||7||align=left|[[Penghu County]]||709,066||21,981||46,927

|- align=right
||8||align=left|[[Chiayi City]]||709,033||21,980||46,925
 
|- align=right
||9||align=left|[[Keelung]]||706,808||21,911||46,777
 
|- align=right
||10||align=left|[[Yilan County, Taiwan|Yilan County]]||700,034||21,701||46,329
 
|- align=right
||11||align=left|[[Hualien County]]||693,292||21,492||45,883
 
|- align=right
||12||align=left|[[Kaohsiung]]||684,260||21,212||45,285
 
|- align=right
||13||align=left|[[Kinmen|Kinmen County]]||668,582||20,726||44,248
 
|- align=right
||14||align=left|[[Miaoli County]]||657,292||20,376||43,500
 
|- align=right
||15||align=left|[[Tainan]]||643,743||19,956||42,604
 
|- align=right
||16||align=left|[[Taitung County]]||623,485||19,328||41,263
 
|- align=right 
||17||align=left|[[Changhua County]]||618,969||19,188||40,964
 
|- align=right
||18||align=left|[[Yunlin County]]||607,776||18,841||40,223
 
|- align=right
||19||align=left|[[Pingtung County]]||592,066||18,354||39,184
 
|- align=right 
||20||align=left|[[Nantou County]]||569,453||17,653||37,687
 
|- align=right
||21||align=left|[[Chiayi County]]||562,743||17,445||37,243
|}

==Economic outlook==
As of 2021, the three highest-paid sectors in Taiwan include [[telecommunication service]], [[financial services]], and [[information technology|information services]].<ref>{{cite web|title=Taiwan's 5 high-paying industries must see job changing workers |url=https://today.line.me/tw/v2/amp/article/7wVM2M&ved=2ahUKEwituZPiltf6AhWrgFYBHdVwCI8QFnoECBAQAQ&usg=AOvVaw0OG2A8wcKes0KFVIBAHiDa }}</ref> The economy of Taiwan ranked the highest in Asia in the 2015 Global Entrepreneurship Index (GEI).<ref>{{cite web|title=The China Post|url=http://www.chinapost.com.tw/taiwan/business/2014/11/21/422312/Taiwan-best.htm|access-date=27 July 2018|website=The China Post|archive-date=23 July 2017|archive-url=https://web.archive.org/web/20170723021825/http://www.chinapost.com.tw/taiwan/business/2014/11/21/422312/taiwan-best.htm|url-status=live}}</ref> 
With the [[technocracy]]-centered [[economic planning]]<ref>{{cite web|title=Documents|url=http://isites.harvard.edu/fs/docs/icb.topic442978.files/Rodrik%20--%20How%20Korea%20and%20Taiwan%20grew%20rich.pdf|website=isites.harvard.edu|access-date=12 October 2012|archive-date=3 July 2013|archive-url=https://www.webcitation.org/6HpT6XNRf?url=http://isites.harvard.edu/fs/docs/icb.topic442978.files/Rodrik%20--%20How%20Korea%20and%20Taiwan%20grew%20rich.pdf|url-status=live}}</ref> until 1987, real growth in GDP has averaged about 8% during the past three decades. Exports have grown since [[World War II]], with inflation and unemployment staying low and foreign reserves being the world's fourth largest. [[Directorate-General of Budget, Accounting and Statistics]]<ref>{{cite web|title=National Statistics, Republic of China (Taiwan)|url=http://eng.stat.gov.tw/mp.asp?mp=5|access-date=27 July 2018|website=eng.stat.gov.tw|archive-date=25 April 2009|archive-url=https://web.archive.org/web/20090425183615/http://eng.stat.gov.tw/mp.asp?mp=5|url-status=dead}}</ref> and [[Ministry of Economic Affairs (Republic of China)|Ministry of Economic Affairs]]<ref>{{cite web|date=14 November 2013|title=Ministry of Economic Affairs, R.O.C. - Statistics of Economic|url=http://www.moea.gov.tw/Mns/english/content/ContentLink2.aspx?menu_id=213|url-status=dead|archive-url=https://web.archive.org/web/20130715041825/http://www.moea.gov.tw/Mns/english/content/ContentLink2.aspx?menu_id=213|archive-date=15 July 2013|website=Moea.gov.tw}}</ref> release major economic indicators of the economy of Taiwan.

Taiwan now faces many of the same economic issues as other developed economies. With the prospect of continued relocation of labor-intensive industries to economies with cheaper workforces, such as in mainland China, the Philippines, and Vietnam, Taiwan's future development will have to rely on further transformation to a high-technology and service-oriented economy.<ref name="qfinance">{{cite web|url=http://www.qfinance.com/country-profiles/taiwan|title=Taiwan - Economy|publisher=QFinance|access-date=23 December 2010|archive-url=https://web.archive.org/web/20100829030421/http://www.qfinance.com/country-profiles/taiwan|archive-date=29 August 2010|url-status=dead}}</ref> In recent years, Taiwan has successfully diversified its trade markets, cutting its share of exports to the United States from 49% in 1984 to 20% in 2002. Taiwan's dependence on the United States should continue to decrease as its exports to Southeast Asia and mainland China grow, and its efforts to develop European markets produce results.<ref name="supercycle">{{cite book|url=https://books.google.com/books?id=cEHPisdNINwC&pg=PA208|title=The Great Super Cycle: Profit from the Coming Inflation Tidal Wave and Dollar Devaluation|page=208|last=Skarica|first=David|publisher=John Wiley and Sons|year=2010|isbn=978-0-470-62418-0|access-date=22 February 2019|archive-date=25 September 2020|archive-url=https://web.archive.org/web/20200925143428/https://books.google.com/books?id=cEHPisdNINwC&pg=PA208&lpg=PA208&hl=en|url-status=live}}</ref> Taiwan's accession to the WTO and its desire to become an Asia-Pacific "regional operations center" are spurring further economic liberalization. The economy of Taiwan is facing economic marginalization in the world economy <ref>{{cite web|title=Downloads - 2013 - White Paper - AmCham - American Chamber of Commerce in Taipei - 臺北市美國商會|url=http://www.amcham.com.tw/white-papers-2/cat_view/158-white-paper/310-2013|access-date=4 March 2015|website=Amcham.com.tw|archive-date=16 March 2015|archive-url=https://web.archive.org/web/20150316120541/http://amcham.com.tw/white-papers-2/cat_view/158-white-paper/310-2013|url-status=live}}</ref> de-internationalization and lower salaries. This results in human resource talents seeking career opportunities elsewhere. Businesses in Taiwan suffer most from being the size of small and medium enterprises, which impedes attempts at economic transformation in Taiwan by the Taiwanese government.<ref>{{cite web|title=Market Insights - Michael Page|url=http://www.michaelpage.com.tw/websitepdf/Taiwan_+2013_SEF_FINAL.pdf|access-date=27 July 2018|website=Michael Page}}</ref>

The [[indirect tax]] system of the economy of Taiwan comprises Gross Business Receipts Tax (GBRT) ([[gross receipts tax]]) and [[value-added tax]] (VAT).<ref>{{cite web|title=Asia Pacific Indirect Tax Country Guide|url=http://www.kpmg.de/docs/asia-pacific-indirect-tax-country-guide.pdf|url-status=dead|archive-url=https://web.archive.org/web/20130404100632/http://www.kpmg.de/docs/asia-pacific-indirect-tax-country-guide.pdf|archive-date=4 April 2013|access-date=6 August 2018|website=Kpmg.de}}</ref> The economy of Taiwan is ranked 15th overall in the Global Top 20 Top Destination Cities by International Overnight Visitors (2014) by the MasterCard 2014 Global Destination Cities Index.<ref>{{cite web|title=Mastercard : 2014 Global Destination Cities Index|url=http://newsroom.mastercard.com/wp-content/uploads/2014/07/Mastercard_GDCI_2014_Letter_Final_70814.pdf|access-date=6 August 2018|website=Newsroom.mastercard.com|archive-date=16 September 2018|archive-url=https://web.archive.org/web/20180916112828/https://newsroom.mastercard.com/wp-content/uploads/2014/07/Mastercard_GDCI_2014_Letter_Final_70814.pdf|url-status=live}}</ref>

In addition, economic inequality, as measured by the [[Gini coefficient]], has been on the rise in Taiwan, rising from a value of 0.47 in 1980 to 0.61 in 2022 (before considering taxes and welfare transfers). Post-tax GINI was 0.32, similar to most other developed countries.<ref>{{Cite journal |last1=Hasell |first1=Joe |last2=Arriagada |first2=Pablo |last3=Ortiz-Ospina |first3=Esteban |last4=Roser |first4=Max |date=2024-01-03 |title=Economic Inequality |url=https://ourworldindata.org/economic-inequality#explore-data-on-economic-inequality |journal=Our World in Data}}</ref><ref>{{Cite web |date=2024-05-06 |title=Notes from Central Taiwan: Wealth inequality - Taipei Times |url=https://www.taipeitimes.com/News/feat/archives/2024/05/06/2003817432 |access-date=2024-11-16 |website=www.taipeitimes.com}}</ref>

===2008 financial crisis===
Taiwan recovered quickly from the [[2008 financial crisis]] and the [[Great Recession]], and its economy has been growing steadily since. Its economy faced a downturn in 2009 due to a heavy reliance on exports which in turn made it vulnerable to world markets.<ref name="supercycle" /> Unemployment reached levels not seen since 2003, and the economy fell 8.36% in the fourth quarter of 2008.<ref name="qfinance" /> In response, the government launched a US$5.6 billion economic stimulus package (3% of its GDP), provided financial incentives for businesses, and introduced tax breaks.<ref name="qfinance" /> The stimulus package focused on infrastructure development, small and medium-sized businesses, tax breaks for new investments, and low-income households.<ref name="qfinance" /> Boosting shipments to new overseas markets, such as Russia, [[Brazil]], and the Middle East, was also a main goal of the stimulus.<ref name="qfinance" /> The economy has since slowly recovered; by November 2010, Taiwan's unemployment rate had fallen to a two-year low of 4.73%,<ref>{{cite news|url=http://www.chinapost.com.tw/business/asia/australia/2010/12/22/284742/Jobless-rate.htm|title=Jobless rate falls to 2-year low in November|work=China Post|date=22 December 2010|access-date=22 December 2010|archive-date=26 December 2010|archive-url=https://web.archive.org/web/20101226172459/http://www.chinapost.com.tw/business/asia/australia/2010/12/22/284742/Jobless-rate.htm|url-status=live}}</ref> and continued dropping to a 40-month low of 4.18% by the end of 2011.<ref>{{cite news|url=http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201201300048|title=Taiwan's jobless rate drops to 40-month low in December|publisher=Focus Taiwan News Channel|date=30 January 2011|access-date=30 January 2011|archive-date=4 August 2020|archive-url=https://web.archive.org/web/20200804121143/https://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201201300048|url-status=live}}</ref> The average salary has also been rising steadily for each month in 2010, up 1.92% from the same period in 2009.<ref>{{cite news|url=http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201012220041|title=Regular salary up for 12 consecutive months|publisher=Focus Taiwan News Channel|date=22 December 2010|access-date=22 December 2010|archive-date=18 January 2012|archive-url=https://web.archive.org/web/20120118183625/http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201012220041|url-status=live}}</ref> [[Industrial production|Industrial output]] for November 2010 reached another high, up 19.37% from a year earlier, indicating strong exports and a growing local economy.<ref>{{cite news|url=http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?ID=201012230027&Type=aECO|title=November industrial production index hits fresh high|publisher=Focus Taiwan News Channel|date=23 December 2010|access-date=23 December 2010|archive-date=19 January 2012|archive-url=https://web.archive.org/web/20120119181600/http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?ID=201012230027&Type=aECO|url-status=live}}</ref> [[Consumption (economics)|Private consumption]] is also increasing, with retail sales up 6.4% compared to 2009.<ref>{{cite news|url=http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aALL&ID=201012240012|title=Taiwan retail sales forecast to hit record high this year|publisher=Focus Taiwan News Channel|date=24 December 2010|access-date=25 December 2010|archive-date=18 January 2012|archive-url=https://web.archive.org/web/20120118175315/http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aALL&ID=201012240012|url-status=live}}</ref> After 10.5% economic growth in 2010, the [[World Bank]] expected growth to continue and reach 5% for 2011.<ref>{{cite news|url=http://news.cens.com/cens/html/en/news/news_inner_35135.html|title=Taiwan's Economic Growth to Reach 5% in 2011: the World Bank|publisher=China Economic News Service|author=Judy Li|date=19 January 2011|access-date=19 January 2011|url-status=dead|archive-url=https://web.archive.org/web/20110124000903/http://news.cens.com/cens/html/en/news/news_inner_35135.html|archive-date=24 January 2011}}</ref>

According to the [[National Development Council (Taiwan)|National Development Council]], Taiwan's economy declined in May 2019 due to the ongoing [[China–United States trade war]].<ref>{{cite web|url=http://focustaiwan.tw/news/aeco/201906290004.aspx|title=Taiwan economy remains sluggish in May amid global trade war|date=29 June 2019 |access-date=29 June 2019|archive-date=29 June 2019|archive-url=https://web.archive.org/web/20190629103601/http://focustaiwan.tw/news/aeco/201906290004.aspx|url-status=live}}</ref>

==Foreign trade==
{{More citations needed|section|date=July 2021}}  
{{See also|Taishang|New Southbound Policy}}
[[File:2008Computex Day5 TWTC Hall 1.jpg|thumb|right|[[Computex Taipei]], the second-largest technology [[trade fair|trade show]] in the world,<ref>{{cite news|url=https://www.pcworld.com/article/216340/tablets_internetlinked_smart_sensors_to_star_at_computex.html|title=Tablets, Internet-linked Smart Sensors to Star at Computex|author=Ralph Jennings|work=PC World|date=10 January 2011|access-date=19 January 2011}}</ref> is a global [[information technology|IT]] exhibition which attracts many foreign investors.<ref>{{cite news|url=http://www.zdnetasia.com/computex-show-draws-over-23-300-foreign-buyers-21212378.htm|archive-url=https://archive.today/20120418225740/http://www.zdnetasia.com/computex-show-draws-over-23-300-foreign-buyers-21212378.htm|url-status=dead|archive-date=18 April 2012|title=Computex show draws over 23,300 foreign buyers|work=ZDNet|date=11 June 2001|access-date=19 January 2011}}</ref>]]

Foreign trade has been the engine of Taiwan's rapid growth during the past 40 years. Taiwan's economy remains export-oriented; thus, it depends on an open world trade regime and remains vulnerable to downturns in the world economy. The total value of trade increased over fivefold in the 1960s, nearly tenfold in the 1970s, and doubled again in the 1980s.<ref>{{cite web|url=http://www.taiwanembassy.org/ca/ct.asp?xItem=92320&CtNode=181&mp=77&xp1=|title=Services of Economic Division|publisher=Taipei Economic and Cultural Office, Canada|access-date=23 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20111003053239/http://www.taiwanembassy.org/ca/ct.asp?xItem=92320&CtNode=181&mp=77&xp1=|archive-date=3 October 2011}}</ref> The 1990s saw a more modest, slightly less than twofold, growth. Export composition changed from predominantly agricultural commodities to industrial goods (now 98%). The electronics sector is Taiwan's most important industrial export sector and is the largest recipient of United States investment.

Taiwan is a member of numerous trade agreements, with [[Economy of China|China]], [[Economy of Japan|Japan]], [[Economy of the United States|USA]], the [[Economy of the European Union|European Union]], and [[Economy of Hong Kong|Hong Kong]] as top 5 trade partners in 2010.<ref name="imports">{{cite web|date=December 2010|title=Import by Key Trading Partners|url=http://2k3dmz2.moea.gov.tw/gnweb/Indicator/wHandIndicator_File.ashx?type=pdf&report_code=FB03|url-status=dead|archive-url=https://web.archive.org/web/20131005133546/http://2k3dmz2.moea.gov.tw/gnweb/htmNotFoundPage.htm?aspxerrorpath=%2Fgnweb%2FIndicator%2FwHandIndicator_File.ashx|archive-date=5 October 2013|access-date=23 December 2010|publisher=Ministry of Economic Affairs}}</ref><ref name="exports">{{cite web|date=December 2010|title=Export by Key Trading Partners|url=http://2k3dmz2.moea.gov.tw/gnweb/Indicator/wHandIndicator_File.ashx?type=pdf&report_code=FB02|url-status=dead|archive-url=https://web.archive.org/web/20131005133546/http://2k3dmz2.moea.gov.tw/gnweb/htmNotFoundPage.htm?aspxerrorpath=%2Fgnweb%2FIndicator%2FwHandIndicator_File.ashx|archive-date=5 October 2013|access-date=23 December 2010|publisher=Ministry of Economic Affairs}}</ref> Taiwan has one of the world's lowest [[fertility rate]] and high [[housing prices]]. Labor shortages, falling domestic demand, and declining [[Taxation in Taiwan|tax revenues]] are concerns as Taiwan's population decline is faster than other [[advanced economies]].<ref name="CIA">{{cite web|date=2020-02-07|title=East Asia/Southeast Asia :: Taiwan - The World Factbook|url=https://www.cia.gov/the-world-factbook/countries/taiwan/|access-date=2020-02-29|website=Central Intelligence Agency|quote=Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges. Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Moreover, Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025. President TSAI's administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.}}</ref><ref name="Asian Development Bank 2020">{{cite book|date=2020-04-03|title=Asian Development Outlook (ADO) 2020: What Drives Innovation in Asia?|url=https://www.adb.org/publications/asian-development-outlook-2020-innovation-asia|archive-url=https://web.archive.org/web/20200407050409/https://www.adb.org/sites/default/files/publication/575626/ado2020.pdf|archive-date=2020-04-07|access-date=2020-04-07|pages=207–208|issn=1996-725X|issue=2020|publisher=Asian Development Bank |doi=10.22617/FLS200119-3 |isbn=9789292621568 |s2cid=241124033 }}</ref><ref>{{Cite web |title=THE WORLD FACTBOOK - Birth rate |url=https://www.cia.gov/the-world-factbook/field/birth-rate/country-comparison |access-date=24 August 2022 |publisher=CIA: Central Intelligence Agency}}</ref>

As an island economy with a lack of [[natural resources]] and comparatively lower domestic [[aggregate demand]], Taiwan's highly educated human resources<ref>{{cite web|title=Background paper |url=https://www.un.org/esa/sustdev/publications/industrial_development/3_1.pdf|website=Un.org|access-date=28 June 2017|url-status=live|archive-date=12 July 2017|archive-url=https://web.archive.org/web/20170712102828/http://www.un.org/esa/sustdev/publications/industrial_development/3_1.pdf}}</ref> would contribute greatly to [[Value added]] [[Innovation management]]<ref>{{cite web |title=Data|url=http://unctad.org/en/PublicationsLibrary/ecidc2013misc1_bp8.pdf|website=unctad.org|access-date=27 February 2018|archive-date=29 August 2017|archive-url=https://web.archive.org/web/20170829075848/http://unctad.org/en/PublicationsLibrary/ecidc2013misc1_bp8.pdf|url-status=live}}</ref><ref>{{cite web|last=Karimaa|first=Alexandra|date=February 2013|title=Value-Aware Approach to Management of Innovative Software Products and Services|url=http://www.joebm.com/papers/16-E00039.pdf|website=www.joebm.com|access-date=27 September 2015|archive-date=27 September 2015|archive-url=https://web.archive.org/web/20150927184208/http://www.joebm.com/papers/16-E00039.pdf|url-status=live}}</ref><ref>{{cite web |url=http://iic.wiki.fgv.br/file/view/Developing+Innovation+Capability+in+Organizations+a+Dynamic+Capabilities+Approach.pdf |title=Developing Innovation Capability In Organizations |website=iic.wiki.fgv.br |access-date=17 January 2022 |archive-url=https://web.archive.org/web/20120813045719/http://iic.wiki.fgv.br/file/view/Developing+Innovation+Capability+in+Organizations+a+Dynamic+Capabilities+Approach.pdf |archive-date=13 August 2012 |url-status=dead}}</ref><ref>{{cite web|title=Bloomberg Pursuits - Bloomberg|url=https://www.bloomberg.com/slideshow/2014-01-22/30-most-innovative-countries.html#slide22|access-date=27 July 2018|website=Bloomberg.com|archive-date=1 July 2016|archive-url=https://web.archive.org/web/20160701043449/http://www.bloomberg.com/slideshow/2014-01-22/30-most-innovative-countries.html#slide22|url-status=live}}</ref> for expanding<ref>{{cite web |title=Chinese Taipei |website=Innovationpolicyplatform.org |url=https://www.innovationpolicyplatform.org/content/chinese-taipei|access-date=27 July 2018|archive-url=https://web.archive.org/web/20180714164617/https://www.innovationpolicyplatform.org/content/chinese-taipei|archive-date=14 July 2018|url-status=dead}}</ref> Taiwan's international trade.

Taiwan, as an independent economy, became a member of the [[World Trade Organization]] (WTO) as [[Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu]] (often shortened to "Chinese Taipei" - both names resulting from PRC interference in the WTO) in January 2002. In a 2011 report by Business Environment Risk Intelligence (BERI), Taiwan ranked third-best globally for its investment environment.<ref>{{cite news|url=http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201109010034|title=Taiwan world's third-best for investment: research firm|publisher=Focus Taiwan News Channel|date=1 September 2011|access-date=1 September 2011|archive-date=19 January 2012|archive-url=https://web.archive.org/web/20120119215500/http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?Type=aECO&ID=201109010034|url-status=live}}</ref>

Taiwan is the world's largest supplier of contract computer chip manufacturing ([[Semiconductor fabrication plant|foundry services]]) and is a leading [[liquid crystal display|LCD panel]] manufacturer,<ref>{{cite news|url=http://www.taiwantoday.tw/ct.asp?xItem=138976&ctNode=445|title=Taiwan's ICT industry gears up for prosperous 2011|newspaper=Taiwan Today|date=23 December 2010|access-date=23 December 2010|archive-url=https://web.archive.org/web/20110718012053/http://www.taiwantoday.tw/ct.asp?xItem=138976&ctNode=445|archive-date=18 July 2011|url-status=dead}}</ref> DRAM computer memory, networking equipment, and consumer electronics designer and manufacturer.<ref name="supercycle" /> Major hardware companies include [[Acer Inc.|Acer]], [[Asus]], [[HTC]], [[Foxconn]], [[TSMC]] and [[Pegatron]]. Textiles are another major industrial export sector, though of declining importance due to [[labor shortage]]s, increasing overhead costs, land prices, and [[environmental protection]].<ref name="majorind">{{cite web|url=http://www.taiwan.com.au/Polieco/Industry/Major/report01.html|title=Major Industries in Taiwan|website=Taiwan.com.au|access-date=23 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20100222091017/http://www.taiwan.com.au/Polieco/Industry/Major/report01.html|archive-date=22 February 2010}}</ref>

Imports are dominated by raw materials and capital goods, which account for more than 90% of the total. Taiwan imports most of its energy needs. The United States is Taiwan's third largest trading partner, taking 11.4% of Taiwanese exports and supplying 10.0% of its imports.<ref name="imports" /><ref name="exports" /> Mainland China has recently become Taiwan's largest import and export partner. In 2010, the mainland accounted for 28.0% of Taiwan's exports and 13.2% of imports.<ref name="imports" /><ref name="exports" /> This figure is growing rapidly as both economies become ever more interdependent. Imports from mainland China consist mostly of agricultural and industrial raw materials. Exports to the United States are mainly electronics and consumer goods. As the Taiwanese per capita income level has risen, demand for imported, high-quality consumer goods has increased. Taiwan's 2002 trade surplus with the United States was $8.70 billion.

The lack of formal [[foreign relations of Taiwan|diplomatic relations]] between the Republic of China (Taiwan) with Taiwan's trading partners appears not to have seriously hindered Taiwan's rapidly expanding commerce. The Republic of China maintains [[Taipei Economic and Cultural Representative Office|cultural and trade offices]] in more than 60 countries with which it does not have official relations to represent Taiwanese interests. In addition to the WTO, Taiwan is a member of the [[Asian Development Bank]] as "Taipei, China" (a name resulting from PRC influence on the bank) and the [[Asia-Pacific Economic Cooperation]] (APEC) forum as "[[Chinese Taipei]]" (for the same reason as above). These developments reflect Taiwan's economic importance and its desire to become further integrated into the global economy.

Taiwan is a member of the [[Asian Development Bank]] (ADB), the [[World Trade Organization]] (WTO), and the [[Asia-Pacific Economic Cooperation]] (APEC). Taiwan is also an observer<ref>{{cite web|title=Research from TASC|url=http://www.aseancenter.org.tw/en/CenStudyDetail.aspx?studyid=6&natstudyid=1 |website=Aseancenter.org.tw|access-date=7 October 2012|archive-date=29 July 2013|archive-url=https://web.archive.org/web/20130729172832/http://www.aseancenter.org.tw/en/CenStudyDetail.aspx?studyid=6&natstudyid=1|url-status=live}}</ref> at the [[Organisation for Economic Co-operation and Development]] (OECD) and [[International Energy Agency]]&nbsp;(IEA) as Member<ref>{{cite web |url=https://www.iea.org/countries/chinese-taipei |title=Chinese Taipei |website=[[International Energy Agency]]&nbsp;(IEA)}}</ref> under the acronym of [[Chinese Taipei]],<ref>{{cite journal|year=2011 |title=Chinese Taipei - Organisation for Economic Co-operation and Development |url=http://www.oecd.org/countries/chinesetaipei/|series=OECD Trade and Environment Working Papers |doi=10.1787/5kgcf71l188x-en|website=Oecd.org|access-date=13 October 2012|archive-date=7 June 2013|archive-url=https://web.archive.org/web/20130607030144/http://www.oecd.org/countries/chinesetaipei/|url-status=live}}</ref> and a member of [[International Chamber of Commerce]] as Chinese Taipei.<ref>{{cite web|title=Chinese Taipei Business Council of ICC details &#124; ICC - International Chamber of Commerce|url=http://www.iccwbo.org/Worldwide-Membership/National-Committees/Chinese-Taipei-Business-Council-of-ICC/|website=Iccwbo.org|access-date=13 October 2012|archive-date=23 August 2013|archive-url=https://web.archive.org/web/20130823195747/http://iccwbo.org/worldwide-membership/national-committees/chinese-taipei-business-council-of-icc/|url-status=live}}</ref> Taiwan signed [[Economic Cooperation Framework Agreement]] with People's Republic of China on 29 June 2010. Taiwan has also signed free trade pacts with Singapore and New Zealand.<ref>{{cite web|author=Jenny W. Hsu |author2=Aries Poon|date=7 November 2013|title=Taiwan, Singapore Sign Free-Trade Pact|url=https://www.wsj.com/articles/SB10001424052702303309504579182900090244112|access-date=4 March 2015|work=WSJ|archive-date=2 April 2015|archive-url=https://web.archive.org/web/20150402125620/http://www.wsj.com/articles/SB10001424052702303309504579182900090244112|url-status=live}}</ref><ref>{{cite web|author=Lucy Craymer |author2=Fanny Liu|date=11 July 2013|title=Taiwan and New Zealand Sign Free-Trade Agreement|url=https://www.wsj.com/articles/SB10001424127887324425204578597022344060966|access-date=4 March 2015|work=WSJ|archive-date=31 March 2015|archive-url=https://web.archive.org/web/20150331171027/http://www.wsj.com/articles/SB10001424127887324425204578597022344060966|url-status=live}}</ref> Taiwan applied for the membership in the [[Asian Infrastructure Investment Bank]] in 2015.<ref>{{cite web|title=Hong Kong, Taiwan seek to join AIIB|url=http://www.chinadaily.com.cn/china/2015-04/02/content_19978113.htm|access-date=27 July 2018|website=Chinadaily.com.cn|archive-date=27 July 2018|archive-url=https://web.archive.org/web/20180727151403/http://www.chinadaily.com.cn/china/2015-04/02/content_19978113.htm|url-status=live}}</ref>

The [[Economic Cooperation Framework Agreement]] (ECFA) with the People's Republic of China was signed on 29 June 2010, in [[Chongqing]].<ref name="xinhuanet1">{{cite web |url=http://news.xinhuanet.com/english2010/china/2010-06/29/c_13375203.htm |title=Chinese, Taiwan sign landmark economic pact |agency=Xinhua News Agency |date=24 June 2010 |access-date=29 June 2010 |archive-url=https://web.archive.org/web/20100703011457/http://news.xinhuanet.com/english2010/china/2010-06/29/c_13375203.htm |archive-date=3 July 2010 |url-status=dead}}</ref><ref>Taiwan News, [http://www.etaiwannews.com/etn/news_content.php?id=1299089&lang=eng_news&cate_img=83.jpg&cate_rss=news_Politics_TAIWAN ECFA signing scheduled for June 29] {{Webarchive|url=https://web.archive.org/web/20131021233451/http://www.etaiwannews.com/etn/news_content.php?id=1299089&lang=eng_news&cate_img=83.jpg&cate_rss=news_Politics_TAIWAN |date=21 October 2013 }} 25 June 2010</ref> It could potentially widen the market for Taiwan's exports. However, the true benefits and impacts brought by ECFA to Taiwan's overall economy are still in dispute.<ref>{{cite web |author=John Pike |url=http://www.globalsecurity.org/military/library/news/2009/07/mil-090716-voa06.htm |title=Taiwan Sees Gains in Closer Ties With China |website=Globalsecurity.org |date=16 July 2009 |access-date=17 July 2009 |archive-date=5 September 2009 |archive-url=https://web.archive.org/web/20090905161506/http://www.globalsecurity.org/military/library/news/2009/07/mil-090716-voa06.htm |url-status=live }}</ref> The newly signed agreement will allow for more than 500 products made in Taiwan to enter mainland China at low or no [[tariff]]s.<ref>{{cite news|url=http://www.chinapost.com.tw/business/asia/b-taiwan/2011/01/02/286001/Taiwan-ranks.htm|title=Taiwan ranks fifth in major importers to China in 2010|work=China Post|date=2 January 2011|access-date=1 January 2010|agency=CNA|archive-date=25 September 2012|archive-url=https://web.archive.org/web/20120925020348/http://www.chinapost.com.tw/business/asia/b-taiwan/2011/01/02/286001/Taiwan-ranks.htm|url-status=live}}</ref> As of 2021, Taiwan's exports to the People's Republic of China (including Hong Kong) totaled about US$270 billion per year, which is equivalent to more than 40% of Taiwan's total GDP.<ref>{{cite web | url=https://asiatimes.com/2022/04/chinas-trade-boom-defies-new-cold-war/ | title=China's trade boom defies new Cold War | date=14 April 2022 }}</ref> The government is also looking to establish trade agreements with Singapore<ref>{{cite news|url=http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?ID=201012150035&Type=aECO|title=Taiwan, Singapore prepare to forge economic partnership (update)|publisher=Focus Taiwan News Channel|date=15 December 2010|access-date=23 December 2010|archive-date=19 January 2012|archive-url=https://web.archive.org/web/20120119000234/http://focustaiwan.tw/ShowNews/WebNews_Detail.aspx?ID=201012150035&Type=aECO|url-status=live}}</ref> and the United States.<ref>{{cite news|url=http://www.chinapost.com.tw/taiwan/foreign-affairs/2010/12/23/284795/Taiwan-US-TIFA.htm|title=Taiwan-US TIFA talks to resume next month|work=China Post|date=23 December 2010|access-date=23 December 2010|archive-date=9 January 2011|archive-url=https://web.archive.org/web/20110109081857/http://www.chinapost.com.tw/taiwan/foreign-affairs/2010/12/23/284795/Taiwan-US-TIFA.htm|url-status=live}}</ref>

==Industry==
[[File:Taipei Skyline 2022.06.29.jpg|thumb|Skyline of modern [[skyscrapers]] in [[Xinyi Business Area|Xinyi Special District]], Taipei.]]
[[File:Kaohsiung_Skyline_2020.jpg|thumb|Kaohsiung skyline.]]
[[File:Taichung skyline.png|thumb|[[Taichung's 7th Redevelopment Zone]]]]

Industrial output has gradually decreased from accounting for over half of Taiwan's GDP in 1986 to just 31% in 2002.<ref name="majorind" /> Industries have gradually moved to the capital and technology-intensive industries from more labor-intensive industries, with electronics and information technology accounting for 35% of the industrial structure.<ref name="majorind" /> Industry in Taiwan primarily consists of many small and medium-sized enterprises (SME) with fewer large enterprises. Traditional labor-intensive industries are being moved off-shore and replaced with capital and technology-intensive industries.<ref>{{cite journal|url=http://www.oecd-ilibrary.org/development/taiwanese-corporations-in-globalisation-and-regionalisation_263030024237|title=Taiwanese Corporations in Globalisation and Regionalisation|first=Gee|last=San|date=1 April 1992|journal=OECD Development Centre Working Papers|access-date=27 July 2018|doi=10.1787/263030024237|archive-date=23 September 2018|archive-url=https://web.archive.org/web/20180923121032/https://www.oecd-ilibrary.org/development/taiwanese-corporations-in-globalisation-and-regionalisation_263030024237|url-status=live}}</ref> These industries are in the pre-mature stage of the [[manufacturing industry]] in various global economic competitions, and growing from the over-reliance from the [[original equipment manufacturer]] and [[original design manufacturer]] models.<ref>{{cite web|url=http://www.ddg.com.tw/en/archives/journal/acronym|title=Are Three-letter Acronyms Holding Taiwan Hostage?|website=Ddg.com.tw|date=18 July 2018 |access-date=27 July 2018|archive-date=3 May 2019 |archive-url=https://web.archive.org/web/20190503204806/http://www.ddg.com.tw/en/archives/journal/acronym |url-status=live}}</ref><ref>{{cite web|url=https://www.brookings.edu/opinions/the-transformation-of-taiwans-status-within-the-production-and-supply-chain-in-asia/|title=The Transformation of Taiwan's Status Within the Production and Supply Chain in Asia|publisher=Brookings Institution|author-first1=Da-Nien|author-last1=Liu|author-first2=Hui-Tzu|author-last2=Shih|date=4 December 2013|access-date=27 July 2018|archive-url=https://web.archive.org/web/20180612140707/https://www.brookings.edu/opinions/the-transformation-of-taiwans-status-within-the-production-and-supply-chain-in-asia/ |archive-date=12 June 2018|url-status=live}}</ref> The [[Institute for Information Industry]]<ref>{{cite web |url=http://web.iii.org.tw/ |title=III - Institute for Information Industry |website=Web.iii.org.tw |access-date=26 January 2013 |archive-date=20 June 2013 |archive-url=https://web.archive.org/web/20130620165724/http://web.iii.org.tw/ |url-status=live }}</ref><ref>{{cite web |url=http://www.find.org.tw/eng/home.asp |title=FIND-Foreseeing Innovative New Digiservices |website=Find.org.tw |url-status=dead |archive-url=https://web.archive.org/web/20101008090646/http://www.find.org.tw/eng/home.asp |archive-date=8 October 2010 }}</ref> is responsible for the development of the [[Information technology|IT]] and [[Information and communication technologies|ICT]] industry<ref>{{cite web|url=http://www.itu.int/net/pressoffice/backgrounders/general/pdf/5.pdf|title=Measuring the Information Society 2011|website=Itu.int|access-date=6 August 2018|archive-date=15 March 2016|archive-url=https://web.archive.org/web/20160315064739/http://www.itu.int/net/pressoffice/backgrounders/general/pdf/5.pdf|url-status=live}}</ref> in Taiwan. [[Industrial Technology Research Institute]] is the advanced research center for applied technology for the economy of Taiwan.<ref>{{cite web|date=1 April 2013|title=Industrial Technology Research Institute |url=http://www.itri.org.tw/eng/|website=Itri.org.tw|access-date=26 January 2013|archive-date=3 July 2013|archive-url=https://web.archive.org/web/20130703061132/http://www.itri.org.tw/eng/|url-status=live}}</ref> The [[Art in Taiwan|art industry]] is significant with sales worth $225.4 million made domestically in 2019. Taiwanese collectors and artists are also prominent in the global art market.<ref>{{cite news |last1=Chow |first1=Vivienne |title=Taipei's Thriving Art Scene Looks to Become an International Star |url=https://www.artnews.com/art-news/news/taipei-taiwan-art-cities-to-watch-1234598724/ |newspaper=Artnews.com |date=14 July 2021 |publisher=Art News |access-date=14 July 2021}}</ref>

The "e-Taiwan" project launched by the government seeks to use US$1.83 billion to improve the information and communications infrastructure in Taiwan in five major areas: government, life, business, transport, and broadband.<ref name="icttotw" /><ref name="etaiwan">{{cite web|title=e-Taiwan Program 2004|date=5 May 2005 |url=http://www.etaiwan.nat.gov.tw/content/application/etaiwan/egenerala/guest-cnt-browse.php?cnt_id=779 |access-date=23 December 2010 |url-status=dead|archive-date=21 July 2011|archive-url=https://web.archive.org/web/20110721164241/http://www.etaiwan.nat.gov.tw/content/application/etaiwan/egenerala/guest-cnt-browse.php?cnt_id=779|publisher=eTaiwan Program}}</ref> The program seeks to raise industry competitiveness, improve government efficiency, and improve the [[quality of life]], and aims to increase the number of broadband users on the island to 6 million.<ref name="etaiwan" /> In 2010, Taiwan's software market grew by 7.1% to reach a value of US$4 billion, accounting for 3.3% of the Asia-Pacific region market value. The digital content production industry grew by 15% in 2009, reaching US$14.03 billion.<ref name="icttotw" /> The [[optoelectronics]] industry (including [[flat panel display]]s and [[photovoltaics]]) totaled NT$2.2 trillion in 2010, a 40% jump from 2009, representing a fifth of the global market share.<ref>{{cite news|url=http://www.chinapost.com.tw/taiwan-business/2011/01/06/286530/Taiwans-Optoelectronics.htm|title=Taiwan's Optoelectronics industry totals NT$2.2 tril.|work=China Post|date=6 January 2011|access-date=5 January 2011|archive-date=9 January 2011|archive-url=https://web.archive.org/web/20110109035818/http://www.chinapost.com.tw/taiwan-business/2011/01/06/286530/Taiwans-Optoelectronics.htm|url-status=live}}</ref> The economy of Taiwan is a partner in the Global [[Value Chain]]s of [[Electronics Industry]].<ref>{{cite web|date=2010|title=Electronics industry stats|url=http://unstats.un.org/unsd/trade/s_geneva2011/refdocs/RDs/GVC%20in%20Electronics%20Industry%20(Sturgeon%20-%20Sep%202010).pdf|website=unstats.un.org|access-date=3 November 2012|archive-date=3 May 2019|archive-url=https://web.archive.org/web/20190503000915/https://unstats.un.org/unsd/trade/s_geneva2011/refdocs/RDs/GVC%20in%20Electronics%20Industry%20(Sturgeon%20-%20Sep%202010).pdf|url-status=live}}</ref> [[Electronic components]] and personal computer are areas of international strength of Taiwan's Information Technology industry.<ref>{{cite web|title=Data|url=http://file.icsead.or.jp/user03/927_208.pdf|website=file.icsead.or.jp|access-date=27 October 2012|archive-date=12 September 2012|archive-url=https://web.archive.org/web/20120912181206/http://file.icsead.or.jp/user03/927_208.pdf|url-status=live}}</ref>

Taiwan has a growing [[startup]] sector.<ref>{{cite news|title=Slush CSO on Taiwan's Startups: Youth Must Take the Lead|url=http://beyondertimes.com/?p=292|agency=Beyond Times|date=13 November 2015|access-date=15 August 2016|archive-url=https://web.archive.org/web/20160826235935/http://beyondertimes.com/?p=292|archive-date=26 August 2016|url-status=dead}}</ref><ref>{{cite news|last1=Leichman|first1=Abigail Klein|title=Taiwan Students Fly To Israel for a Taste of Startup Sauce|url=http://www.israel21c.org/taiwan-students-fly-to-israel-for-a-taste-of-startup-sauce/|agency=Israel 21C|date=July 2016|access-date=15 August 2016|archive-date=21 July 2016|archive-url=https://web.archive.org/web/20160721005307/http://www.israel21c.org/taiwan-students-fly-to-israel-for-a-taste-of-startup-sauce/|url-status=live}}</ref>

===Consumer goods===
Taiwan is a major producer of [[sporting goods]] with NT$59.8 billion of production in 2020, 40–50% of production is indoor fitness equipment.<ref>{{cite web |last1=Liao |first1=George |title=Taiwan's sporting goods production expected to break NT$60 billion this year |url=https://www.taiwannews.com.tw/en/news/4264996 |website=www.taiwannews.com.tw |date=5 August 2021 |publisher=Taiwan News |access-date=5 August 2021}}</ref> Taiwan is the global leader in [[golf]] equipment with 80% of global production concentrated in the country.<ref>{{cite web |last1=Wu |first1=Ching Fang |title=Taiwan's Golf Gear Manufacturers Bounce Back as Tiger Woods Returns to Glory |url=https://english.cw.com.tw/article/article.action?id=2431 |website=english.cw.com.tw |publisher=Commonwealth Magazine |access-date=5 August 2021}}</ref> The four largest golf OEM are all Taiwanese, however, these firms are increasingly selling products under their own brands.<ref>{{cite web |last1=Liu |first1=Philip |title=Swinging For the Fairway: Taiwan Golf Equipment |url=https://topics.amcham.com.tw/2015/08/swinging-for-the-fairway-taiwan-golf-equipment/ |website=topics.amcham.com.tw |date=13 August 2015 |publisher=Taiwan Topics |access-date=5 August 2021}}</ref>

The Taiwanese [[bicycle]] industry is significant. Production peaked at ten million units a year in the 1980s but declined as low end production moved abroad and domestic manufactures moved upmarket. [[Giant Bicycles]] and [[Merida Bikes]] are the largest Taiwanese bicycle manufacturers. [[Mountain bike]]s and [[ebike]]s make up much of contemporary production.<ref>{{cite web |last1=Scanlan |first1=Sean |title=Taipei Cycle: Guide to an industry geared up for change |url=https://www.taiwannews.com.tw/en/news/5108803 |website=taiwannews.com.tw |date=6 March 2024 |access-date=6 March 2024}}</ref> In 2022 the bicycle industry hit a record $6 billion US in revenue.<ref>{{cite web |title=Taiwan: The powerhouse behind the Tour De France |url=https://www.bikenews.online/index.php?route=bossblog/article&blog_article_id=616#:~:text=Taiwan%27s%20bicycle%20industry%20output%20hit,up%2026.4%25%20year%20on%20year. |website=bikenews.online |publisher=Bike News |access-date=6 March 2024}}</ref>

===Semiconductor industry===
{{Main|Semiconductor industry in Taiwan}}
The [[semiconductor]] industry, including IC manufacturing, design, and packing, forms a major part of Taiwan's IT industry.<ref name="emerging">{{cite web|title=Emerging Industries|website=Taiwan.com.au |url=http://www.taiwan.com.au/Polieco/Industry/Emerge/report01.html|access-date=19 January 2011|archive-url=https://web.archive.org/web/20090915014414/http://taiwan.com.au/Polieco/Industry/Emerge/report01.html |archive-date=15 September 2009|url-status=dead}}</ref> Due to its strong capabilities in OEM wafer manufacturing and a complete industry [[supply chain]], Taiwan has been able to distinguish itself from its competitors.<ref name="emerging" /><ref>{{cite web|url=http://sourcing.taiwantrade.com.tw/db/IndustryOverview/15.Semiconductor.pdf|archive-url=https://web.archive.org/web/20110827155627/http://sourcing.taiwantrade.com.tw/db/IndustryOverview/15.Semiconductor.pdf|url-status=dead|archive-date=27 August 2011|title=The Status of the Semiconductor Industry in Taiwan|publisher=Department of Investment Services, MOEA|access-date=19 January 2011}}</ref> The sector output reached US$39 billion in 2009, ranking first in global market share in IC manufacturing, packaging, and testing, and second in IC design.<ref name="veteran" /> [[TSMC|Taiwan Semiconductor Manufacturing Company]] (TSMC) and [[United Microelectronics Corporation]] (UMC) are the two largest contract chipmakers in the world,<ref name="toptwo" /> while [[MediaTek]] is the fourth-largest [[fabless semiconductor company|fabless]] supplier globally.<ref>{{cite web|url=http://www.icinsights.com/news/bulletins/13-Fabless-IC-Suppliers-Forecast-To-Top-10-Billion-In-Sales-In-2010/|title=13 Fabless IC Suppliers Forecast to Top $1.0 Billion in Sales in 2010!|publisher=IC Insights|date=21 December 2010|access-date=19 January 2011|archive-date=26 December 2010|archive-url=https://web.archive.org/web/20101226175010/http://www.icinsights.com/news/bulletins/13-Fabless-IC-Suppliers-Forecast-To-Top-10-Billion-In-Sales-In-2010|url-status=dead}}</ref> In 1987, TSMC pioneered the [[fabless semiconductor company|fabless foundry]] model, reshaping the global semiconductor industry.<ref name="veteran" /><ref>{{cite book|url=https://books.google.com/books?id=z_8QLeCk1rQC&pg=PA194|title=Business Network Transformation: Strategies to Reconfigure Your Business Relationships for Competitive Advantage|author=Jeffrey Word|page=194|publisher=John Wiley and Sons|year=2009|isbn=9780470528341}}</ref> From [[Industrial Technology Research Institute|ITRI]]'s first 3-inch wafer fabrication plant built in 1977<ref name="veteran">{{cite news|url=http://taiwantoday.tw/ct.asp?xItem=107417&CtNode=429|title=Veteran tells story of Taiwan's semiconductor industry|author=Meg Chang|newspaper=Taiwan Today|date=18 June 2010|access-date=19 January 2011|archive-url=https://web.archive.org/web/20110830113215/http://taiwantoday.tw/ct.asp?xItem=107417&CtNode=429|archive-date=30 August 2011|url-status=dead}}</ref> and the founding of UMC in 1980,<ref>{{cite web|url=http://web.rollins.edu/~tlairson/easia/taiwansemi.pdf|title=A Silicon Valley of the East: Creating Taiwan's Semiconductor Industry|publisher=California Management Reviews|author=John A. Matthews|year=1997|page=26|access-date=19 January 2011|archive-url=https://web.archive.org/web/20110717011745/http://web.rollins.edu/~tlairson/easia/taiwansemi.pdf|archive-date=17 July 2011|url-status=dead}}</ref> the industry has developed into a world leader with 40 fabs in operation by 2002.<ref name="emerging" /> In 2007, the semiconductor industry overtook that of the United States, second only to Japan.<ref>{{cite news|url=http://www.chinapost.com.tw/business/2007/10/29/128610/Taiwan-semiconductor.htm|title=Taiwan semiconductor output overtakes United States|work=China Post|date=29 October 2007|access-date=18 January 2011|archive-date=20 May 2011|archive-url=https://web.archive.org/web/20110520235459/http://www.chinapost.com.tw/business/2007/10/29/128610/Taiwan-semiconductor.htm|url-status=live}}</ref> Although the [[2008 financial crisis]] affected sales and exports,<ref>{{cite web|url=http://www.rncos.com/Blog/2010/01/Taiwan-Semiconductor-Industry-Records-Fastest-YOY-Growth.html|title=Taiwan's Semiconductor Industry Records Fastest YOY Growth|publisher=RNCOS|date=6 January 2010|access-date=19 January 2011|archive-date=25 May 2010|archive-url=https://web.archive.org/web/20100525232054/http://www.rncos.com/Blog/2010/01/Taiwan-Semiconductor-Industry-Records-Fastest-YOY-Growth.html|url-status=live}}</ref> the industry has rebounded with companies posting record profits for 2010.<ref>{{cite news|url=https://www.google.com/hostednews/afp/article/ALeqM5hYEUrZ2T1YoJX0w55juhTc-IAHhA?docId=CNG.6581f16764e24f3824cf7a659616dd6d.21|title=Taiwan's TSMC sales rise more than 40% in 2010|agency=Agence France-Presse|date=10 January 2011|access-date=19 January 2011|archive-date=26 February 2014|archive-url=https://web.archive.org/web/20140226121901/http://www.google.com/hostednews/afp/article/ALeqM5hYEUrZ2T1YoJX0w55juhTc-IAHhA?docId=CNG.6581f16764e24f3824cf7a659616dd6d.21|url-status=dead}}</ref><ref>{{cite news|url=http://www.taipeitimes.com/News/biz/archives/2011/01/08/2003492933|title=UMC posts record annual sales as foundry picks up|work=Taipei Times|date=8 January 2011|access-date=19 January 2011|page=12|archive-date=8 October 2012|archive-url=https://web.archive.org/web/20121008180948/http://www.taipeitimes.com/News/biz/archives/2011/01/08/2003492933|url-status=live}}</ref> The international industrial forecast of semiconductor manufacturing, which is the flagship industry of the economy of Taiwan that faces immense competition ahead with its American counterparts.<ref>{{cite web|author=Agam Shah|date=8 May 2013|title=Intel: We don't see the end of Moore's Law yet|url=http://www.citeworld.com/mobile/21843/intel-moores-law-not-dead?page=0|access-date=4 March 2015|work=CITEworld|archive-date=1 March 2014|archive-url=https://web.archive.org/web/20140301110047/http://www.citeworld.com/mobile/21843/intel-moores-law-not-dead?page=0|url-status=live}}</ref><ref>{{cite news|title=Science and technology: No Moore? - The Economist|url=https://www.economist.com/news/21589080-golden-rule-microchips-appears-be-coming-end-no-moore|access-date=4 March 2015|newspaper=The Economist|archive-date=27 February 2015|archive-url=https://web.archive.org/web/20150227082428/http://www.economist.com/news/21589080-golden-rule-microchips-appears-be-coming-end-no-moore|url-status=live}}</ref> By 2020 Taiwan was the unmatched leader of the global semiconductor industry with [[TSMC|Taiwan Semiconductor Manufacturing Company]] (TSMC) alone accounting for more than 50% of the global market.<ref>{{cite web |last1=Chien-chung |first1=Chang |last2=Huang |first2=Frances |title=Taiwan to remain largest semiconductor material market in 2020, 2021 |url=https://focustaiwan.tw/sci-tech/202009220024 |website=focustaiwan.tw |date=22 September 2020 |publisher=Focus Taiwan |access-date=17 November 2020}}</ref>

===Information technology===
[[File:TSMC in Tainan Science Park.JPG|thumb|right|A [[TSMC]] factory in [[Southern Taiwan Science Park|Tainan Science Park]], one of the many companies that make up Taiwan's IT industry]]

Taiwan's information technology industry has played an important role in the worldwide IT market over the last 20 years.<ref name="majorind" /> In 1960, the [[electronics]] industry in Taiwan was virtually nonexistent.<ref>{{cite book|last=Chang|first=Chun-Yen|title=Made by Taiwan: booming in the information technology era|publisher=World Scientific|year=2001|page=vii|url=https://books.google.com/books?id=dTJCttEkGnoC|isbn=9789810247799}}</ref> However, with the government's focus on development of expertise with high technology, along with marketing and management knowledge to establish its own industries, companies such as [[TSMC]] and [[United Microelectronics Corporation|UMC]] were established.<ref>{{cite book|last=Chang|first=Chun-Yen|title=Made by Taiwan: booming in the information technology era|publisher=World Scientific|year=2001|page=x|url=https://books.google.com/books?id=dTJCttEkGnoC&q=taiwan%20information%20technology&pg=PR10|isbn=9789810247799|access-date=12 November 2015|archive-date=2 May 2016|archive-url=https://web.archive.org/web/20160502065952/https://books.google.com/books?id=dTJCttEkGnoC&lpg=PP1&dq=taiwan%20information%20technology&pg=PR10|url-status=live}}</ref> The industry used its industrial resources and product management experience to cooperate closely with major international suppliers to become the [[research and development]] hub of the Asia-Pacific region.<ref name="majorind" /> The structure of the industry in Taiwan includes a handful of companies at the top along with many small and medium-sized enterprises (SME) which account for 85% of industrial output.<ref name="majorind" /> These SMEs usually produce products on an [[original equipment manufacturer]] (OEM) or [[original design manufacturer]] (ODM) basis, resulting in less resources spent on research and development.<ref name="majorind" /> Due to the emphasis of the OEM/ODM model, companies are usually unable to make in-depth assessments for investment, production, and marketing of new products, instead relying upon importation of key components and advanced technology from the United States and Japan.<ref name="majorind" /> Twenty of the top information and communication technology (ICT) companies have International Procurement Offices set up in Taiwan.<ref name="icttotw" /> As a signer of the [[Information Technology Agreement]],<ref>{{cite web|url=http://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm|title=Schedules of concessions|publisher=World Trade Organization|access-date=23 December 2010|archive-date=3 February 2018|archive-url=https://web.archive.org/web/20180203125107/https://www.wto.org/english/tratop_E/inftec_e/itscheds_e.htm|url-status=live}}</ref> Taiwan phased out [[tariff]]s on IT products since 1 January 2002.<ref name="icttotw">{{cite web|url=http://www.austrade.gov.au/ICT-to-Taiwan/default.aspx|title=ICT to Taiwan|publisher=Australian Government|date=18 November 2010|access-date=23 December 2010|archive-date=10 January 2011|archive-url=https://web.archive.org/web/20110110052238/http://www.austrade.gov.au/ICT-to-Taiwan/default.aspx|url-status=live}}</ref>

Taiwan is a hub for global computing, telecommunications, and data management with a number of large server farms operating in the country. Google's data center in Changhua is believed to be the largest in Asia. Taiwan is well connected to the global undersea fiber optic cable network and serves as a substantial traffic interchange.<ref>{{cite web |last1=Chan |first1=KG |title=Taiwan lures businesses amid Hong Kong jitters |url=https://asiatimes.com/2020/06/taiwan-lures-businesses-amid-hong-kong-jitters/ |website=asiatimes.com |date=19 June 2020 |publisher=Asia Times |access-date=19 June 2020 |archive-date=21 June 2020 |archive-url=https://web.archive.org/web/20200621072006/https://asiatimes.com/2020/06/taiwan-lures-businesses-amid-hong-kong-jitters/ |url-status=live }}</ref>

===Agriculture===
[[File:Taiwan 2009 WuHe County Tea Plantation FRD 6216.jpg|thumb|right|A tea plantation in [[Ruisui, Hualien|Ruisui]], [[Hualien County|Hualien]], part of Taiwan's agricultural industry which served as the backbone for its [[Taiwan Miracle|economic miracle]]]]
{{Main|Agriculture in Taiwan}}
Agriculture has served as a strong foundation for Taiwan's [[Taiwan Miracle|economic miracle]].<ref>{{cite web|url=http://www.taiwan-agriculture.org/agriculture/eng1.html|title=Land and Natural Environment|publisher=Council of Agriculture, Executive Yuan|access-date=23 December 2010|archive-date=28 July 2011|archive-url=https://web.archive.org/web/20110728081359/http://www.taiwan-agriculture.org/agriculture/eng1.html|url-status=live}}</ref> It contributes 3% to GDP and the service sector makes up 73% of the economy. After [[Retrocession of Taiwan|retrocession]] from Japan in 1945, the government announced a long-term strategy of "developing industry through agriculture, and developing agriculture through industry".<ref name="preface">{{cite web|url=http://www.gio.gov.tw/info/taiwan-story/agriculture/eframe/frame2.htm|title=The Story of Taiwan: Preface|publisher=Government Information Office, ROC|access-date=23 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20111114005957/http://www.gio.gov.tw/info/taiwan-story/agriculture/eframe/frame2.htm|archive-date=14 November 2011}}</ref> As such, agriculture became the foundation for Taiwan's economic development during early years and served as an anchor for growth in industry and commerce. Whereas in 1951, agricultural production accounted for 35.8% of Taiwan's GDP,<ref name="preface" /> by 2013, it had been vastly surpassed, and its NT$475.90 billion accounted for only 1.69% of the GDP. {{As of|2013}}, Taiwan's agriculture was a mixture of crops (47.88%), livestock (31.16%), fishery (20.87%), and forestry (0.09%).<ref>{{cite web |url=http://www.ey.gov.tw/en/cp.aspx?n=30F733C2E2070422 |title=Executive Yuan, R.O.C. (Taiwan)-Agriculture |access-date=11 July 2015 |url-status=dead |archive-url=https://web.archive.org/web/20150924023724/http://www.ey.gov.tw/en/cp.aspx?n=30F733C2E2070422 |archive-date=24 September 2015 }}</ref> Since its accession into the [[World Trade Organization]] and the subsequent trade liberalization, the government has implemented new policies to develop the sector into a more competitive and modernized green industry.<ref name="twauagri">{{cite web|url=http://www.taiwan.com.au/Polieco/Industry/Agriculture/report01.html|title=Agriculture|website=Taiwan.com.au|access-date=23 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20090915020546/http://taiwan.com.au/Polieco/Industry/Agriculture/report01.html|archive-date=15 September 2009}}</ref>

Although only about one-quarter of Taiwan's land area is suitable for farming, virtually all farmland is intensely cultivated, with some areas suitable for two and even three crops a year. However, increases in agricultural production have been much slower than industrial growth. Agricultural modernization has been inhibited by the small size of farms and the lack of investment in better facilities and training to develop more profitable businesses.<ref name="twauagri" /> Taiwan's agricultural population has steadily decreased from 1974 to 2002, prompting the [[Council of Agriculture]] to introduce modern farm management, provide technical training, and offer counseling for better production and distribution systems.<ref name="twauagri" /> Promotion of farm [[mechanization]] has helped to alleviate labor shortages while increasing productivity; both rice and [[sugar cane]] production are completely mechanized.<ref>{{cite web|url=http://www.taiwan-agriculture.org/agriculture/eng3.html|title=Mechanization|publisher=Council of Agriculture, Executive Yuan|access-date=23 December 2010|archive-date=28 July 2011|archive-url=https://web.archive.org/web/20110728081453/http://www.taiwan-agriculture.org/agriculture/eng3.html|url-status=live}}</ref> Taiwan's main crops are rice, sugar cane, fruits (many of them tropical), and vegetables. Although self-sufficient in rice production, Taiwan imports large amounts of wheat, mostly from the United States. Meat production and consumption have risen sharply, reflecting a high standard of living. Taiwan has exported large amounts of frozen pork, although this was affected by an outbreak of hoof and mouth disease in 1997. Other agricultural exports include fish, aquaculture, and sea products, canned and frozen vegetables, and grain products. Imports of agriculture products are expected to increase due to the WTO accession, which is opening previously protected agricultural markets.{{Citation needed|date=July 2021}}

===Energy===
[[File:Wind power.JPG|thumb|Wind turbines, such as these in [[Qingshui District|Qingshui]], [[Taichung]], are part of the government's efforts in [[renewable energy commercialisation]]]]
{{Main|Energy in Taiwan}}

Due to the lack of [[natural resources]] on the island, Taiwan is forced to import many of its energy needs (currently at 98%).<ref>{{cite web|url=http://www.moeaboe.gov.tw/About/webpage/book_en1/page0.htm|title=Sustainable Development of Renewable Energy|publisher=Ministry of Economic Affairs, Bureau of Energy|access-date=25 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20111008140830/http://www.moeaboe.gov.tw/About/webpage/book_en1/page0.htm|archive-date=8 October 2011}}</ref> Imported energy totaled US$11.52 billion in 2002, accounting for 4.1% of its GDP.<ref name="energy">{{cite web|url=http://www.taiwan.com.au/Polieco/Industry/Energy/report01.html|title=Energy|website=Taiwan.com.au|access-date=25 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20090915013809/http://taiwan.com.au/Polieco/Industry/Energy/report01.html|archive-date=15 September 2009}}</ref> Although the industrial sector has traditionally been Taiwan's largest energy consumer, its share has dropped in recent years from 62% in 1986 to 58% in 2002.<ref name="energy" /> Taiwan's energy consumption is dominated by crude oil & petroleum products (48.52%), followed by coal (29.2%), natural gas (12.23%), [[nuclear power]] (8.33%), and [[hydroelectric power]] (0.28%).<ref>{{cite web|url=http://web3.moeaboe.gov.tw/ECW/english/content/wHandMenuFile.ashx?menu_id=1579|title=Energy Supply|publisher=Ministry of Economic Affairs, Bureau of Energy|access-date=24 November 2015|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304094637/http://web3.moeaboe.gov.tw/ECW/english/content/wHandMenuFile.ashx?menu_id=1579|url-status=live}}</ref> The island is also heavily dependent on imported oil, with 72% of its crude oil coming from the Middle East in 2002. Although the [[Taiwan Power Company]] (Taipower), a state-owned enterprise, is in charge of providing electricity for the Taiwan area, a 1994 measure has allowed [[Independent Power Producer|independent power producers]] (IPPs) to provide up to 20% of the island's energy needs.<ref name="eia">{{cite web|url=http://www.eia.doe.gov/emeu/cabs/taiwan.html|title=Taiwan|publisher=Energy Information Administration, Department of Energy, USA|access-date=25 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20061215030951/http://www.eia.doe.gov/emeu/cabs/taiwan.html|archive-date=15 December 2006}}</ref> [[Indonesia]] and [[Malaysia]] supply most of Taiwan's natural gas needs.<ref name="eia" /> It currently has three operational nuclear power plants. A fourth plant under construction was mothballed in 2014.<ref>{{cite news |url=http://www.taipeitimes.com/News/front/archives/2015/02/04/2003610768 |title=AEC approves plan to shutter fourth nuclear facility |author=Lin, Sean |date=4 February 2015 |newspaper=Taipei Times |access-date=5 March 2015 |archive-date=9 February 2015 |archive-url=https://web.archive.org/web/20150209060829/http://www.taipeitimes.com/News/front/archives/2015/02/04/2003610768 |url-status=live }}</ref>

Although Taiwan's per capita energy use is on par with neighboring Asian countries,<ref>{{cite web|url=http://www.moeaboe.gov.tw/Download/opengovinfo/Plan/all/energy_year/main_en/files/01/chart-05.pdf|archive-url=https://www.webcitation.org/5ylfo8RFw?url=http://www.moeaboe.gov.tw/Download/opengovinfo/Plan/all/energy_year/main_en/files/01/chart-05.pdf|url-status=dead|archive-date=18 May 2011|title=Per Capita GDP and Primary Energy Consumption in Major Countries (2007)|publisher=Ministry of Economic Affairs, Bureau of Energy|access-date=25 December 2010}}</ref> in July 2005 the [[Ministry of Economic Affairs (Republic of China)|Ministry of Economic Affairs]] announced plans to cut 170 million tons of [[carbon dioxide]] [[Greenhouse gas#Greenhouse gas emissions from human activities|emissions]] by 2025.<ref name="eia" /> In 2010, carbon dioxide emissions have been reduced by 5.14 million metric tons.<ref name="cens">{{cite news|url=http://news.cens.com/cens/html/en/news/news_inner_34698.html|title=Taiwan's Green Energy Production Value Surges to NT$340B. in First 11 Months of 2010|publisher=CENS|date=23 December 2010|access-date=25 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20110724032914/http://news.cens.com/cens/html/en/news/news_inner_34698.html|archive-date=24 July 2011}}</ref> In order to further reduce emissions, the government also plans to increase [[efficient energy use|energy efficiency]] by 2% each year through 2020.<ref name="biofuels" /> In addition, by 2015, emissions are planned to be reduced by 7% compared to 2005 levels.<ref name="biofuels" />

Taiwan is the world's 4th largest producer of solar-powered batteries and largest [[light emitting diode|LED]] manufacturer by volume.<ref name="cens" /> In 2010, Taiwan had over 1.66 million square meters of [[Solar thermal collector|solar heat collectors]] installed, with an installation density that ranks it as third in the world.<ref>{{cite web|title=II. Solar Energy |url=http://www.moeaboe.gov.tw/About/webpage/book_en1/page2.htm|access-date=25 December 2010 |publisher=Ministry of Economic Affairs, Bureau of Energy|url-status=dead|archive-url=https://web.archive.org/web/20111008140952/http://www.moeaboe.gov.tw/About/webpage/book_en1/page2.htm |archive-date=8 October 2011}}</ref> The government has already built 155 sets of [[wind turbine]]s capable of producing 281.6 MW of electricity, and additional projects are planned or under construction.<ref>{{cite web |url=http://www.moeaboe.gov.tw/About/webpage/book_en1/page1.htm|title=I. Wind Energy|publisher=Ministry of Economic Affairs, Bureau of Energy|access-date=25 December 2010|url-status=dead|archive-url=https://web.archive.org/web/20111008141006/http://www.moeaboe.gov.tw/About/webpage/book_en1/page1.htm|archive-date=8 October 2011}}</ref> Renewable energy accounts for 6.8% of Taiwan's energy usage as of 2010.<ref name="biofuels" /> In 2010, the [[sustainable energy|green energy]] sector generated US$10.97 billion in production value.<ref name="cens" /> The government also announced plans to invest US$838 million for [[renewable energy]] promotion and an additional US$635 million for [[research and development]].<ref name="biofuels">{{cite web|url=http://www.biofuelswatch.com/investment-plan-by-taiwan/|archive-url=https://web.archive.org/web/20110718035737/http://www.biofuelswatch.com/investment-plan-by-taiwan/|url-status=dead|archive-date=18 July 2011|title=Investment Plan by Taiwan|publisher=Biofuels Watch|author=Edward C. Gates |date=25 December 2010|access-date=25 December 2010}}</ref>

===Steel and heavy manufacturing===
Taiwan, as of 2017, is the world's thirteenth-largest steel exporter. In 2018, Taiwan exported 12.2 million metric tons of steel, a one percent increase from 12.0 million metric tons in 2017. Taiwan's exports represented about 3 percent of all steel exported globally in 2017, based on available data. The volume of Taiwan's 2018 steel exports was one-sixth that of the world's largest exporter, China, and nearly one-third that of the second-largest exporter, Japan. In value terms, steel represented just 3.6 percent of the total amount of goods Taiwan exported in 2018. Taiwan exports steel to more than 130 countries and territories. Over the decade from 2009 to 2019, Taiwan grew its steel exports by 24%. In 2018, the US imported 300,000 metric tons of pipe and tube products. Taiwan has developed a vast export trade to its most proximate neighbors in flat products. Taiwan's [[stainless steel]] exports numbered 2018 about 500,000 metric tons.<ref name="usdoc">{{cite news |title=Global Steel Trade Monitor - Steel Exports Report: Taiwan |url=https://www.trade.gov/steel/countries/pdfs/exports-Taiwan.pdf |agency=International Trade Administration |publisher=US Department of Commerce |date=May 2019 |access-date=9 October 2019 |archive-url=https://web.archive.org/web/20170628011612/http://trade.gov/steel/countries/pdfs/exports-Taiwan.pdf |archive-date=28 June 2017 |url-status=dead }}</ref>

Taiwan is the fourth largest exporter of machine tools and machine tool components in the world. The greater [[Taichung]] area is home to a cluster of machine tool manufacturers.<ref>{{cite web |title=Taiwan: Supporting the Next Generation of Aerospace Manufacturing |url=https://www.mmsonline.com/blog/post/upcoming-webinar-taiwan-supporting-the-next-generation-of-aerospace-manufacturing |website=www.mmsonline.com |publisher=Modern Machine Shop |access-date=8 July 2020 |archive-date=11 July 2020 |archive-url=https://web.archive.org/web/20200711104625/https://www.mmsonline.com/blog/post/upcoming-webinar-taiwan-supporting-the-next-generation-of-aerospace-manufacturing |url-status=live }}</ref>

Taiwanese company [[Techman Robot Inc.]] is the world's second largest producer of [[cobots]].<ref>{{cite web |last1=Huang |first1=Elaine |title=This Made-in-Taiwan Robot Is Drawing International Attention |url=https://english.cw.com.tw/article/article.action?id=2436 |website=english.cw.com.tw |publisher=CommonWealth |access-date=8 July 2020 |archive-date=25 December 2019 |archive-url=https://web.archive.org/web/20191225161600/https://english.cw.com.tw/article/article.action?id=2436 |url-status=live }}</ref>

The [[automotive industry in Taiwan]] is significant, with Taiwanese firms increasingly invested in automotive electrification; 75% of [[Tesla, Inc.]]’s suppliers are Taiwanese.<ref>{{cite web |last1=Lu |first1=Kuo-chen |title=Taiwan's Tesla Boom, and Looking for More |url=https://topics.amcham.com.tw/2020/10/taiwan-tesla-boom/ |website=topics.amcham.com.tw |date=20 October 2020 |publisher=Topics |access-date=29 October 2020}}</ref>

===Maritime industries===
{{Main|Maritime industries of Taiwan}}
In 2017, Taiwan exported one hundred and sixty-two yachts.<ref>{{cite web |last1=Murray |first1=Simon |title=Yacht Building in Taiwan |url=https://www.powerandmotoryacht.com/blogs/yacht-building-in-taiwan |website=www.powerandmotoryacht.com |date=27 April 2018 |publisher=Power and Motoryacht |access-date=5 December 2019 |archive-date=12 May 2019 |archive-url=https://web.archive.org/web/20190512194601/https://www.powerandmotoryacht.com/blogs/yacht-building-in-taiwan |url-status=live }}</ref> In 2018 Taiwan was the fourth largest yacht building nation by feet of yacht built after Italy, The Netherlands and Turkey.<ref>{{cite web |title=Global Order Book |url=https://www.boatinternational.com/boat-pro?gclid=CjwKCAiA78XTBRBiEiwAGv7EKkll-NYWtl6vakPcNJKEIbx0h06xORD0y3u1ngnT89Pk9iT04N5aRRoCuacQAvD_BwE |website=www.boatinternational.com |publisher=Boat International |access-date=5 December 2019 |archive-date=12 May 2019 |archive-url=https://web.archive.org/web/20190512194617/https://www.boatinternational.com/boat-pro?gclid=CjwKCAiA78XTBRBiEiwAGv7EKkll-NYWtl6vakPcNJKEIbx0h06xORD0y3u1ngnT89Pk9iT04N5aRRoCuacQAvD_BwE |url-status=live }}</ref> Taiwan is one of the largest fishing nations on earth and the associated fish processing industry is also significant.<ref>{{cite journal |last1=Gulle |first1=Warwick |title=Fishing industry - Taiwan |url=http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1143&context=lawpapers |website=ro.uow.edu.au |date=January 2009 |publisher=Berkshire Publishing Group |access-date=5 December 2019 |archive-date=12 October 2015 |archive-url=https://web.archive.org/web/20151012030306/http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1143&context=lawpapers |url-status=live }}</ref>

===Tourism industry===
{{Main|Tourism in Taiwan}}

==Largest companies==
{{See also|List of companies of Taiwan|List of largest companies in Taiwan}}
According to the 2019 [[Forbes Global 2000]] index, Taiwan's largest publicly traded companies are:

{|class="wikitable sortable"
|+'''Forbes Global 2000'''<ref name="Forbes global">{{cite magazine |url=https://www.forbes.com/global2000/ |title=Forbes The World's Biggest Public Companies 2016 Ranking |magazine=[[Forbes]] |access-date=3 May 2020 |archive-date=2 October 2019 |archive-url=https://web.archive.org/web/20191002223833/https://www.forbes.com/global2000/list/#country:Taiwan |url-status=live }}</ref>
|-  style="background:#ccc; text-align:center; vertical-align:middle;"
! Rank !! Company !! Revenues<br />($ billion) !! Profit<br />($ billion) !! Assets<br />($ billion) !! Market value<br />($ billion)
|- style="text-align:right;"
| style="text-align:center;"| 1 || style="text-align:left;"|[[Foxconn|Hon Hai Precision]]||175.6
|4.3
|110
|41.2
|- style="text-align:right;"
| style="text-align:center;"| 2 || style="text-align:left;"| [[TSMC]] ||34.2
|11.6
|68
|222.4
|- style="text-align:right;"
| style="text-align:center;" | 3 || style="text-align:left;" | [[Cathay United Bank|Cathay Financial]]||3.5
|0.1
|73.0
|4.1
|- style="text-align:right;"
| style="text-align:center;"| 4 || style="text-align:left;"| [[Fubon Financial Holding Co.|Fubon Financial]] ||21.9
|1.6
|250.6
|14.9
|- style="text-align:right;"
| style="text-align:center;" | 5 || style="text-align:left;" |[[CTBC Financial Holding|CTBC Financial]]||16.7
|1.2
|187.2
|12.8
|- style="text-align:right;"
| style="text-align:center;" | 6 || style="text-align:left;" |[[Formosa Petrochemical]]||25.5
|2
|13.2
|35.4
|- style="text-align:right;"
| style="text-align:center;" | 7 || style="text-align:left;" |[[Formosa Chemicals]]||13.5
|1.6
|19.2
|20.6
|- style="text-align:right;"
| style="text-align:center;" | 8 || style="text-align:left;" |[[Nan Ya Plastics]]||11
|1.7
|18.6
|19.9
|- style="text-align:right;"
| style="text-align:center;" | 9 || style="text-align:left;" |[[Formosa Plastics]]||7.6
|1.6
|13.2
|35.4
|- style="text-align:right;"
| style="text-align:center;" | 10 || style="text-align:left;" |[[China Steel]]||13.3
|0.8
|21.9
|12.6
|- style="text-align:right;"
| style="text-align:center;" | 11 || style="text-align:left;" |[[Chunghwa Telecom]]||7.1
|1.2
|15.2
|27.7
|- style="text-align:right;"
| style="text-align:center;" | 12 || style="text-align:left;" |[[Mega International Commercial Bank|Mega Financial Holding]]||3.2
|0.9
|115.2
|12.4
|- style="text-align:right;"
| style="text-align:center;" | 13 || style="text-align:left;" |[[ASE Group]]||12.3
|0.8
|17.4
|10.2
|- style="text-align:right;"
| style="text-align:center;" | 14 || style="text-align:left;" |[[Quanta Computer]]||34.1
|0.5
|21.5
|7.6
|- style="text-align:right;"
| style="text-align:center;" | 15 || style="text-align:left;" |[[Uni-President Enterprises Corporation|Uni-President]]||14.3
|0.6
|13.2
|13.1
|- style="text-align:right;"
| style="text-align:center;" | 16 || style="text-align:left;" |[[Shin Kong Group|Shin Kong Financial]]||13.1
|0.3
|118.7
|3.4
|}According to the 2022 [[Fortune Global 500]] Rankings, Taiwan's largest publicly traded companies are:
{| class="wikitable sortable"
|+'''[[Fortune 500|Fortune 500 2022]]'''
|- style="background:#ccc; text-align:center; vertical-align:middle;"
! Rank !! Company !! Revenues<br />($ billion) !! Profit<br />($ billion) !! Assets<br />($ billion) !! Market value<br />($ billion)
|- style="text-align:right;"
| style="text-align:center;" | 1 || style="text-align:left;" |[[Foxconn|Hon Hai Precision]]||214.6
|4.99
|141.0
|2.39
|- style="text-align:right;"
| style="text-align:center;" | 2 || style="text-align:left;" | [[TSMC]] ||56.8
|21.21
|134.4
|446.25
|- style="text-align:right;"
| style="text-align:center;" | 3 || style="text-align:left;" | [[Pegatron]]||45.2
|0.73
|24.4
|5.67
|- style="text-align:right;"
| style="text-align:center;" | 4 || style="text-align:left;" | [[Compal Electronics]] ||44.3
|0.45
|19.4
|3.42
|- style="text-align:right;"
| style="text-align:center;" | 5 || style="text-align:left;" |[[Quanta Computer]]||40.4
|1.20
|25.9
|10.48
|- style="text-align:right;"
| style="text-align:center;" | 6 || style="text-align:left;" |[[Cathay Financial Holding]]||37.5
|4.99
|418.3
|23.90
|- style="text-align:right;"
| style="text-align:center;" | 7 || style="text-align:left;" |[[Fubon Financial Holding Co.|Fubon Financial Holding]]||32.2
|5.18
|378.9
|26.92
|- style="text-align:right;"
| style="text-align:center;" | 8 || style="text-align:left;" |[[Wistron]]||30.9
|0.37
|17.9
|2.75
|- style="text-align:right;"
| style="text-align:center;" | 9 || style="text-align:left;" |[[CPC Corporation|CPC]]||30.0
| -1.4
|30.4
|71.44
|}
{|class="wikitable sortable"
|+'''Fortune Global 500'''<!--<ref name="Fortune Global 500">{{cite magazine |url=https://fortune.com/global500/ |title=Fortune Global 500 2022 |magazine=[[Fortune]] |access-date=3 August 2022}}>  -->
! Rank !! Company !! Revenues<br />($ billion) !! Profit<br />($ billion) !! Assets<br />($ billion) !! Market value<br />($ billion)
|- style="text-align:right;"
| style="text-align:center;"| 1 || style="text-align:left;"|[[Foxconn|Hon Hai Precision]]||214.6
|4.98
|141
|41.2
|- style="text-align:right;"
| style="text-align:center;"| 2 || style="text-align:left;"| [[TSMC]] ||34.2
|11.6
|68
|222.4
|- style="text-align:right;"
| style="text-align:center;" | 3 || style="text-align:left;" | [[Cathay United Bank|Cathay Financial]]||3.5
|0.1
|73.0
|4.1
|- style="text-align:right;"
| style="text-align:center;"| 4 || style="text-align:left;"| [[Fubon Financial Holding Co.|Fubon Financial]] ||21.9
|1.6
|250.6
|14.9
|- style="text-align:right;"
| style="text-align:center;" | 5 || style="text-align:left;" |[[CTBC Financial Holding|CTBC Financial]]||16.7
|1.2
|187.2
|12.8
|- style="text-align:right;"
| style="text-align:center;" | 6 || style="text-align:left;" |[[Formosa Petrochemical]]||25.5
|2
|13.2
|35.4
|- style="text-align:right;"
| style="text-align:center;" | 7 || style="text-align:left;" |[[Formosa Chemicals]]||13.5
|1.6
|19.2
|20.6
|- style="text-align:right;"
| style="text-align:center;" | 8 || style="text-align:left;" |[[Nan Ya Plastics]]||11
|1.7
|18.6
|19.9
|- style="text-align:right;"
| style="text-align:center;" | 9 || style="text-align:left;" |[[Formosa Plastics]]||7.6
|1.6
|13.2
|35.4
|- style="text-align:right;"
| style="text-align:center;" | 10 || style="text-align:left;" |[[Formosa Petrochemical]]||25.5
|2
|16.3
|22.3
|- style="text-align:right;"
| style="text-align:center;" | 11 || style="text-align:left;" |[[China Steel]]||13.3
|0.8
|21.9
|12.6
|- style="text-align:right;"
| style="text-align:center;" | 12 || style="text-align:left;" |[[Chunghwa Telecom]]||7.1
|1.2
|15.2
|27.7
|- style="text-align:right;"
| style="text-align:center;" | 13 || style="text-align:left;" |[[Mega International Commercial Bank|Mega Financial Holding]]||3.2
|0.9
|115.2
|12.4
|- style="text-align:right;"
| style="text-align:center;" | 14 || style="text-align:left;" |[[ASE Group]]||12.3
|0.8
|17.4
|10.2
|- style="text-align:right;"
| style="text-align:center;" | 15 || style="text-align:left;" |[[Quanta Computer]]||34.1
|0.5
|21.5
|7.6
|- style="text-align:right;"
| style="text-align:center;" | 16 || style="text-align:left;" |[[Uni-President Enterprises Corporation|Uni-President]]||14.3
|0.6
|13.2
|13.1
|}

==Labor policy==
===Union policies===
The Labor Union Laws, legislated by the [[Kuomintang]] (KMT) on the mainland, gave Taiwan workers the right to unionize. However, prior to the democratization of Taiwan, the functions of trade unions were limited under strict regulation and state [[corporatism]].<ref name=":0">{{Cite journal|last=Chu|first=Yin-wah|date=1996|title=Democracy and Organized Labor in Taiwan: The 1986 Transition|journal=Asian Survey|volume=36|issue=5|pages=495–510|doi=10.2307/2645496|jstor=2645496}}</ref> Under the Labor Union Laws, workers were only allowed to be organized at the companies, which means industry level unions were forbidden. Also, only one union could exist within each company or geographical area.<ref name=":0" /> Special occupational groups such as teachers were not allowed to unionize.<ref name=":1">{{Cite journal|last=Shi|first=Shih-Jiunn|date=2012|title=Shifting dynamics of the welfare politics in Taiwan: from income maintenance to labour protection|journal=Journal of Asian Public Policy|volume=5|pages=82–96|doi=10.1080/17516234.2012.662357|s2cid=153774601}}</ref> The right to strike and [[collective bargaining]] were also hamstrung by law.<ref name=":2">{{Cite journal|last=Wang|first=James W. Y.|date=2010|title=The Political Economy of Collective Labour Legislation in Taiwan|journal=Journal of Current Chinese Affairs|volume=39|issue=3|pages=51–85|doi=10.1177/186810261003900303|doi-access=free}}</ref> The Collective Bargaining Agreement in 1930 stipulated that collective bargains were not legally valid without government approval.<ref name=":2" /> The democratization in 1986 brought dramatic changes to union participation and policies. Between 1986 and 1992, unionized workers increased by 13%.<ref name=":2" /> A number of autonomous, non-official trade unions emerged, including the [[Taiwan Confederation of Trade Unions]] (TCTU) which acquired legal recognition in 2000.<ref name=":2" /> The amendments to the Labor Union Laws and Collective Bargaining Agreement both became effective in the early 21st century. The amended Labor Union Law lifted the limitations on special occupational groups from collective representation.<ref name=":1" /> The Collective Bargaining Agreement Act in 2008 guaranteed trade unions the power to negotiate with employers.<ref name=":2" />

===Employment protection===
Taiwan's labor rights and [[employment protection legislation|employment protections]] increased with its democratization progress in the 1980s, and it still has a relatively high level of employment protection compared to other East Asia countries.<ref>{{Cite journal|last=Caraway|first=Teri|date=2009|title=Labor Rights in East Asia: Progress or Regress?|journal=Journal of East Asian Studies|volume=9|issue=2|pages=153–186|doi=10.1017/s1598240800002976|doi-access=free}}</ref> Implemented in August 1984, Labor Standards Law was the first comprehensive employment protection law for Taiwan workers.<ref name=":3">{{Cite journal|last=Lin|first=Yen-Ling|date=2013|title=Wage Effects of Employment Protection Legislation in Taiwan|journal=Asian Economic Journal|volume=27|issue=2|pages=145–161|doi=10.1111/asej.12007|url=http://tkuir.lib.tku.edu.tw:8080/dspace/bitstream/987654321/80045/2/AEJ2190Dfinalversion.pdf}}</ref> Prior to its implementation, the Factory Act was the primary law governing labor affairs, but was ineffective in practice because of its narrow coverage of businesses and issues and absence of penalties for violation.<ref name=":3" /> In contrast, Labor Standards Law covered a broader range of businesses and labor affairs and detailed penalties for its violation. It regulated a period of notice before firing employees and also required a higher level of [[Severance package|severance payment]].<ref name=":3" /> Other labor issues were also regulated by the law, including contract, wage, overtime payment, compensations for occupational accidents, etc.<ref name=":4">{{Cite journal|last=Camhon|first=Kan|date=2011|title=The Effects of Employment Protection on Labor Turnover: Empirical Evidence from Taiwan|journal=Economic Inquiry|volume=49|issue=2|pages=398–433|doi=10.1111/j.1465-7295.2009.00278.x|citeseerx=10.1.1.362.6008|s2cid=154825637}}</ref> Penalties for employer violation were also clear in the law, stating fines and criminal liabilities.<ref name=":3" /> [[Ministry of Labor (Taiwan)|Council of Labor Affairs]] (CLA) was set up on 1 August 1987 to help with labor inspection and the enforcement of the Labor Standards Law.<ref name=":4" />

In Taiwan, companies with at least a single employee have the compulsion to contribute to the insurer's employment service insurance premium. The share of labor insurance is divided into a 7:2:1 ratio between employer, employee, and state.<ref>{{Cite web|title=Bureau of Labor Insurance Website-Employer-Labors Insurance and Employment Insurance Premium-Premium Sharing Ratio|url=https://www.bli.gov.tw/en/0010791.html|access-date=2021-03-13|website=www.bli.gov.tw}}</ref> As far as a contribution towards social security, companies should pay at least 6% of the wages of its employees towards the social security.<ref>{{Cite web|title=Bureau of Labor Insurance Website-Employment Insurance-Introduction|url=https://www.bli.gov.tw/en/0007480.html|access-date=2021-03-13|website=www.bli.gov.tw}}</ref><ref>{{Cite web|date=2020-03-09|title=Hiring Employees in Taiwan: Benefits, Time-Off, & Termination|url=https://nnroad.com/blog/general/how-to-hire-employees-in-taiwan-benefits-time-off-termination/|access-date=2021-03-13|website=NNRoad}}</ref><ref>{{Cite book|last=Aspalter|first=Christian |url=https://books.google.com/books?id=OiAlDwAAQBAJ|title=The Routledge International Handbook to Welfare State Systems|date=2017-01-12|publisher=Taylor & Francis|isbn=978-1-317-04108-5}}</ref>

===Active labor market policies===
[[Active labour market policies]] were carried out in Taiwan in the late 20th and early 21st centuries as a result of economic structural changes caused by [[globalization]] and [[deindustrialization]].<ref name=":5">{{Cite journal|last=Lue|first=Jen-Der|date=2013|title=Promoting Work: A Review of Active Labour Market Policies in Taiwan|journal=Journal of Asian Public Policy|volume=6|pages=81–98|doi=10.1080/17516234.2013.765184|s2cid=153955361}}</ref> [[Unemployment]] increased and reached approximately 5% in 2002 and 2009.<ref name=":5" /> A set of policies was adopted to help the unemployed and provide jobs. The Employment Insurance Act of 2002 grants income security during unemployment but, at the same time, requires beneficiaries to use all available resources to find jobs.<ref>{{Cite journal|last=Shi|first=Shih-Jiunn|date=2012|title=Shifting Dynamics of the Welfare Politics in Taiwan: from Income Maintenance to Labour Protection|journal=Journal of Asian Public Policy|volume=5|pages=82–96|doi=10.1080/17516234.2012.662357|s2cid=153774601}}</ref> The Multi-Faceted Job Creation Program, first introduced in 1999, creates job in the third sector groups, especially in [[nonprofit organization]]s.<ref name=":5" /> It subsidizes those companies to provide [[Vocational education|vocational trainings]] and job opportunities.<ref name=":6">Fen-ling Chen. "Unemployment and the Government's Role in a Risk Society: A Case Study in Taiwan". Risk and Public Policy in East Asia, edited by Raymond K.H. Chan et al., 2010, 115-131.</ref> The Public Sector Temporary Employment Creation Program directly addressed the [[2008 financial crisis]]. Unlike the Multi-Faceted Job Creation Programs, the Public Sector Temporary Employment Creation Program creates jobs in the government itself. From 2008 to 2009, the government was estimated to create 102,000 job opportunities through that program.<ref name=":2" /> A job creation project was also implemented to help young people by subsidizing the hiring of young people in universities and private companies.<ref name=":6" />

===Working hours===
On 30 July 1984, Taiwan implemented an eighty-six article Labor Standards Act under Presidential Order No.14069.<ref name=":22">{{Cite web |url=https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=N0030001 |title=Labor Standards Act - Article Content - Laws & Regulations Database of the Republic of China |access-date=2 August 2019 |archive-date=10 August 2019 |archive-url=https://web.archive.org/web/20190810150831/https://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=N0030001 |url-status=live }}</ref> The act defined the standard work week as 40 labor hours with an eight-hour limit per day, permitting an overtime-included maximum of forty-eight labor hours per week.<ref name=":0" />

Article 25 of the Labor Standards Act upholds there will be no sexual discrimination in the conditions of workers,<ref name=":22" /> however, because the Taiwanese culture and thus political economy traditionally "categorizes female employees as naturally marriage- and family-oriented," women are assumed to obtain employment in fields that are limited to these ideals.<ref>Chin TF. (2018) Being Employed as a ‘Nyusheng’: Gendered and Heteronormative Management in the Workplace. In: Everyday Gender at Work in Taiwan. Gender, Sexualities and Culture in Asia. Palgrave Macmillan, Singapore</ref> As a result of feminist ideals becoming more prevalent with women seeking equal work conditions in modern societies such as Taiwan, even marital status policy and immigration policy have been affected as women seek less patriarchal roles to the point where Taiwanese men have sought higher rates of transnational marriages since the 1990s.<ref>TSENG, H. (2016). Racialization of Foreign Women in the Transnational Marriage Market of Taiwan. In Zheng T. (Ed.), Cultural Politics of Gender and Sexuality in Contemporary Asia (pp. 205-222). Honolulu: University of Hawai'i Press. Retrieved from http://www.jstor.org/stable/j.ctvvn5tw.16</ref>

==Science and industrial parks{{anchor|Science}}==
[[File:Hsinchu Science and Industrial Park Administration 20101017.jpg|thumb|[[Hsinchu Science and Industrial Park|Hsinchu Science Park]] is home to many of Taiwan's IT companies]]
[[File:Neihu during 2015 winter solstice.jpg|thumb|Taipei [[Neihu Technology Park]]]]

In order to promote industrial research and development, the government began establishing science parks, economic zones which provide rent and utility breaks, [[tax incentive]]s, and specialized lending rates to attract investment.<ref name="about" /> The first of these, the [[Hsinchu Science and Industrial Park|Hsinchu Science Park]] was established in 1980 by the [[National Science Council]]<ref>{{cite web|url=http://www.biotecheast.com/index.php?module=htmlpages&func=display&pid=5|title=Taiwan's biotech-focused Science Parks|publisher=Biotech East|access-date=17 January 2011|archive-date=10 September 2011|archive-url=https://web.archive.org/web/20110910162412/http://www.biotecheast.com/index.php?module=htmlpages&func=display&pid=5|url-status=live}}</ref> with a focus on [[research and development]] in information technology and [[biotechnology]].<ref name="about">{{cite web|url=http://biotech.about.com/b/2008/09/25/science-parks-in-taiwan.htm|title=Science Parks in Taiwan|website=About.com|date=25 September 2008|access-date=17 January 2011|archive-date=7 July 2011|archive-url=https://web.archive.org/web/20110707074939/http://biotech.about.com/b/2008/09/25/science-parks-in-taiwan.htm|url-status=live}}</ref><ref name="reafac" /> It has been called Taiwan's "[[Silicon Valley]]"<ref>{{cite news|url=https://select.nytimes.com/gst/abstract.html?res=F70C11F63D5B0C718EDDA00894D1494D81|archive-url=https://archive.today/20120714032916/http://select.nytimes.com/gst/abstract.html?res=F70C11F63D5B0C718EDDA00894D1494D81|url-status=dead|archive-date=14 July 2012|title=Taiwan's Chip Plants Left Idle by Earthquake|work=The New York Times|author=Sara Robinson|date=22 September 1999|access-date=17 January 2011}}</ref><ref>{{cite news|url=https://abcnews.go.com/Technology/PCWorld/story?id=4715424|title=LSI's China Plan Changed by Taiwan Election|work=ABC News|author=Dan Nystedt|date=24 April 2008|access-date=17 January 2011|archive-date=26 December 2011|archive-url=https://web.archive.org/web/20111226103552/http://abcnews.go.com/Technology/PCWorld/story?id=4715424|url-status=live}}</ref> and has expanded to six campuses covering an area of {{convert|1140|ha|km2}}.<ref name="hsinchu">{{cite web|url=http://www.sipa.gov.tw/english/home.jsp?mserno=201003210003&serno=201003210014&menudata=EnglishMenu&contlink=content/introduction_1.jsp&level=1|title=An introduction to the Hsinchu Science Park|publisher=Hsinchu Science Park|access-date=17 January 2011|archive-date=27 September 2011|archive-url=https://web.archive.org/web/20110927112609/http://www.sipa.gov.tw/english/home.jsp?mserno=201003210003&serno=201003210014&menudata=EnglishMenu&contlink=content%2Fintroduction_1.jsp&level=1|url-status=live}}</ref> Over 430 companies (including many listed on [[Taiwan Capitalization Weighted Stock Index|TAIEX]]) employing over 130,000 people are located within the park, and [[paid in capital]] totaled US$36.10 billion in 2008.<ref name="scienceparks" /> Both [[TSMC|Taiwan Semiconductor Manufacturing Company]] and [[United Microelectronics Corporation]], the world's largest and second largest [[contract manufacturer|contract]] chipmakers,<ref name="toptwo">{{cite news|url=https://www.reuters.com/article/idUSTOE70605A20110107|title=UPDATE 1-UMC posts weaker sales; fresh demand seen|work=Reuters|date=7 January 2011|access-date=17 January 2011|archive-date=11 January 2011|archive-url=https://web.archive.org/web/20110111135100/http://www.reuters.com/article/idUSTOE70605A20110107|url-status=live}}</ref> are headquartered within the park. Since 1980, the government has invested over US$1 billion in the park's infrastructure,<ref name="reafac">{{cite web|url=http://www.taiwan.com.au/Scitech/RandD/Public/report03.html|title=Public Sector Research Facilities|website=Taiwan.com.au|access-date=17 January 2011|url-status=dead|archive-url=https://web.archive.org/web/20090912095402/http://taiwan.com.au/Scitech/RandD/Public/report03.html|archive-date=12 September 2009}}</ref> and further expansion for more specialized parks have been pursued.<ref name="scienceparks">{{cite web|url=http://www.taiwan.gov.tw/ct.asp?xItem=27510&ctNode=1906&mp=1001|title=Science Parks|publisher=[[Government Information Office]], [[Executive Yuan]]|date=25 May 2010|access-date=17 January 2011|url-status=dead|archive-url=https://web.archive.org/web/20110727115945/http://www.taiwan.gov.tw/ct.asp?xItem=27510&ctNode=1906&mp=1001|archive-date=27 July 2011}}</ref> The [[Industrial Technology Research Institute]] (ITRI), headquartered within the park, is the largest nonprofit research organization in Taiwan and has worked to develop applied technological research for industry, including for many of Taiwan's traditional industries (such as textiles).<ref name="reafac" />

Following the success of the first park, the [[Southern Taiwan Science Park]] (STSP), consisting of the [[Tainan Science Park]] and the [[Kaohsiung Science Park]], was established in 1996.<ref name="about" /> In addition to companies, several research institutes (including [[Academia Sinica]]) and universities have set up branches within the park with a focus on [[integrated circuit]]s (ICs), [[optoelectronics]], and biotechnology.<ref name="scienceparks" /> The Central Taiwan Science Park (CTSP) was established more recently in 2003.<ref name="ctsp">{{cite web|url=http://www.ctsp.gov.tw/english/01about/abo_a01_list.aspx?v=20&fr=236&no=237|title=Origins|publisher=Central Taiwan Science Park|access-date=17 January 2011|archive-date=22 April 2010|archive-url=https://web.archive.org/web/20100422153016/http://www.ctsp.gov.tw/english/01about/abo_a01_list.aspx?v=20&fr=236&no=237|url-status=live}}</ref> While the CTSP is still under development, many firms (including [[AU Optronics]]) have already moved into the park and begun manufacturing operations.<ref name="ctsp" /> Like the other parks, CTSP also focuses on ICs, optoelectronics, and biotechnology, with the optoelectronics industry accounting for 78% of its revenue in 2008.<ref name="scienceparks" /> These three science parks alone have attracted over NT$4 trillion (US$137 billion) worth of capital inflow,<ref name="reafac" /> and in 2010 total revenue within the parks reached NT$2.16 trillion (US$72.8 billion).<ref>{{cite news|url=http://www.digitimes.com/news/a20110223PD219.html|title=Taiwan top-3 science parks to generate revenues of NT$2.45 trillion in 2011|publisher=DigiTimes|date=24 February 2011|access-date=23 February 2011|url-status=live|archive-date=25 February 2011|archive-url=https://web.archive.org/web/20110225150735/http://www.digitimes.com/news/a20110223PD219.html}}</ref>

The [[Linhai Industrial Park]], established in Kaohsiung in 1960,<ref>{{cite web|url=http://www.moeaidb.gov.tw/iphw/linhai/en/|title=Kaohsiung LihHai Industrial Park|publisher=Kaohsiung LinHai Industrial Park Service Center|access-date=17 January 2011|archive-url=https://web.archive.org/web/20110507103229/http://www.moeaidb.gov.tw/iphw/linhai/en/|archive-date=7 May 2011|url-status=dead}}</ref> is a well-developed industrial zone with over 490 companies focusing on other industries including base metals, machinery and repairs, nonmetallic mineral products, chemical products, and food and beverage manufacturing.<ref>{{cite web|url=http://www.moeaidb.gov.tw/iphw/linhai/en/index.do?id=20|title=About Us|publisher=Kaohsiung LinHai Industrial Park Service Center|access-date=17 January 2011 |archive-url=https://web.archive.org/web/20111004150453/http://www.moeaidb.gov.tw/iphw/linhai/en/index.do?id=20|archive-date=4 October 2011|url-status=dead}}</ref> The [[Changhua Coastal Industrial Park]], located in Changhua County, is a newer industrial cluster with many different industries such as food production, glass, textiles, and plastics.<ref>{{cite web|url=http://investtaiwan.nat.gov.tw/matter/show_eng.jsp?ID=277|title=Environments of Changhua County|publisher=Invest in Taiwan, Department of Investment Services|access-date=17 January 2011|url-status=live|archive-date=25 September 2020|archive-url=https://web.archive.org/web/20200925143445/https://investtaiwan.nat.gov.tw/homePage}}</ref>

[[Industrial park|Industrial]] and [[science park]]s in Taiwan include:
* [[Central Taiwan Science Park]]
* [[Hsinchu Science Park]]
** [[Hsinchu Biomedical Science Park]]
* [[Nankang Software Park]]
* [[Neihu Technology Park]]
* [[Tainan Science Park]]
* [[Southern Taiwan Science Park]]
** [[Kaohsiung Science Park]]
* [[National Biotechnology Research Park]]
* [[Shalun Smart Green Energy Science City]]
* [[Kaohsiung Software Park]]

==Economic research institutes==
[[File:Institute of Economics, Academia Sinica.jpg|thumb|[[Institute of Economics, Academia Sinica]]]]
* [[Taiwan Institute of Economic Research]]
* [[Chung-Hua Institution for Economic Research]]
* [[Institute of Economics, Academia Sinica]]
* [[Industrial Technology Research Institute]]
* [[Taiwan Livestock Research Institute]]

==Exchange rates==
{{Exchange Rate|TWD|CAD|KRW|JPY|CNY|style=navbox}}
[[File:USD to Taiwan Dollar exchange rate.webp|thumb|center|290px|
{{legend|#FF6262|[[United States dollar|USD]] / [[New Taiwan dollar|Taiwan Dollar]] [[exchange rate]]|outline=#000095}}
]]
[[File:Taiwan Dollar to Chinese Yuan exchange rate.webp|thumb|center|290px|
{{legend|#FF6262|[[New Taiwan dollar|Taiwan Dollar]] / [[Renminbi|Chinese Yuan]] [[exchange rate]]|outline=#FE0000}}
]]

==See also==
* [[Banking in Taiwan]]
* [[Cement industry in Taiwan]]
* [[Defense industry of Taiwan]]
* [[List of banks in Taiwan]]
* [[List of Taiwanese automakers]]
* [[List of companies of Taiwan]]
*[[List of largest companies in Taiwan]]
* [[List of metropolitan areas in Taiwan]]
* [[Made in Taiwan]]
* [[Taiwan Miracle]]
* [[Taiwanese Wave]]
* [[Minimum wage in Taiwan]]
* [[Taxation in Taiwan]]
* [[Transportation in Taiwan]]
* [[Taiwan Stock Exchange]] (TSE)
* [[Textile industry in Taiwan]]
* [[1997 Asian financial crisis]]

==Notes==
{{reflist|group=n}}
{{NoteFoot}}

==References==
{{Reflist}}

==Further reading==
{{Library resources box}}
* Taiwan ASEAN Studies Center; ASEAN Outlook Magazine; May 2013. [http://www.oilseedcrops.org/wp-content/uploads/2013/06/ASEAN-Outlook-Magazine-June-2013-David-DuByne-Myanmars-Overlooked-Industry-Opportunities-and-Investment-Climate-.pdf Myanmar's Overlooked Industry Opportunities and Investment Climate], by David DuByne

==External links==
* {{Official website|http://www.moea.gov.tw/ Ministry of Economic Affairs, R.O.C.}} {{in lang|zh-tw}}
* [http://eng.stat.gov.tw/ Statistical Information Network of the Republic of China] This website serves as a national statistical portal of the Republic of China.
* [http://www.tej.com.tw/ Taiwan Economic Journal]
* [http://rcted.ncu.edu.tw/ Research Center for Taiwan Economic Development]

{{Economy of Taiwan}}
{{Taiwan topics}}
{{Asia-Pacific Economic Cooperation}}
{{World Trade Organization}}
{{Asia topic|Economy of}}
{{Portal bar|Taiwan|Economy}}

[[Category:Economy of Taiwan| ]]
[[Category:World Trade Organization member economies|Taiwan]]