Taiwans Electronics Industry losing its Market Shares to Chinese Counterparts

Published By : 17 Aug 2015 | Published By : QYRESEARCH

Electronics contribute to almost 30% of the overall GDP in Taiwan’s economy. Taiwan successfully journeyed to electronics manufacturing as an economic mainstay in 1960s. For years, the electronics industry in the country has remained highly dependent on exports, since the domestic electronics consumption in Taiwan is not adequate to support the country’s electronics industry. 


Before the emergence of China in the forefront of the global electronics manufacturing, Taiwan enjoyed a dominance in areas such as personal computers, laptops, and notebooks. Taiwan started leveraging from manufacturing opportunities in China very early. Despite it being a win-win strategy by Taiwan, the China-based companies gradually ate away the market share held by the electronic companies in Taiwan and in some of the most significant areas. A very good example of this change in the advent of Lenovo in the PC market. The scenario as it stands now, Chinese companies enjoy a major share of the smartphone and flat panel television market, pushing Taiwanese companies to later slots. Compared to China-based companies such as Toshiba, Samsung, and other, Taiwanese companies did not achieve much technical edge in semiconductor memory manufacturing. Moreover, companies representing Taiwan are also drastically losing shares to top four players in the market for SRAM, DRAM, and Flash Memory. 


However, what can prove to be a good news for Taiwan is that TSMC, the biggest semiconductor foundry in the world based out of Taiwan is significantly increasing its share in the market. But, its Chinese counterparts are catching up faster than expected. SMIC that has already emerged in the industry forefront is the leading IC foundry in China and makes 28 nm chips. There are high chances that over the time the Chinese Companies will slowly overtake the Taiwan-based semiconductor manufacturing companies. 


So finally, the Taiwanese electronics industry is making much less benefits from its China-investment. Escalating wages in China is also hindering the Taiwanese electronics industry from growing further. 

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