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Although Taiwanese industry started out mass-producing many of the world’s low-cost goods, today it offers some of the most innovative, efficient and high-quality products and services on the planet.
Long gone are the days when Taiwan was known as a mass manufacturer of low-cost goods. What emerged as a manufacturing powerhouse in the 1950s, when Taiwan signed a mutual defense treaty with the U.S. that translated into foreign aid and investment for the island’s economy, and a strategic ally in the Asia-Pacific region for the U.S., transformed over the decades into a center of high design and technological innovation.
Combining Western industrial processes and cost-effective local labor, Taiwan’s industrial output increased dramatically, making it a manufacturing hub for some of the world’s most influential brands in a wide variety of sectors, from textiles to toys to household appliances.
By the 1990s, Taiwan had become a global force in the electronics industry, with more than 80% of the world’s laptop design manufactured on the island, and the “Made in Taiwan” (MIT) label gaining worldwide recognition. Later, when market liberalization allowed companies to trade globally and local factories lost their competitive edge, the Taiwanese industry had to reinvent itself again.
Learning from past mistakes, it began to invest in its own intellectual property. Today, Taiwan’s per capita patent registration is one of the highest in the world, second only to China, the U.S., Japan and South Korea, and places it among the most knowledge-driven Asian economies. Although current World Intellectual Property Organization (WIPO) indicators do not mention Taiwan, in 2023 the Taiwan Intellectual Property Office (TIPO) received a total of 72,607 patent applications, which would place it among the top 5 countries in the world, a distinction that has been held for more than a decade, as in 2014 Bloomberg ranked Taiwan first in patent activity, using U.N. data.
Additionally, the Industrial Development Bureau (IDB) of the Ministry of Economic Affairs launched the MIT (Made in Taiwan) Smile logo and certification system, to improve the quality and image of Taiwan-made products. To date, a total of 112,605 products manufactured by 2,242 companies have been certified to carry the Smile logo and are sold in 5,686 stores across Taiwan.
Sales of these products have reached 65.4 billion Taiwanese dollars since the IDB started the program in 2010. Moreover, to encourage both enterprises and consumers to give priority to environmentally friendly products, in 2022 the “Taiwan-Made MIT Smile Product Certification System” created the “Green Mark” in cooperation with the Ministry of Environment, with a total of 73 environmentally friendly product specifications adopted so far.
Taiwan’s innovation is not just technical – it’s also cultural, and often architectural. One powerful example is The Grand Hotel Taipei, a landmark that reflects the island’s modern identity. “This hotel witnessed Taiwan’s many changes: from a dictatorship to a vibrant democracy. This is now the people’s hotel,” says Chu-Lan Yeh, Chairwoman of The Grand Hotel. Once the host of dignitaries from across Asia during Taiwan’s diplomatic heyday, the Grand Hotel is now undergoing renovations aimed at reaffirming its status as a cultural icon – one that welcomes the world to experience Taiwan’s unique spirit.
Nowadays, Taiwan is a major global player in sectors such as computer and information technology, including the semiconductor industry, a key source of Taiwan’s economic strength, with more than 90% of the world’s advanced chips manufactured there; television and home entertainment; and audio and communication technology, which demonstrate how efficiency, high quality, aesthetic beauty and technical sophistication can combine to set new standards in design and manufacturing. One company that exemplifies this fusion of design and technological innovation is REXLiTE, a leader in smart home and living solutions.
“The REXLiTE story began with our journey as interior designers,” explains Design Director Daphne Hsieh, “our shift from lighting solutions to the REXLiTE AI Smart Space system reflects both an evolution in our industry and our vision for improving contemporary living spaces.” This evolution led them to first spearhead the widespread adoption of LED lighting in Taiwan and pioneer the lighting design industry’s transformation to a more design-centric approach. And later, as the LED luminaire industry reached its maturity stage with unprecedented growth and development, REXLiTE refocused its efforts on the development of smart home and building systems, community management systems and cloud-based operations management platforms. “These innovative solutions align perfectly with current consumer demands and are strongly supported by the Taiwan government as part of its strategic initiatives,” says Jason Wang, CEO of REXLiTE.
While these developments demonstrate that Taiwan is setting new standards in both technology and the design of everyday products, there are also other areas in which Taiwanese products and services have demonstrated creative excellence. One such area is logistics, a sector of key importance domestically and internationally, especially since many global manufacturers rely heavily on suppliers and production facilities located in the Asia-Pacific region. Among Taiwan’s leading logistics companies, Dimerco holds a special place, as it provides reliable and comprehensive logistics and transportation solutions, all while offering a truly personalized and fully digitized service. “We are constantly working on developing and improving our own digital system, our customer service and our digital marketing to remain competitive,” says CEO Jeffrey Shih.
Not only does Dimerco deliver to more than 300 locations in 67 countries (of which more than 130 are in the Asia-Pacific region), and is the top 25 freight forwarder by volume with Asia’s leading air and ocean carriers; but it has the flexibility to adapt to each customer’s needs, and the technology to offer a fully traceable and secure service, thanks to its patented Data Synchronization Network, a cloud-based technology platform that provides a one-stop resource for cargo tracking and performance monitoring. “We don’t want to be the biggest freight forwarder; what we want is to be recognized among the best providers. So when people talk about global logistics providers in Asia, they will think of Dimerco,” says Chairwoman Wendy Chen.
Furthermore, despite the current global uncertainty caused by the second round of the US-China trade war and possible tariffs to be imposed on Taiwan’s semiconductor industry, both the Taiwanese government and global analysts remain optimistic about Taiwan’s global leading role in the ICT sector. President Lai Ching-Te recently stated that the government will continue to encourage Taiwanese companies to expand their investments in the U.S. and increase acquisitions to “promote balanced trade” between the two sides. For example, Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has already committed to invest some $65 billion to build three semiconductor fabs in Arizona.
Moreover, between 2023 and 2024 Taiwan’s investment in the U.S. accounted for more than 40% of its total overseas investment, making it the top destination for Taiwanese investors. Another key point is the fact that, as several U.S. analysts have pointed out, economic sanctions on Taiwan would not boost U.S. chip manufacturing overnight, as building a chip factory requires billions of dollars and many years of construction; rather, they could seriously hurt U.S. technology companies that rely on Taiwanese chip supply, such as Apple, Nvidia, Qualcomm, Intel and AMD, and ultimately affect U.S. consumers. Bilateral cooperation in high-tech areas has always been mutually beneficial for Taipei and Washington. As Taiwan’s Ministry of Economic Affairs recently stated, “Taiwan and the U.S. are reliable and trustworthy supply partners in both democracy and business. The U.S.-designed, Taiwan-foundry model has since created a win-win business model for both sides.”
Above all, we are confident that the ingenuity and adaptability demonstrated by Taiwan, as well as the high quality of its products and services, will continue to guarantee it the prominent place it has so deservedly achieved in recent decades.