Taiwan's Dominance in Tech Industry: A Blessing or a Curse?
Taiwan, a tech powerhouse, is a major player in the global economy and the tech industry, producing over 60% of the world's semiconductors and 90% of advanced chips. This has fueled Taiwan's economic growth, with GDP rates of 3.4% in 2020, 6.6% in 2021, and 2.6% in 2022. However, heavy reliance on the tech sector poses risks, as seen in the vulnerability to geopolitical tensions and trade disruptions.
Despite efforts to diversify trade partners and attract foreign investment, Taiwan's tech sector remains a key driver of its economy. Energy security and talent shortages are pressing issues that need attention. BofA analysts recommend strategic measures such as improving energy security, addressing talent shortages, and diversifying the economy into high-value industries like semiconductor design and renewable energy.
In conclusion, while Taiwan's tech dominance has fueled economic growth, it also exposes vulnerabilities that need to be addressed for long-term sustainability. By taking strategic measures to address energy security, talent shortages, and diversification, Taiwan can secure its position in the global economy and mitigate risks associated with heavy reliance on the tech sector.