Outsourcing to TAIWAN

Outsourcing to TAIWAN: A Comprehensive Guide for Small Business Owners 

Taiwan is a fast-developing country with superb economic performance. The country is a thriving democracy with a sophisticated market that adapts to changing trends. Taiwan is one of the best outsourcing destinations in Asia and is a key player in the global market. 

As a tiger economy, Taiwan is driven by exports and by rapid industrialization. Along with Hong Kong, Singapore, and South Korea, Taiwan has enjoyed a high rate of economic growth since the 90s. These countries, dubbed the “four Asian tigers” have strict development policies that are encouraged by their governments. For the Taiwanese government, this would mean providing support for many business endeavors and a special priority for business outsourcing amongst other ventures. 

Are you interested in outsourcing your operations to Taiwan? Read this guide and discover the many opportunities Taiwan can offer you. 

Outsourcing Factors in Taiwan You Need to Consider 

1. Smart Machines 

From its humble beginnings, Taiwan’s manufacturing industry has become one of the world’s largest manufacturing powerhouses. The country is one of the driving forces of Industry 4.0 with its export-oriented economy. They are well known for semiconductor fabrication plants, but they are also starting to be known for various machinery like collaborative robots, high-precision CNC cutting machines, and more.  

There are more than half a million skilled workers behind these technological advancements. As a leader in smart machinery, the country is focusing on developing more smart technologies like green energy, biotech, and other solutions to support smart manufacturing.   

2. Government Support 

The Taiwanese government has dedicated organizations to offer support, incentives, and financial support for trade promotion. Those looking to outsource in the country will have plenty of help and will find conducting business easy in Taiwan.  

To boost their economy, their government prioritizes funding startups, immigration policies for foreign investors, and business-friendly legislation. The World Bank has consistently ranked Taiwan within the top 15 countries when it comes to ease of doing business. 

3. Skilled Workforce 

The Taiwanese workforce is a skilled workforce — able to support all the business functions the global market requires of them. Taiwan has a 98% literacy rate with at least 45% of the population holding university or higher degrees. Taiwanese students are also consistently among the world’s top 5 in math and science achievements. 

Most talents you may encounter are proficient in English or Mandarin Chinese. They are also well-known to be skilled in computer science or information systems management. With these, you are sure that your business needs would be supported by skilled and talented people. 

4. Mandarin Chinese Proficiency 

In Taiwan, the most commonly used language is Mandarin Chinese. After English, Mandarin Chinese is considered one of the top languages around the world. In the business world, Mandarin Chinese is one of the most useful languages as the economic strength of the countries using it as their main language is important for companies around the world. 

Globally, there is also a demand for Chinese speakers as this can be a huge edge to companies wanting to enter the global market. Having a workforce who is proficient in Mandarin Chinese can help you blend seamlessly with other countries’ cultures as well as fill in a communication gap between you and the world.   

5. Outstanding Location 

Taiwan is located in the center of the Asia Pacific region. It is the literal heart of Asia with its proximity to huge consumer markets like China, Japan, Indonesia, and Korea. Doing business in the country provides you easy access to the rest of Asia’s largest markets. 

Taiwan is also known as a country full of entrepreneurs and startups. It is the best destination for small businesses to operate and grow. The business climate is strongly supported by government regulations and funding. There are also dependable policies and infrastructures to help businesses expand and develop,   

Notable Industries in Taiwan 

Taiwan is hugely known for semiconductor manufacturing, information technology, and electronics. The country produces over 60% of the world’s semiconductors with Taiwan Semiconductor Manufacturing Corporation (TSMC) leading the charge. Taiwan’s strong capabilities in OEM wafer manufacturing have helped it dominate the global market. 

The service industry is also huge in Taiwan. The sector is made up of food and beverage processing, information technology, transport, advertising, textiles, electronics, and more. The industry is thriving with approximately 60% of the Taiwanese workforce employed in the service industry, 

Taiwan is also known for being home to popular brands such as Acer, Asus, Evergreen, and Yangming Marine. Tesla, one of the world’s most famous companies, has a large portion of their supply chain in Taiwan. 

Aside from those mentioned above, the major industries in Taiwan are: 

  • Electronics 
  • Electrical Machinery 
  • Communications and Information Technology products 
  • Chemicals 
  • Textiles 
  • Iron and Steel 


Outsourcing Challenges in Taiwan 

One of the notable challenges you may encounter is that the Taiwanese workforce is an aging one. The county has a low birth rate and is predicted to be a super-aged society in 2025. This population decline can lead to a decrease in workforce productivity. However, this could mean that you may have older employees who are seasoned and experts in their fields through their years of experience.  

You may also find communicating with your outsourced team hard if you are not familiar with Taiwan’s hierarchical structure. Some managers could be authoritarian and all-important decisions should only be directed to the heads of the firm. But these can easily be addressed if you communicate your needs and requirements immediately to give you and your partners a clear business goal. 

Outsourcing in Taiwan 

Taiwan is an amazing outsourcing destination for most companies. It is in a unique position in the center of Asia’s biggest markets which could help you push your business in the global market. The Taiwanese workforce is also full of skilled talents that have helped Taiwan be the leader in the semiconductor industry. The best thing is that outsourcing in Taiwan would be so easy with their government’s support and business policies. As a small business, your company would flourish and grow in a country where startups and entrepreneurship endeavors are supported and encouraged.  

Are you thinking of outsourcing to Taiwan? We would love to help you out! Book a FREE appointment with Outsource Asia experts today. 


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