Not only does this benefit them as a port destination, but the influx of trade goes through Taiwan with the majority of manufactured goods of the Pacific region flowing through their ports. Since Taiwan has a favorable relationship with the Western states, it has been able to absorb the growth of the East Asian region and serve as an effective broker for traffic of goods. Thus it plays a central role within the region as a broker between lesser developed nations and the developed super powers.
Not only does Taiwan hold an enviable position within global trade, but it also has developed its internal capacity to become a manufacturing force. Taiwan has focused its industries on two key developments, high end technology products including semi-conductors and high end technology product development. The Taiwan Semiconductor Manufacturing Company is the world's largest independent semiconductor foundry. As a joint venture through subsidized state funding, TSMC is one of the most powerful and technology oriented semiconductor companies in the world. Advances within Taiwan technology innovation have pushed its capacity beyond their limits of population and workforce. As a result of their high end production and strategic supply chain advantage. Taiwan is able to attract market capitalization from ATI, Broadcom, Conexant, Marvell, and NVIDIA among other very prominent transnational powerhouses. The estimated market capitalization of Taiwan's semiconductor industry is over 82 billion dollars. In addition to their astounding growth within the semiconductor business, Taiwan has been able to nurture an environment of high technology growth within software and hardware manufacturing. They are Apple's principle chip manufacturer for the past decade as well as part of IBM's network of dealers.
The combination of high investment in education as well as their position as a global and regional resource within global supply chains as allowed them to cultivate a very well trained workforce focused on developing high end manufacturing products and focused on innovation. One of the reasons that Taiwan has succeeded as a global player despite the wavering of other East Asian regional player is their ability to innovate and the strong entrepreneurial roots within the nation. One of the principle characteristics of its business development and industrial sector is their "daring entrepreneurship." Over fifteen percent of Taiwan's overall resources are based within startups. Through its unique high end skill level and systematic human resources and risk takers, Taiwan has emerged as a global force throughout the industry.
Finally, Taiwan's location as a primary port nation for the East Asian region has allowed them to become a manufacturing integration center. They are at the nexus of American research and development, Hong Kong commerce, and Chinese raw manufacturing. By connecting all three levels of these facilities they have been able to quickly integrate themselves to become an integral part of the development process. This has culminated in their ability to quickly expand beyond focal points and work within high margin industries rather than focus purely on manufacturing output.
There are significant opportunities for Taiwan within the new world of globalization. However, along with these opportunities come significant risks that have caused the Asian sector in general to destabilize. Taiwan has excellent relationships with the international community, as part of the WTO they have legitimized their legal system much more than most East Asian players to become one of the most friendly atmospheres for foreign investment. Thus, they become an ideal opportunity for cooperation with foreign investors towards greater foreign direct investment within their economy and provide an access point to the Asian market. Protecting Taiwan's positioning within the globalize world has become reliant upon laws and policies that makes Taiwan part of the global supply chain. As part of the huge investment in worldwide commerce, and its positioning in the Pacific, Taiwan has already built a vast network within manufacturing and supply chain distribution. They have enacted numerous laws that protect their relationships by providing built in advantages for favored Western relationships. Taiwan for instance provides tax exemption for high technology transnational that choose to build manufacturing operations within the Taiwan mainland. They similarly offer very generous compensation to returning nationals pursuing entrepreneurship. The Taiwan government ranks fifth in the world in overall expenditure on start-up funding. They have built numerous billion dollar incubator efforts throughout Taiwan and focused on Taipei to increase the level of innovation and entrepreneurship on the mainland. These investments have yielded significant benefits for their economy as they are carefully pursuing strategies for growth and expansion...
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