What are the 'Five Turning Points' that transformed geopolitical risks into growth for Taiwan's economy? Wise Research releases its latest report offering hints for supply chain reconstruction.

Wise Research, under Wise Consulting Group (Headquarters: Taipei, Republic of China), specializing in Taiwan's business and market trend research, has released an insight report titled "~The True Nature of National Policy that Transformed Geopolitical Risks into Growth~ The Five Turning Points of Taiwan's Economy," which analyzes the historical evolution of Taiwan's macroeconomy and its latest industrial trends.

This report unravels how the Taiwanese economy has reshaped its industrial structure through national policies, linked to domestic and international political and geopolitical risks, across "five turning points." It offers a strategic perspective for Japanese companies to capitalize on the next wave.

## Background to the Report Release: Deciphering the "Shift in Gravity" of Taiwan's Industry

The growth of Taiwan's economy is not merely a result of market principles but a historical product of continually transforming geopolitical "unavoidable external environments" into "new growth engines" through national policies. Currently, Taiwan is experiencing a historical trend of advanced technology reshoring. For Japanese companies considering investment or business expansion into the Taiwanese market, grasping the overall picture of this "shift in gravity" in the industry is indispensable.

## Highlights of the Report: The "Five Turning Points" Driving Taiwan's Economy

This report categorizes the trajectory of Taiwan's economy into the following five phases, explaining the transitions of its key industries and locations.

- Phase 1 (1960s~): Birth of the "Export Processing Zone" in Kaohsiung and light industry
An era where Taiwan shifted towards export-led growth, with labor-intensive and light industries like textiles and home appliance assembly becoming dominant, centered in Kaohsiung.

- Phase 2 (1970s~): "Ten Major Construction Projects" on the West Coast and heavy chemical industrialization
To overcome national crises such as the oil shock, the government led infrastructure development and fostered capital-intensive industries (iron and steel, petrochemicals), completing the current physical framework.

- Phase 3 (1980s~): Establishment of Hsinchu "Science Park" and becoming an IT nation
National strategy fully committed to fostering high-tech industries, establishing an ecosystem for semiconductors and electronic components in Hsinchu (TSMC was founded in 1987).

- Phase 4 (1990s~2000s): "China Shift" and Taipei's specialization in headquarters and R&D
While manufacturing industries moved their factories to China, the northern region, centered around Taipei, advanced into service industries, finance, and R&D functions.

- Phase 5 (2018~Present): Reshoring of supply chains and specialization in advanced technology
Geopolitical risks led to a "U-turn" of capital and factories back to Taiwan. Giant hubs like TSMC were newly established in central and southern regions such as Taichung, Tainan, and Kaohsiung, driving a new consumption boom and soaring land prices.

(Figure 1) "Shift in Gravity" map of Taiwan's industry. Starting from light industry in the south, through heavy chemical industry, high-tech, and R&D, advanced industries are now once again moving south to central and southern Taiwan. (Source: Wise Research)

## Management Hint: Taiwan as a "Strategic Stronghold" in Global Supply Chains

We are currently in the midst of Phase 5, the "domestic reshoring and advanced technology specialization." For business leaders, it is crucial to redefine where their own businesses stand within this major historical trend. The key to growth for the next decade lies in re-evaluating Taiwan not merely as a "manufacturing base" or "market," but as a "strategic stronghold" in global supply chains, factoring in geopolitical risks.

▼Click here for the full analysis report

https://www.ys-consulting.com.tw/column/128426.html

## Upcoming Report Releases

Wise Research plans to release follow-up reports that delve into the forefront of this historical transformation.

"Major City Development Series": Analyzing how cities that flourished with heavy industry are transforming into IT and service industry hubs.

"Science Park Series": Unraveling the current state of Tainan and Kaohsiung, which are rapidly updating Hsinchu's success story.

## About Wise Research

A specialized team with extensive experience in industry and market research. With its unique network and sharp analytical skills, it delivers "live trends" behind the data and supports readers' "management thinking time" with a forward-looking perspective.

## Inquiries Regarding Taiwan Market Research and Research
Wise Research (Wise Soken)
e-mail: research@ys-consulting.com

TEL: +886-2-2381-9711 (Japan time 10:00-19:00)

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