This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 11/5/2019

Overview

Taiwan is a well-known ICT manufacturing hub due to its strong ICT industry base, robust semiconductor manufacturing clusters, and other related capabilities. These advantages have enabled it to rapidly develop advanced ICT-related products and services.
Many Taiwan companies provide Original Design Manufacturer (ODM) services to U.S. ICT suppliers. Others have established strong supply chains with U.S. suppliers as intermediaries, allowing their businesses to expand throughout Southeast Asia.
 

Leading Sub-Sectors

  • 5G
  • Artificial Intelligence (AI)
  • Audio production equipment for broadcast and television
  • Augmented Reality (AR)
  • Big Data
  • Broadcasting hardware equipment
  • Business application software
  • Business intelligence-related applications
  • Cybersecurity software
  • Cloud computing security software
    • Secure cloud connectivity
  • Data Leakage Prevention (DLP)
  • Identity and Access Management (IAM)
  • Information security solutions
  • Information systems integration and consolidation solutions
  • Mobile computing
  • Secure Content and Threat Management (SCTM)
  • Security and Vulnerability Management software (SVM)
  • Storage solutions (hardware-embedded software)
  • System and network management software
  • Virtual Reality (VR)
 

Opportunities

Cybersecurity, Software, and Computer Services

Taiwan’s cybersecurity market is estimated to be worth about $1.6 billion. According to the Industrial Technology Research Institute (ITRI), nearly 80 percent of global network security hardware equipment is produced in Taiwan. Software and large-scale security solutions are mostly purchased from foreign suppliers and after-sales service is provided by local system integration vendors. Israeli software suppliers are the main competitors to U.S. software suppliers. A $46.8 million annual special budget allocation to upgrade the central and local authorities’ cybersecurity infrastructure and management has sparked interest in cybersecurity enhancements around Taiwan in both the public and private sectors.
The Taiwan authorities have identified cloud and mobile computing as the most promising sectors in Taiwan’s computer software and service industries. Strong market demand for network services is driven by the rising popularity of online services such as gaming, shopping, music, and video. Many U.S. content providers and platform developers work with domestic service providers to localize their product offerings for the Taiwan market.
The Taiwan Cyber Security Management Act went into effect in January 2019. Central and local authorities, public organizations, and critical information providers are regulated by the act, and violations are subject to fines of up to NT$5 million ($167,000). The Taiwan authorities announced a special budget of NT$1.4 billion ($46.8 million) per year (from 2017–2020) to assist both central and local authorities in improving their cyber security infrastructure and management. More broadly, the Act has raised awareness of the need for manufacturers to invest in additional cybersecurity tools and attracted foreign technology firms hoping to supply Taiwan’s increased cybersecurity demand.
 

Broadcasting

Growth in Taiwan’s broadcasting market is primarily driven by the development of both content and equipment for the local telecommunications sector. The entertainment market was worth $15.8 billion in 2017 with a growth rate of 4.4 percent compared to last year. Local cable TV penetration was 57.6 percent (2019Q1) and digital delivery penetration was 99.9 percent (2019Q1).
Taiwan imports about 80 percent of its telecommunications/broadcasting equipment. Over 50 percent of imported telecommunications equipment comes from China, primarily originating from Original Equipment Manufacturing (OEM) and Original Design Manufacturing (ODM) factories. Taiwan’s broadcasting equipment market is following a Japan-led trend by moving from 4K to 8K resolution. On June 13, 2019, the Executive Yuan’s Board of Science and Technology announced the 5G Action Plan, which will invest nearly $650 million in 5G- and AI-related development between 2019 and 2022. Until 5G is widely adopted, U.S. broadcasting and equipment suppliers that produce 4K-related products and services will have a good market in Taiwan. The United States enjoys an approximately 10 percent market share of Taiwan’s imported telecommunications equipment.
 

Internet of Things (IoT)

Taiwan’s strong ICT manufacturing sector; more than 80 percent national internet usage rate; and respect for cybersecurity, intellectual property rights, and privacy make Taiwan companies attractive partners for U.S. companies interested in pursuing IoT sub-sector opportunities. Furthermore, Taiwan companies often seek partnerships with U.S. companies when expanding beyond Taiwan.
The “Forward-Looking Infrastructure Development Program” is Taiwan’s most important program promoting IoT development. The 2017-2020 budget allocated $13.9 billion to fund development projects in green energy, digital infrastructure, railway technology, and protection of the aquatic environment. Under this program, smart city development throughout Taiwan has seen localities implement IoT innovations including smart governance, smart transport, and smart healthcare.
 

Web Resources

Trade Shows

CS Taipei will lead several delegations of local Taiwan importers to ICT-related trade shows in the United States for matchmaking opportunities with U.S. companies: In 2020, the following ICT-related local trade shows will be held in Taipei, Taiwan:

Relevant Authorities

U.S. firms interested in learning more about the ICT and Telecommunications market and seeking to expand their export opportunities to Taiwan are encouraged to contact CS Taiwan Commercial Specialist Rita Chen at Rita.Chen@trade.gov or visit our website.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.