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Key Growth Industries

 

Top Ten Key Policy-Driven Growth Industries

Taoyuan city government has stated the following business development policy objectives: “Enhance strong industries, lift weak industries, and develop new and creative industries.” To do so, it will focus on manufacturing, emerging industries, and cultural and creative industries, pursuing growth in ten key sectors: i) Electronic Components, ii) Electric Vehicles; iii) Functional Textiles; iv) Green Industries; v) Business Logistics; vi) Cloud Computing; vii) Pharmaceutical Biotechnology; viii) Design and Exhibition; ix) Culture and Tourism; and x) Healthcare.

Taoyuan Rising –Ten Key Growth Industries
 Ten Key Growth Industries
ManufacturingElectronic Components, Electric Vehicles, Functional Textiles, Green Industries
Emerging industriesBusiness Logistics, Cloud Computing, Pharmaceutical Biotechnology
Cultural and creative industriesDesign and Exhibition, Culture and Tourism, Healthcare

Electronic Components

Taoyuan city's top three elecotronic components industries are print circuit board (PCB), liquid cystal display (LCD) and LCD components, and integrated circuit (IC) manufacturing. Examples are Unimicron, Compeg, and Gold Circuit Electronics in the PCB industry; AU Optronics, Chunghwa Picture Tubes, and Wintek in the LCD industry; and Wafer Works, Inotera Memories and Nanya in the IC industry.

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Source::Factory Calibration Data (2013)

Electric Vehicles

The production cycle of an electric vehicle involves many industries, from the initial planning and design stage to the final distribution stage. In particular, electric vehicles rely on batteries, motors, and power control systems, which together power these vehicles. In Taoyuan city, one can find a complete supply chain for manufacturing electric vehicles, from the battery modules and current converters to power motors. For example, Delta Electronics Inc. is the world's largest power supply manufacturer. From a macro perspective, there has been excellent development downstream as well as moderate achievements midstream; the upstream material manufacturers have been limited because of a lack natural of resources and thus hold a low market share. In addition to automobiles and auto parts manufacturers, Chunghwa Telecom Institute has a specialized research and development arm in Taoyuan, but the region currently lacks capacity for testing and certification.

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Source: Taoyuan City Industrial Development Strategy Final Report (2012)

Multi-functional Textiles

  

Taoyuan has had a long history in the textile industry, with the formation of industrial clusters and a complete industrial chain. Manufacturers from every stage of the supply chain can be found here, giving Taoyuan a global competitive advantage in upstream synthetic materials, advanced textile machinery, and pioneering textile technology. At the same time, textiles are also a key player in central government policies aimed at specializing traditional industries.

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Source: 2014-2015 Taiwan's Environmetal Protection Industry Development Dynamics and Outlook

Business Logistics

Taoyuan focuses primarily on shipping and storage to develop its business logistics industry. Taoyuan has businesses that specialize in every stage of the supply chain in import export logistics, leveraging the capabilities of industrial clusters. Similarly, there are companies based in Taoyuan that specialize in each stage of distribution logistics, from wholesale transport to circulating warehouses to express delivery. Furthermore, the distribution centers for Taiwan's major domestic supermarkets and hypermarkets are all located in Taoyuan, demonstrating that Taoyuan has established sophisticated channels for retail distribution.

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Source: Taoyuan City Industrial Development Strategy Final Report (2012)

Cloud Computing

To develop the core cloud computing services industry, Taiwan relies on its strengths in hardware design and manufacturing in the information technology and communication sector. This has laid the groundwork for developing hardware for cloud data center servers, cloud storage, networked services, etc., with a focus on local production and low-cost supply. If we divide data centers into key physical components (chassis, power supply, heat sink) and key parts (IC and others, servers, storage devices, communication equipment and systems integration), the industrial chain of Taoyuan's cloud computing data center would be shown below:

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Source: Taoyuan City Industrial Development Strategy Final Report (2012)

Pharmaceutical Biotechnology

Taoyuan's major pharmaceutical biotechnology manufacturers include businesses such as U.C. Pharma, Sintong Taiwan Biotech Co., Grape King Bio, and Kwangdong Pharma. They are located primarily in Xinwu, Taoyuan, Zhongli, and Pingzhen. Their main areas of operation include prescription medication, Chinese medicine, cancer treatment medication, and preventive care medication.

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Source: Industrial Chain Information Platform; Taoyuan Industrival Development Strategy

Design Facilities and Exhibition Venues

Taoyuan also offers design facilities and exhibition venues. For example, most of the universities in the city have established design departments, demonstrating an abundant design capacity. This pairs well with existing exhibition halls and public spaces such as the Taoyuan Performing Center, Zhongli Arts Center, Taoyuan Train Station, Taoyuan City Hall, etc., as well as future spaces such as the World Trade Center and the Convention Center in the Qingpu Special Zone. Combining with the MRT stations currently under construction, it is clear that Taoyuan can effectively meet the requirements for developing a design and exhibition industry.

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Source: Taiwan Institute of Economic Research

Cultural Tourism

In the past Taoyuan was known for its manufacturing industry, but in fact the city has all kinds of ethnic culture as well as diverse natural ecosystems, which together make it an attractive tourist destination. It is home to ethnic minorities such as Fujianese, Hakka, and other indigenous ethnic groups, and contains wetlands, sand dunes, and other scenic destinations. These resources provide an important foundation for the development of a tourism industry.

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Source: Taiwan Institute of Economic Research

Healthcare

Taoyuan is home to Taiwan's largest international airport and an advanced transportation network. The Department of Health (now merged into the Ministry of Health and Welfare) had previously planned to establish an international medical park near the Taoyuan High Speed Rail Qingpu Station, which would facilitate international medical exchange and encourage Taiwan's medical industry to go global. This demonstrates that Taoyuan has excellent conditions for developing the healthcare industry. In addition, the city's medical equipment manufacturers can benefit from synergies with electronic components manufacturers to develop electronic medical equipment. Taoyuan's medical institutions are abundant and put Taoyuan in a good position to futher develop its healthcare industry.

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Source: Taiwan Institute of Economic Research

Update:106-10-26
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