Taiwanese investment in the electronics industry of the People's Republic of China | |
| Author | Lin, Man-chiao |
| Call Number | AIT RSPR no.SM-98-85 |
| Subject(s) | Investments, Taiwan--China Electronic industries--China |
| Note | A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration. School of Management |
| Publisher | Asian Institute of Technology |
| Series Statement | Research studies project report ; no. SM-98-85 |
| Abstract | The economic development of Taiwan has advanced with rapidity over the past 40 years, creating the so-called "Taiwan Miracle". However, the dramatic changes in both domestic and world economy have sharply raised the production costs of Taiwan's manufacturers, eroding their ability to compete with producers in the developing countries of the Asia Pacific. Since the mid-l 980s, many of the enterprises have shifted their operations to lower-cost environments abroad. China is the most attractive to Taiwanese industries for its cheap labor, low overhead costs, and business environment without language and culture barrier. Up to July 1997, the cumulative investments in China approved by Taiwan government was US$7.65 billion, and the electronics industry was the largest investor with investment around US$1.35 billion. Massive investments being channeled to China could eventually result in Taiwan becoming less competitive while building China's competitiveness, especially to electronics industry which has been chosen as a strategic industry since 1980s. This, therefore, poses a critical issue. This study tries to develop a framework for examining Taiwan investments in the electronics industry of China has based on a review the Taiwan investments in China, make a comparative analysis between Taiwan's and China's electronics industry, identify and evaluate the reasons, present performance and problems of Taiwanese investors in the electronics industry of China, and formulate recommendations for public and private sector. Based on the framework, the questionnaire set was developed for surveying the investing companies. The significant findings of this research are: The most important reasons of parent company investing in China are increased labor cost and intense competition within the industry of Taiwan, and China's cheap labor and growing domestic market. The investing companies are relatively strong in the technology of production but weak in the development of products. They rely on parent company's support for technology and finance. Most companies improve performance after3 to 4- years of investing The investing companies can save 28% of the product's unit costs by manufacturing in China. The most serious problems facing investing companies are human resource and production issues. Based on the survey findings, some recommendations are given to host country, investing companies, and home country. |
| Year | 1998 |
| Corresponding Series Added Entry | Asian Institute of Technology. Research studies project report ; no. SM-98-85 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, J.C.S. |
| Examination Committee(s) | Swierczek, Fredric William;Blichel, Bettina |
| Scholarship Donor(s) | Government of the Republic of China |
| Degree | Research Studies Project Report (M. Sc.) - Asian Institute of Technology, 1998 |