Services

Taiwan industries have gradually moved to capital and technology-intensive industries from more labor-intensive industries, with electronics and information technology accounting for a third of the industrial structure. Industry in Taiwan primarily consists of many small and medium-sized enterprises (SME) with fewer large enterprises. Traditional labor-intensive industries are being moved off-shore and replaced with capital and technology-intensive industries. The structure of the industry in Taiwan includes a handful of companies at the top along with many small and medium-sized enterprises (SME) which account for 85% of industrial output. These SMEs usually produce products on an original equipment manufacturer (OEM) or original design manufacturer (ODM) basis, resulting in less resources spent on research and development. 

Taiwan leads the world in ODM. It gets even more impressive when you look at the top worldwide ODMs. For example top 10 ODM manufacturers of electronics in 2020 were all Taiwanese (Pegatron, Quanta, Compal, Wistron, Inventec, Lite-On, Cal-Comp, Qisda, 
MiTAC, and Wistron NeWeb). This trend continues in other sectors. The four largest golf OEM are all Taiwanese. Major producer of sporting goods with ~50% of production being indoor fitness equipment. The conclusion is pretty stark.

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