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Made in Taiwan Products: Manufacturing Guide for Businesses

February 29, 2024

Taiwan manufacturingThe United States has a strong relationship with Taiwan when it comes to manufacturing. In recent years, it continues to grow as a leading manufacturing country. For 2024, Taiwan’s manufacturing market is expected to grow at a rate of 2.32% with a projected $205.30 billion in USD. You have probably seen “Made In Taiwan” printed on many products you use everyday. What’s the reason for this? Numerous companies have found it extremely advantageous to outsource their manufacturing to Taiwan. This is because manufacturers in Taiwan are able to utilize highly skilled labor for much cheaper than can be found elsewhere, allowing for low costs of products made of metals, plastics, and rubber. 

Top Exports of Taiwan

So exactly what can be manufactured in Taiwan? The answer is almost anything. 60.8% of imports from Taiwan in 2021 were machinery and mechanical appliances. However, Taiwan has also created successful manufacturing facilities for plastics and steel. 7.6% of imports from Taiwan in 2021 were plastics, chemicals, rubber or leather. 9.8% of imports from Taiwan in 2021 were base metals, iron, steel, or tools. 


Outsourcing to Taiwan

Outsourcing manufacturing to Taiwan comes with a number of benefits that often make it the more attractive option when compared to manufacturing domestically. Most businesses will see an improvement in productivity, cost, and supply chain quality when they make the decision to outsource to Taiwan. Companies importing into the U.S. will also benefit from lower import duties than China, along with a more politically stable environment to manufacture.



One of the major benefits of outsourcing to Taiwan is the increase in productivity. Taiwan first started providing mass manufacturing in the 1950s, and this industry has been growing ever since. The country has invested heavily in manufacturing factories, and also has a large workforce of skilled labor to draw from. These factors allow Taiwanese manufacturers to produce products at a higher rate of speed and at a much higher quantity than is possible domestically (USA). Additionally, Taiwan’s labor productivity is currently steadily increasing, having increased to 119.49 points in October from 114.40 points in September of 2023. This means that Taiwan is likely to continue to be a smart choice for outsourcing well into the future. 


Cost of Manufacturing Goods

When manufacturing a product, one of the most important factors to consider is cost. Even a difference of pennies per unit can save a business monumental amounts when they are producing hundreds of thousands of units. Which leads us to the next benefit of outsourcing to Taiwan: the low cost of manufacturing goods there. In general, Taiwan has a low-cost economy, allowing for raw materials needed for manufacturing to be purchased more cheaply than they could be domestically. In addition, the cost of living is much lower in Taiwan, allowing for lower wages to be paid while still obtaining the labor you need. Due to these factors, Taiwan is one of the cheapest countries to manufacture products.


Supply Chains

The final benefit of outsourcing to Taiwan is the supply chain capabilities found there. When outsourcing, supply chain quality is a major concern. Delays in the supply chain can cause delays and missed quotas, which can negatively impact profits and even cause a business to fail. With IPS, companies have reassurance of efficiency through experienced product management. This takes the burden off of your business, eliminating the need to handle the Taiwanese mass production facilities internally. 

Fortunately,  Taiwan’s geographic location also allows manufacturers there to tap into the sprawling Asian supply chain. With a close proximity to suppliers of both material and equipment, Taiwanese supply chains are fast and efficient. This supply chain efficiency allows manufacturers in Taiwan to consistently meet quotas while manufacturing goods to a high standard of quality. 


Understanding Taiwan Customs

According to the International Trade Administration, all shipments to or from Taiwan must go through the country’s Customs Administration. Mandatory duties are paid when importing goods from Taiwan. These duties are assessed using the Cost of goods, Insurance, and Freight to the customs border (CIF) value. 

Dealing with customs clearance from Taiwan requires a strong understanding of the process in order to help avoid unwanted delays and costs. For this reason, partnering with IPS is an ideal solution. We handle customs clearance for you to remove language barriers and misunderstandings during the export/import process. 

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