Taiwan Today

November-December saw the Taiwan economic spotlight focused on electronics. The Fifth Asian Electronics Conference was convened in Taipei November 24-26 and the first meeting of the Asian Electronic Union on November 27. Many of the nearly 50 overseas delegates then visited the Kaohsiung Export Processing Center. Opened on November 24 tor a 12-day run through December 5 was the 1969 Electronic Exhibition at the China Sports and Culture Center. This show drew attendance of tens at thousands to see the electronic products at 85 manufacturers tram the United States, Japan, Australia, Holland, Hongkong and the Republic of China. What made all this doubly remarkable was the tact that Taiwan didn't even have an electronics industry worthy of the name a decade ago. In this brief period exports have grown from virtually nothing to an expected volume of US$120 million this year. The 150 plants are making a wide variety of products - from the tiniest components to television sets, other instruments of home entertainment and computers. Total number of products is in excess of 100 and continuing to rise.

Taiwan's electronic assets include reasonable wage costs for semi-skilled labor and a steady supply of college-trained engineering talent. About a third of the 85 institutions of higher learning offer courses in engineering, including electronics. On-the-job experience is gained by students during vacations. Young men trained in electronics can pick and choose among jobs, not only in Taiwan but also in Hongkong, Singapore and other countries of Southeast Asia. Exports began with transistor radios in 1962 and go to every continent. The value of overseas sales was US$70 million in 1968 and is expected to top the US$200 million mark for 1970. Most of the products made by foreign invested factories are exclusively for sale abroad and are not seen in the Taiwan market.

These are scenes from the Electronics Exhibition. One of the interested visitors was Vice President and Prime Minister C. K. Yen, above, whose college major was chemistry. Of the 85 exhibitors, 32 were from abroad. This is a reflection of the great foreign interest in Taiwan electronics. General Instrument Corporation of the United States built the first foreign-financed factory in 1964 and 67 other foreign investments have been made in electronics since. This does not include the overseas Chinese. There are 40 Japanese, 24 American and 3 Dutch investments. Americans lead in the amount of financing (US$85 million), followed by the Dutch at US$22 million and the Japanese at US$10 million. Chinese investment totals US$30 million. Most electronic plants are located in northern Taiwan with Taipei and Tamsui as the centers of production. However, the Kaohsiung Export Processing Zone has attracted 26 factories. Electronics is employing 30,000 people, accounting for 6 per cent of the total industrial labor force.

Electronics Exhibition booths totaled 151, of which 85 displayed the products of domestic factories and 66 showed electronics from Japan, the United States, Holland, Australia, Canada and Hongkong. Public interest was especially high in color television, which came to Taiwan virtually on the eve of the show. TV shows were presented live in color and from Taipei's two stations, TTV and CTV. Television got its Taiwan start in 1962 and the second commercial station came on the air in October of this year. More than half a million black and white sets are in operation and color sets are selling well despite a minimum price of nearly US$600 for a 19-inch model. Both B&W and color sets are made in Taiwan, although some of the components are imported. One new plant will be making picture tubes next year. The percentage of components that can be made domestically is rising steadily.

The Fifth Asian Electronics Conference opened at the Mandarin Hotel November 24. This was the first such meeting ever held outside Japan. Delegates included 33 Chinese and 45 from Australia, Ceylon, Hongkong, Indonesia, Iran, Japan, Korea, Malaysia, Philippines, Ryukyus, Singapore, Thailand, Vietnam and UNESCO. Vice President C.K. Yen told the conferees that the Republic of China trails Japan and the West in electronics progress but hopes to catch up. He said that electronics inevitably will play a steadily increasing role in the relations between countries and among men. Economic Affairs Minister Y. S. Sun said electronics affects the daily life of people and plays an important role in economic development. Among the subjects considered at the meeting were (1) collection and exchange of technical and marketing information; (2) exchange of visits by managers, engineers and technicians; (3) technical cooperation and training programs; and (4) manufacture of low-cost TV sets and radio receivers for developing countries. Decision to hold the Fifth Conference was a testimonial to Taiwan's rapid electronics progress in a comparatively brief time. Some observers think electronics will supplant textiles as the leading export.