1 The World Market Place Working with Foreign Companies Taiwan Experience Presented by Mei Chuan CHUANG Republic of China (Taiwan) IAWP Annual Educational Conference International Panel

2 Outline A Brief Introduction to Taiwan Why Foreign Companies come in Taiwan Impacts and Responses

3 A Brief Introduction to Taiwan The 17th largest economy in the world The 14th largest exporter The 16th largest importer The third largest holder of foreign exchange reserves, with over US$180 billion World Competitiveness

4 #13 in 2008 (IMD World Competitiveness Yearbook) #6 in 2008(Business Environment Risk Intelligence-BERI Profit Opportunity Recommendation) #1 in 2007(World Economic Forum- WEF State of Cluster Development)

5 Why Foreign Companies Come in Taiwan Geographical Advantages Various Worldwide Leading Products Made by Taiwan Abundant Capacity for Innovation and R&D Growth Full Functioning of the Industrial Clustering Effect Highly Educated Human Resource

6 Geographical Advantages

7 Various Worldwide Leading Products Made by Taiwan Worldwide Market Share WW No. 1WW No. 2 Motherboard (System & Pure MB)99.0% Cable Modem93.0% Server (System & Pure MB)87.5% Notebook PC87.5% WLAN NIC87.0% VoIP Router84.0% DSL CPE81.0% Motherboard （ Pure MB ） 75.6% LCD Monitor73.4% VoIP TA73.0% PDA71.5% IP Phone55.0% CDT Monitor52.1% Large Size LCD Panel42.8% WLAN AP42.0% DSC43.8% ODD39.2% Server (System)34.9% Source: MIC/III, January 2007

8 Abundant Capacity for Innovation and R&D Growth (2) R&D Growth (1) U.S. Patents Granted

9 Full Functioning of the Industrial Clustering Effect Hsinchu Science Park  Electronics and Information  Software  Optoelectronics Kaohsiung  Petrochemicals  Steel  Electronics Yunlin Technology Industrial Park  Textiles  Optoelectronics Nankang Software Park  Software  Knowledge Industries Southern Science Park  Optoelectronics  Machinery  Foodstuffs  Biotechnology  Environmental Protection Central Science Park  Optoelectronics  Precision Machinery  Nanometer Materials  Aerospace

10 Highly Educated Human Resource advantage is the second most important factor Population of 15 Years and Over by Educational Attainment Literacy Rate: 97.63%(99.4% vs %) Illiteracy Rate: 2.37% According to a survey 63% for high quality human resources Geographical advantage

11 Impacts Talents competition-most office workers want job with foreign company More than nine out of 10 white-collar workers in Taiwan would like to work for a foreign enterprise High salary, good benefits, and broad opportunities" are main reasons. 61% for believe they will have a better future, 58% for good benefits, and 51% for high wages

12 Impacts New KASo Language ability Knowledge Multicultural Sensitive … New managerial concept and framework Performance-based system Working style

13 Competence-based HRP(cont.) Armstrong (2001) -a competence-based integrated HRP Performance management Recruitment & selection Competence framework HRD Reward Management

14 The Company’s Core Competence Management developed eight core competencies: Customer Orientation TeamworkInitiativeResponsible Result Orientation Cost Control & Management Industry knowledge English Ability.

15 Employees’ Competence Gap

16 Responses Attracting investment by establishing a free and open investment system, and by providing a good environment for corporate operations. Providing key statistics, infrastructure, major business expenses, and related laws and regulations Introducing incentive program Delivering intensive training program focus on language and related knowledge and skills International Trade Program

17 International Trade Program Supplying an even balance of English language and trade courses Full-time, six-month program is available to those who have or are receiving their bachelors

18 THANK YOU