Taiwanese Economy can surpass South Korean Economy?

The Taiwanese companies have started leaving mainland China and are searching for new land for developing their roots looking for new production and development. Which could lead it to have more GDP than the top South Korean Companies.

According to the sources, Taiwan’s GDP per capita is expected to top 36000 US dollars this year, surpassing South Korea at 34,990 US dollars. International Monetary Fund (IMF) has released the data for Taiwan and said that there could be a rise of 6 percent in its GDP, which is more than that of South Korea.

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The Economic researcher has revealed that this could be due to South Korean companies’ dependency on their partners and conglomerates, which are advantageous in terms of the economy but are very slow in responding to the economic contraction.

The possible reason could be a delay in material supply. As we can see the global supply chain for raw materials is already affected and even the bigger companies are facing problems with the stagnant issues in the supply chain.

Taiwan is being benefited from the diversified supply chain. It is regularly boosting its efforts by the regular emphasis on technology, semiconductor technologies in particular. It also started implementing new business-friendly policies reassuring its goals and business development.

Looking at this global companies such as Microsoft and Intel have also increased their investment and exports from Taiwan in the past 9 to 10 years. According to a business research firm, the economic growth of Taiwan has been recorded highest in the world for both the years 2019 and 2020, despite the devastating COVID conditions.

While watching the current status of the global semiconductors industry, it seems to be much more favorable for Taiwan. But Samsung Electronics is also not behind and currently leading the global chip market with innovative chip production techniques and raising the bar to new heights.

TSMC’s market profit is more in chip-making but its global product share is less than that of Samsung, which is 30 percent larger than its competitors. These days the Taiwanese company is focusing more on automotive chips, and Samsung is also competing for more. It has started investing more in its new substrate production line with improved quality, quantity, and technology in the United States and more places.

If Samsung needs to grow further, it has to reassure its investors and increase its raw material sourcing grounds, and we can see it by the company’s latest step by shifting its main chip foundries away from mainland China to South East Asia.

However, it’s our opinion that Samsung needs to reshuffle and rebuild its investment strategies. What do you think about it? you can share your thoughts in the comments below.