Taiwan’s economic developmentTaiwan has a developed market economy. The gross national product (GNP) of Taiwan demonstrates that its economy has been growing steadily in the past, with growth rates ranging slightly above three percent on average over the last decade. Even during the global spread of the coronavirus pandemic in 2020, Taiwan was able to maintain economic growth and was very successful in containing the negative effects of the pandemic. Electronics, petroleum refining, and chemicals are among major domestic industries.
Taiwan’s economy is well known for its advanced electronics industry. The island has been an important producer of electronic equipment since the 1990s and has become an integral part in global value chains. Taiwan has developed a significant semiconductor industry with a market share in global IC fabrication of 77 percent in 2020. Although manufacturing is still very important for the island’s economy, today around two thirds of domestic values generated originate in service activities and nearly 60 percent of the workforce are employed in the service sector.