February 2021 | Vol

MESSAGE FROM BAYER Bayer: Transforming Healthcare through Collaborations and

Stefan Oelrich, Member of the Board of Management and Breakthrough Innovation President, Pharmaceuticals Division, Bayer

inding effective solutions to the world’s health issues to treatment, empowering patients to make informed, healthy requires novel, holistic approaches and collaborative decisions and take a more active role in their own healthcare. F ingenuity. Healthcare companies must therefore One Drop’s existing diabetes management approach has been increasingly shift their focus to the research and development expanded through its collaboration with Bayer into a holistic of medical technologies, biopharmaceuticals, and innovative digital therapeutics platform. This technology offers a digital, therapies to treat conditions and diseases that are difficult or smart form of integrated care that learns from vast amounts of nearly impossible to tackle using traditional medicines. data and puts the focus on individual patients, not their disease. Such a reality is well understood by Bayer AG. The German Through this and other adaptive technologies, Oelrich said multinational pharmaceutical and life sciences company recently in the Q&A session, Bayer and its collaborators were working held its Virtual Pharma Media Day, where it shared with media toward “making medicines just an accessory to the overall care of professionals around the world the exciting progress it has patients.” made over the past year. The event, which was translated into Finishing the discussion regarding Bayer’s recent progress were 11 different languages, showcased some of Bayer’s investments medical doctor So-Young Kim and Oliver Martin Fischer, principal in external innovation through an unprecedented number of scientist of the company’s Reproductive Health Research team, collaboration agreements and acquisitions – 25 in total in 2020. who both updated the audience about some of the medicines Bayer specialists also outlined some of the assets in its robust currently in Bayer’s mid-stage pharmaceuticals pipeline. Kim, development pipeline. who heads Bayer’s thrombosis and vascular diseases department, To kick off the event, Emile Nuwaysir, CEO and president of discussed the company’s new class of anti-coagulation medicines, BlueRock Therapeutics, and Sheila Mikhail, co-founder and CEO which involve Factor XI (FXI) inhibitors. Based on the company’s of Asklepios BioPharmaceutical (AskBio), introduced a few of research, these drugs could be a promising means of preventing the Bayer’s most recent strides in the area of cell and gene therapy. formation of blood clots and, in effect, of thrombosis. BlueRock, a wholly owned subsidiary of Bayer, is involved in the Fischer introduced Bayer’s P2X3 multi-indication program. development of stem cell treatments to restore lost motor function P2X3 antagonists have been identified for endometriosis, a in patients with Parkinson’s Disease, as well as other degenerative clinical condition affecting 10% of reproductive-age women conditions. AskBio’s AAV-based gene therapy, meanwhile, has that can cause severe chronic pain, as well as other conditions shown promise in treating a range of conditions, including associated with pain and neurogenic hypersensitivity that can Duchenne muscular dystrophy (DMD), and as a therapeutic for affect patients’ quality of life. Bayer’s advances in this area could late-stage heart failure. potentially offer such patients a new treatment approach and Fielding questions from the audience, Stefan Oelrich, a relief, allowing them to start getting back to their normal lives. member of the Bayer AG Board of Management and President of As the presentations and discussions that took place during its Pharmaceuticals Division, said that the company’s acquisitions the Virtual Pharma Media Day clearly indicated, Bayer is of BlueRock and AskBio was just part of its strategy to transform working collaboratively on a comprehensive set of breakthrough the pharma business. treatments. By making tangible progress in the areas of cell and “Our company is at the forefront of the wave of innovation gene therapy and digital health, as well as building and expanding in cell and gene therapy as well as digital health,” Oelrich said. on its impressive development portfolio, Bayer continues to show “We are driving this transformation and growing our promising its strong commitment to transforming patient health. development portfolio together with our partners.” Next to address Bayer’s evolving approach to digital healthcare was Jeff Dachis, founder and CEO of Informed Data Systems, Inc. (One Drop), with whom Bayer has joined forces to develop digital products across multiple therapeutic areas. Dachis related his personal experience being diagnosed with Diabetes Mellitus, saying that his treatment reflected the current medical system’s view of patients with chronic conditions as “discrete silos of medical interventions.” Dachis hopes to change that perception and transform the current care paradigm. He argues for a personalized approach

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 3

Bayer advertorial.indd 3 2021/2/1 3:26 PM CONTENTS

NEWS AND VIEWS 7 Editorial

FEBRUARY 2021 VOLUME 51, NUMBER 2 It’s Time to Drop the “Greater 一一○年二月號 China” Terminology 該讓「大中華區」一詞走入歷史

Publisher 發行人 8 Taiwan Briefs Leo Seewald 李豪 Senior Advisor 資深顧問 By Austin Babb and Jason Wu Don Shapiro 沙蕩 Senior Editor 資深編輯 14 Issues Jeremy Olivier 歐嘉仁 Art Director/ 美術主任/ 6 President’s View Defining Labor Relationships Production Coordinator 後製統籌定義勞動關係 Katia Chen 陳國梅 A Bullish Start to the Year of the Ox Cover Designer 封面設計 By Leo Seewald By Jeremy Olivier Grace Yang 楊慈安 Manager, Publications Sales & Marketing 廣告行銷經理 Caroline Lee 李佳紋 COVER SECTION Translation 翻譯 Kevin Chen, Yichun Chen, Andrew Wang 歡迎產業回台投資陳又銘, 陳宜君, 王先棠 Welcoming Industry Back Ashore

American Chamber of Commerce in Taiwan 16 Amid a Changing World 129 MinSheng East Road, Section 3, 7F, Suite 706, Taipei 10596, Taiwan Economy, Taiwanese P.O. Box 17-277, Taipei, 10419 Taiwan Tel: 2718-8226 Fax: 2718-8182 Manufacturers Return e-mail: [email protected] website: http://www.amcham.com.tw Home 名稱：台灣美國商會工商雜誌 Taiwan has capitalized on 發行所：台灣美國商會臺北市10596民生東路三段129號七樓706室 the U.S.-China trade dispute 電話：傳真： 2718-8226 2718-8182 and superb pandemic control 22 For Taiwan’s Chipmakers, Taiwan Business Topics is a publication of the American to revitalize its position as a Chamber of Commerce in Taiwan. Contents are Navigating U.S.-China independent of and do not necessarily reflect the views of the Officers, Board of Governors, Supervisors or members. technology hub. © Copyright 2021 by the American Chamber of Commerce Rivalry Requires Finesse in Taiwan. All rights reserved. Permission to reprint original By Matthew Fulco material must be requested in writing from AmCham. Reliance on China has never Production done in-house, Printing by Farn Mei Printing Co., Ltd. been riskier for Taiwan's

登記字號：台誌第一零九六九號印刷所：帆美印刷股份有限公司 semiconductor sector. Industry 經銷商：台灣英文雜誌社台北市108台北市萬華區長沙街二段66號 giants like TSMC are now 發行日期：中華民國一一○年二月中華郵政北台字第5000號執照登記為雜誌交寄 investing to increase production ISSN 1818-1961 capacity in the U.S. as means of threading the needle on the Chairperson: CW Chin Vice Chairpersons: Fupei Wang, Timothy Shields American tech dispute with Secretary: Daniel Tseng Treasurer: Angela Yu China. By Matthew Fulco 2020-2021 Governors: C.W. Chin, Brian Sung, Timothy Shields, Fupei Wang, Roger Yee, Angela Yu.

2021-2022 Governors: BACKGROUNDER TAIWAN BUSINESS Justin Chin, Cynthia Chyn, Paulus Mok, Terry Tsao, Daniel Tseng. 28 Taiwan Reaches Out to 2021 Supervisors: Max Chen, Shelley Chia, Seraphim Ma International Media and

COMMITTEES: NGOs Agro-Chemical/ Melody Wang; Asset Management/ Eric Lin, Angela Yang, Derek Yung; Banking/ Paulus A more hostile environment for Mok; Capital Markets/ Mandy Huang, Eric Jai, C.P. Liu; Chemical Manufacturers/ Charles Liang, Michael journalists and NGOs in China Wong; Cosmetics/ Abigail Lin; Defense/ Manohar and Hong Kong could make Thyagaraj, Roger Yee; Digital Economy/ Max Chen, Renee Chou, Tai Chi Chuan; Energy/ Richard Freer, Taiwan an ideal location to open Randy Tsai; Human Resources/ Christine Chen, Carmen Law, David Tsai; Infrastructure/ Wayne regional bureaus and offices. 47 Pandemic Affects a Chin, Paul Lee; Insurance/ KT Lim, Mandy Shih, Linda Tsou; Intellectual Property & Licensing/ Jason By Dinah Gardner Multitude of Industries in Chen, Peter Dernbach, Vincent Shih; Marketing & Distribution/ (tba); Medical Devices/ Louis Ko, Jeffrey Taiwan Wang; Pharmaceutical/ Justin Chin, Cellina Yeh, Shuhei Sekiguchi; Private Equity/ Echo Yeh; Public How have other, less well- Health/ Joyce Lee, Pongo Peng, Tim Shields; Retail/ Ceasar Chen, Mark Chen, Peggy Liao; Sustainable reported-on industries coped Development Goals/ Kenny Jeng, Lume Liao, with the changes brought on by Cosmas Lu, Fupei Wang; Tax/ Heidi Liu, Cheli Liaw; Technology/ Cynthia Chyn, Stella Lai, Angela Yu; this global pandemic? Insiders Telecommunications & Media/ Thomas Ee, David Shin, Joanne Tsai; Transportation & Logistics/ (tba); say that digital transformation Travel & Tourism/ Gina Tsai, Jason Yeh, Fiona Yuan. and flexibility are crucial. By James Chater

4 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 contents.indd 4 2021/2/1 2:36 PM FEBRUARY • VOLUME 51 NUMBER 2 COVER SPONSOR

SPECIAL REPORT

2021 A Technology for Social Impact Business Climate Survey

Report on Results

AmCham's online 2021 Business Climate Survey was conducted between November 12 and December 31, 2020. Of the 409 eligible respondents among the voting representatives of the Chamber's member companies (usually the country head), 200 took the survey for an impressive response rate of about 49%.

SPONSOR

Suite 706, Worldwide House 129 MinSheng East Road, Section 3, Taipei 10596, Taiwan Tel: +886-2-2718-8226 Fax: +886-2-2718-8182 www.amcham.com.tw

2021_BCS.indd 1 2021/1/30 3:18 PM 31 AmCham Taipei’s 2021 Business Climate Survey

EXECUTIVE SUITE 50 Meet Peter Cleveland of TSMC By Jeremy Olivier COMPANY ADVOCACY Microsoft is the worldwide leader in software, services, devices, and solutions that help people and business enterprises realize their full potential. At our core, Microsoft is the productivity and platform company for the mobile-first and cloud-first world. We reinvent productivity to empower every person and every organization on the planet to achieve more. 3 Bayer: Transforming Healthcare through Collaborations and Microsoft Taiwan Corporation was established in 1989, and in the Breakthrough Innovation more than two decades since then, we have demonstrated our firm SPONSORED CONTENT commitment to being a responsible local industry partner as well as perform our corporate social responsibility.

As a company, and for our employees as individuals, we value integrity, honesty, openness, personal excellence, constructive self- criticism, continual self-improvement, and mutual respect. We are committed to our customers and partners and have a passion for 12 SEMI Taiwan: Maintaining technology. We take on big challenges, and pride ourselves on Momentum for Taiwan seeing them through. We hold ourselves accountable to our cus- Semiconductors 26 InvesTaiwan is Working to Bring tomers, shareholders, partners, and employees by honoring our Industry Back Home commitments, providing results, and striving for the highest quality.

Technology is a powerful force for improving people's lives. But right now, half the world does not have access to the benefits and opportunities that technology offers. Microsoft Philanthropies are committed to doing more globally to bring the benefits of technology to the people and organizations who need them most. Together with our grantees, partners and employees around the world, we’re working to fulfill Microsoft’s mission to serving the public good

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 5 through innovative technologies and partnerships.

2 contents.indd 5 2021/1/31 11:12 PM PRESIDENT'S VIEW

A Bullish Start to the Year of the Ox

Dear Members and Friends, of President Tsai Ing-wen’s Six Core Innova- tive Industries initiative, which targets several This year’s Business Climate Survey results areas of consequence to Taiwan. Not surpris- indicated a record high level of optimism in ingly, high-tech, cybersecurity, and medical the Taiwan economy among our member com- technology were seen as the most impactful panies. Nearly 86% were confident about to Taiwan’s future economy, followed closely Taiwan’s economic growth in the next 12 by green and renewable energy. There is a rec- months – up from around 60% one year ognition that Taiwan needs to look beyond ago. Such an outlook may seem counterintu- semiconductors and develop a diverse portfolio itive given the impact of COVID-19 (80% of of high-value industries. our members reported their businesses being Survey respondents also expressed the negatively impacted to some extent by the pan- opinion that Taiwan needs to improve its reg- demic). However, it reflects the culmination of ulatory environment to facilitate its ambitious a number of years of robust economic growth plans – 36% of members still say that Taiwan’s and a boost in Taiwan’s global stature resulting rulemaking does not follow international best from its excellent handling of the pandemic. practices and that regulations do not demon- Many of the indicators, including the fact strate an understanding of industry dynamics that over 40% of our members plan to increase or meet economic needs. AmCham’s Taiwan their full-time equivalent employees this year White Paper will continue to highlight specific – up from 34% last year – would suggest that areas for improvement, but increased consul- Taiwan will continue to benefit from the shifts tation with industry throughout the legislative currently taking place in global supply chains. process would also go a long way to ensuring In many ways, the stars appear aligned for better results. Taiwan at this unique point in time. This is For our part, AmCham will continue to truly a “Golden Moment” for Taiwan, and I work with the Taiwan and U.S. governments feel strongly that if the island is able to capi- to help drive the implementation of the key talize on the many opportunities it has at this Taiwan government initiatives supported time, it will emerge stronger, more stable, and by our members. We all want to see Taiwan more prosperous. prosper! COVID-19 will eventually pass, but The drive to make Taiwan bilingual by it is our hope that Taiwan’s global reputation 2030 (94% of our members feel it will ben- as a great place to live, invest, and do business efit Taiwan’s economic development); its need will continue to grow. to enter into multilateral agreements (80% feel Taiwan’s exclusion from multilateral/bilateral trade agreements negatively impacts their businesses); and a smooth transition to green energy (65% are still concerned about the sufficiency of Taiwan’s power supply) are all issues that Taiwan must address to help it cap- Leo Seewald ture this Golden Moment. President, We also asked members about the impact American Chamber of Commerce in Taiwan

6 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 presidents view.indd 6 2021/1/31 11:12 PM E D I T O R I A L It’s Time to Drop the “Greater China” Terminology

s newly inaugurated President Joseph R. Biden Jr. took Turning that consensus into tangible benefits, though, will office last month, many questions remained about what require further efforts. Chen noted that for years, major multina- A direction U.S.-Taiwan relations would take under his tionals from the U.S. and elsewhere have viewed Taiwan solely leadership. While Biden and his Cabinet picks did espouse strong through the lens of their business in China. “Greater China,” support for Taiwan policy during his presidential campaign, most the designation long used by corporations to group China, Hong observers agree that the opening months of his presidency will Kong, and Taiwan into one overarching market as a way of mostly be focused on pressing domestic issues, such as the effects managing their Asia-Pacific activities, in effect minimized Taiwan’s of the COVID-19 pandemic and racial injustice. importance in the regional supply chain. It also diminished the Understandably, there is apprehension among some in corporate attention and resources that Taiwan deserves. Taiwan as to whether the efforts during the Trump administra- The Greater China grouping is sometimes also found in tion to strengthen the U.S. relationship with Taiwan are likely to government organizations. Inclusion of Taiwan in the same continue. Legislation such as the Taiwan Travel Act, TAIPEI Act, section as China and Mongolia at the Office of the U.S. Trade and Taiwan Assurance Act, as well as the State Department’s deci- Representative, for example, tends to result in less attention for sion to publicize the Six Assurances made by President Ronald Taiwan affairs. Chen argued that not only is there no such entity Reagan and its lifting of longstanding restrictions on official as “Greater China,” but also that continuing to use this concept communication, inarguably changed bilateral ties for the better. is misleading and impractical in light of current geopolitical and One thing that is certain, however, is that the prevailing view of economic developments. Taiwan in Washington has noticeably shifted. Support for Taiwan From an industry perspective, bringing Taiwan out of the has always been bipartisan, but there is now a renewed emphasis “Greater China” framework would give it more visibility and on the island’s significance to the U.S. and on the economic and sway in working toward the critical economic agreements from political values and democratic worldview the two partners share. which it has long been excluded, thereby enhancing its trade and Nowhere was this political attitude more evident than in the investment relationship with the U.S. In other words, treating State Department-led Economic Prosperity Partnership Dialogue Taiwan as a singular entity is good for business. (EPPD), conducted both virtually and in person in Washington, American policy toward Taiwan should be based on the merits D.C. last November. At an AmCham luncheon in January, Deputy and not merely be a subset of broader China policy – and the Minister of Economic Affairs C.C. Chen, who led the Taiwan language used to refer to Taiwan in an official or business context delegation to the EPPD, posited that establishment of the platform should accurately reflect that stance. As developments over the was as significant as a free trade agreement with the U.S. in that it past several years have given Taiwan new prominence in the U.S.’ represented a consensus among government, academia, and busi- Indo-Pacific strategy, the time has passed for Taiwan to be viewed nesses that Taiwan is an invaluable partner. as part of “Greater China.”

該讓「大中華區」一詞走入歷史

國新任總統拜登上月就任時，外界對他主政下的美台可貴夥伴的共識。關係走向仍存在許多疑問。拜登及其準內閣在選戰期但是要將前述共識轉化為實際利益，還需進一步努力。陳美間的確擁護大力支持台灣的政策，不過多數觀察家一正祺表示，多年來，美國和其他國家的大型跨國企業只透過中致認為，他上任後的頭幾個月將把主要焦點放在迫切的國內議國業務的視角來看待台灣。企業長期以「大中華區」一詞，將題上，例如2019年冠狀病毒疾病（COVID-19）大流行效應、種中、港、台統稱為單一總體市場，以此方式管理其亞太區業族不公等。務，實際上卻是將台灣在區域供應鏈中的重要性貶至最低。這可以理解的是，台灣部分人士擔心川普政府強化美國與台灣也導致台灣理應獲得的企業關注和資源變少。關係的努力是否可能延續下去。川普時期通過的台灣旅行法、台有時也可發現政府機構將大中華區視為單一群體。例如美國灣友邦國際保護及加強倡議法（簡稱台北法）和台灣保證法等立貿易代表署將台灣和中國、蒙古劃歸同一部門，往往導致台灣法，以及國務院決定公布雷根總統對台六項保證和取消長久以來事務獲得的關注度降低。陳正祺認為，「大中華區」之類的實對台灣的官方往來限制，無疑讓美台雙邊關係變得更好。體不但不存在，而且鑒於當前的地緣政治和經濟發展，繼續沿不過可以肯定的是，華府對台灣的主流觀點已出現顯而易見用此概念會造成誤導，同時也不切實際。的變化。民主與共和兩黨向來支持台灣，但現在的新重點在於從產業界角度來看，讓長久以來被排除在重要經濟協定之台灣對美國的重要性，以及美台兩個夥伴共同的經濟與政治價外的台灣跳脫「大中華區」框架，將使其在爭取加入這些協定值觀和民主世界觀。時，能獲得更多能見度和影響力，進而強化其與美國的貿易和最明顯展現此一政治態度的，就是美國國務院主導的台美經投資關係。換言之，將台灣視為單一實體，有利於商務。濟繁榮夥伴對話（EPPD）；該項會談去年十一月透過線上虛擬美國對台政策應以實際情況為依據，而非只當作廣泛中國政和面對面兩種形式在華府舉行。率領台灣代表團參加EPPD的經策中的一部分――用來指稱台灣的官方或商業用語應精確反映濟部次長陳正祺今年一月出席台灣美國商會主辦的一場午餐會此立場。隨著過去數年的情勢發展讓台灣在美國的印太戰略中報時指出，前述對話平台的建立和與美國達成自由貿易協定同獲得全新的重要地位，將台灣視為「大中華區」一部分的時代等重要，因為它代表美國政府、學界和企業之間已達成台灣是也已走入歷史。

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 7

2 Editorial.indd 7 2021/1/31 11:13 PM T A I W A N B R I E F S

— BY AUSTIN BABB AND JASON WU —

MACROECONOMICS ECONOMIC INDICATORS

SUSTAINED GROWTH US$ billion Year earlier EXPECTED IN 2021 Current Account Balance (Q3 2020) 28.7 12.5 While the combined effects of Foreign Trade Balance (Dec.) 5.8 2.5 COVID-19 and the U.S.-China trade New Export Orders (Dec.) 60.5 43.8 dispute caused many economies to Foreign Exchange Reserves (end Dec.) 529.9 478.1 contract in 2020, Taiwan boasted GDP growth of a projected 2.54%, 0.98 Unemployment (Nov.) 3.75% 3.73% percentage points higher than forecasts Discount Rate (Dec.) 1.125% 1.375% made earlier in the year. This growth Economic Growth Rate Q3 2020p 3.92% 3.33% can be attributed primarily to increased Annual Change in Industrial Output (Nov.)p 7.84% 1.98% global demand for products made by Annual Change in Industrial Output (Jan.-Nov.)p 6.54% Taiwan’s export-oriented tech sector. Annual Change in Consumer Price Index (Nov.) 0.09% 0.58% In terms of overall trade, Taiwan’s Annual Change in Consumer Price Index (Jan.-Nov.) -0.26%

exports rose 4.9% in 2020, while P=PRELIMINARY SOURCES: MOEA, DGBAS, CBC, BOFT imports grew by 0.3% from 2019. The Bureau of Foreign Trade reported a trade about by the pandemic, Taiwan’s exports tative to the U.S., was formally invited surplus of US$58.79 billion, a year- of machinery and electrical equipment to attend the inauguration of U.S. Presi- on-year increase of 35.14%. The two have increased. In 2019, machinery and dent Joseph R. Biden Jr. on January 20, main sources of that surplus were the electrical equipment exports accounted the first such invitation extended to a U.S. (US$38 billion) and China (US$17 for 59.6% of Taiwan’s total exports but Taiwanese diplomat in four decades. In billion). expanded to over 63% in 2020. previous years, envoys from Taiwan were The composition of Taiwan’s exports Export orders, a leading indica- granted entry to the event through admis- has also changed over the past year. With tor, also experienced record highs in sion tickets provided by U.S. legislators. the growth in the semiconductor, electric 2020. The Ministry of Economic Affairs Hsiao posted a video clip of herself vehicle (EV), and 5G industries bought (MOEA) reported a total of US$533.66 at the inauguration ceremony to social billion in export orders in 2020, a media, stating that she was honored to 10.1% increase from the year before attend the event on behalf of the govern- and the highest jump in three years. In ment of Taiwan. “Democracy is our December alone, export orders totaled common language and freedom is our US$60.55 billion, up 38.3% from the common objective,” she said regarding same month in 2019. Taiwan-U.S. relations. “I look forward Given Taiwan’s strong economic to working with the next administra- performance in 2020, many expect tion in advancing our mutual values and that the ongoing impact of COVID-19 interests.” on the world’s leading economies and continued demand for electronics and TSAI AND CRAFT semiconductors will result in sustained MEET VIRTUALLY growth this year. The Taiwan Institute President Tsai Ing-Wen and U.S. of Economic Research forecasts that Ambassador to the United Nations Kelly Taiwan’s economic growth rate will be Craft held a virtual meeting on January 4.3% in 2021. 14, during which they discussed topics such as Taiwan’s role as a force for good INTERNATIONAL and its place on the world stage. Craft had originally been scheduled to visit Hsiao Bi-khim was the first Taiwanese diplomat to receive a formal invitation HSIAO ATTENDS BIDEN Taiwan January 13-15, but the trip was to a U.S. presidential inauguration in INAUGURATION called off – and replaced by the virtual four decades. PHOTO: TECRO IN THE U.S. Hsiao Bi-khim, Taiwan’s represen- meeting – when the State Department

8 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 Briefs.indd 8 2021/1/31 11:14 PM T A I W A N B R I E F S

announced that it was canceling all cial contacts marks a new chapter interests.” He also stated that “there is a foreign diplomatic trips to concentrate in U.S.-Taiwan relations, yet some broad group of people across the polit- on the presidential transition. have questioned whether such a deci- ical aisle that understand the profound In a tweet following the meeting, sion really brings substantive benefits significance of Taiwan and our strategic Craft wrote that Taiwan is a model for to Taiwan or merely complicates the interest in maintaining a strong relation- the rest of the world, citing Taiwan’s recently inaugurated Biden administra- ship with Taiwan.” success in fighting COVID-19. She tion’s relationship with Beijing. noted that Taiwan is also making rapid DOMESTIC developments in the fields of health, CAMPBELL APPOINTED technology, and cutting-edge science, but BIDEN’S ‘ASIA CZAR’ NEW MEAT POLICY that due to China’s obstruction, it has President Biden has appointed Kurt TAKES EFFECT been unable to share its success stories Campbell, chairman and co-founder of Taiwan’s new policy lifting restric- and methodologies with the interna- The Asia Group consultancy, to newly tions on imports of ractopamine-fed tional community. Craft emphasized created position of Deputy Assistant to meat products from the U.S. came into that transparency, free sharing of infor- the President and Coordinator for Indo- effect on the first day of the new year. mation, and international cooperation Pacific Affairs at the National Security However, the Taiwan authorities esti- are critical to overcoming the hardships Council. Campbell, who has exten- mate that the first batch of such imports brought about by the global pandemic. sive experience in the public and private will likely not arrive until March or Craft also made headlines in Taiwan sectors, served as Assistant Secretary of April due to complications from the for posting a picture of herself carrying a State for East Asian and Pacific Affairs COVID-19 pandemic and continued Formosan black bear plush toy into the under President Barack Obama. domestic pushback. Minister of Health General Assembly Hall of the UN. Congratulating Campbell in a tweet, and Welfare Chen Shih-chung said Taiwan representative to the U.S. Hsiao consumers are unlikely to see any such DIPLOMATIC VISITS Bi-khim said he "is well known and products on supermarket shelves any HELD IN EUROPE highly respected around Asia. She added time soon. On January 9, former U.S. Secre- that "he has a strategic vision as well as In response to the central govern- tary of State Mike Pompeo announced practical experience," and that she looks ment’s new policy, several local that longstanding restrictions on inter- forward to working with him in the jurisdictions announced their own regu- actions between U.S. officials and their future. lations on imports of U.S. meat. Taipei Taiwanese counterparts would be lifted. Speaking remotely at an Indo-Pacific Mayor Ko Wen-je pushed an initiative The move was one of the last steps taken Security Dialogue held in Taipei last that would urge supermarkets to set up a to bolster the U.S.’ unofficial ties with December, Campbell encouraged Beijing “ractopamine-free” section in their meat Taiwan in the final days of the Trump and Taipei to enter into a degree of departments. Meanwhile, New Taipei presidency. “productive and quiet dialogue,” which Mayor Hou Yu-ih introduced a measure A few days after the announcement, he said “is in everyone’s best strategic requiring that certain retailers disclose U.S. Ambassador to the Netherlands Pete Hoekstra hosted Taiwan’s represen- TAIWAN'S JAN. - DEC. 2020 TRADE FIGURES tative to the country, Chen Hsing-hsing, (YEAR-ON-YEAR COMPARISON) at the U.S. embassy there. Then, on January 16, Taiwan’s representative to China/ apan ASEA TOTA Switzerland David Huang met with U.S. 151.5 132.1 285.7 286.5 Ambassador Edward McMullen at the 64.8 58.5 53.9 53.2 345.3 45.9 44.1 35.9 35 329.2

U.S. embassy in Bern. During the meet- 23.4 23.3 ing, Huang said he “extended Taiwan’s 2020 2019 2020 2019 2020 2019 appreciation to the U.S. for the support it has shown to Taiwan’s government .S.A Europe 50.6

and people.” McMullen later tweeted 46.2 36.8

36.5 34.9 32.6 29.8 that “the United States and Taiwan share 28.2 2020 2019 common values of freedom, rule of law, 2020 2019 2020 2019 T: S Billion and respect for human dignity.” Exports mports SO RCE: BOFT/MOEA The lifting of restrictions on offi-

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 9

2 Briefs.indd 9 2021/1/31 11:14 PM T A I W A N B R I E F S

country of origin on the products they sell, as well as whether those products contain ractopamine.

TAIWAN RECORDS LOCAL INFECTIONS Taiwan’s stellar record of 253 days with zero local COVID-19 infections came to an end after an EVA Air pilot from New Zealand tested positive in late December. According to the Central Epidemic Command Center (CECC), the pilot violated virus prevention rules and transmitted the virus to three other individuals. All contacts of the four cases were traced and tested, and the infection was contained. Taiwan is on higher alert after a pilot infected with COVID-19 transmitted the virus to four people and a cluster infection at a hospital in Taoyuan ended the

Also in December, Taiwan reported island's more than 250-day streak of zero local cases. PHOTO: MARTTI CHEN the first cases of a new, more transmis- sible COVID-19 variant from the UK, In order to contain the infection, the barred from running for the same posi- carried in by a returning Taiwanese CECC issued an order on January 24 tion for four years. student. By early January, Taiwan had requiring that all expanded contacts – The recall movement did not stop recorded a total of five infections with upwards of 5,000 people – quarantine at with Wang. Kaohsiung city councilor the new variant. In response, both EVA home for two weeks. So far, over 4,000 Huang Chieh and Taichung legisla- Air and China Airlines have suspended contacts in Taoyuan, New Taipei, Taipei, tor Chen Po-wei – both of whom were all direct passenger and cargo flights and Keelung are in quarantine. prominent critics of Han Kuo-yu and from the UK until February. supported his ousting – are the most While imported cases have steadily RECALL CAMPAIGNS recent targets of the campaign. While continued to increase, in mid-January GATHER STEAM the official procedure for Chen’s removal Taiwan experienced a new domestic clus- Democratic Progressive Party (DPP) is not yet in motion, the recall vote for ter infection that started with a case of legislators and city council members Huang is set for early February. Pro-Han a doctor at the Taoyuan General Hospi- across Taiwan are facing a series of and KMT supporters have also linked tal. A subsequent 19 cases and one death recall campaigns launched by the oppos- the controversy surrounding U.S. meat have all been linked to that cluster. ing Chinese Nationalist Party (KMT), imports to Huang and Chen’s removal. in what is seen as retaliation for the TAIWAN STOCK EXCHANGE removal from office of former Kaohsiung CROSS-STRAIT PERFORMANCE City mayor Han Kuo-yu in June last year.

THE LINE SHOWS CHANGES IN TRADE VALUE AND Former Taoyuan city councilor PLA RAMPS UP THE SHADED AREA CHANGES IN THE TAIEX INDEX. Wang Hao-yu was the first DPP politi- ADIZ BREACHES POINTS NT$ BILLION cian to be successfully removed. Wang The People’s Liberation Army (PLA) 15000 342 was an outspoken critic of Han, whom has recently been conducting an unusu- 14000 304 he frequently criticized on social media. ally high level of “gray zone” military 13000 266 12000 228 Wang became known for his controver- activities in the Taiwan Strait. Over 11000 190 sial social media posts – such as those the past year, Chinese reconnaissance 10000 152 he made regarding a KMT politician aircrafts and spy planes have frequently 9000 114 who committed suicide last June – which intruded into Taiwan’s air defense iden- 8000 76 prompted many from his constituency tification zone (ADIZ) as tensions 7000 38 to support his ousting. In January, Wang between China and the U.S. height- 6000 0 was officially removed by a vote of ened, and as further steps were taken to 84,582 (92%) in favor and 7,128 (8%) strengthen the unofficial U.S.-Taiwan

DATA SOURCE: TWSE against. Under Taiwanese law, Wang is relationship.

10 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 Briefs.indd 10 2021/1/31 11:14 PM T A I W A N B R I E F S

On the day of President Biden’s inau- ing firms did not impact total FDI from EV industry boom has increased demand guration, China dispatched a Shaanxi Y-8 China, which increased by an impressive for electronic components, an area tactical reconnaissance aircraft into the 30% last year. where Taiwan is quite strong. Around 30 southwestern corner of Taiwan’s ADIZ, The IC also approved 475 applica- Taiwanese companies, including Pega- prompting Taiwan to scramble its own tions by Taiwanese firms to invest in tron, Delta Electronics, and Fukuta fighter jets. It was only the latest of the China last year, down 22.1% from 2019. Electric and Machinery Co., have become series of provocative intrusions by the However, the commission reported that suppliers for Tesla. PLA into Taiwan’s military airspace. total investment in China rose 41.5% In addition, Hon Hai Precision According to reports from the Minis- in 2020, while total outward FDI by Industry Co. (Foxconn), Taiwan’s larg- try of National Defense, the PLA Taiwanese firms surged 72.3%. est contract manufacturer, has also breached Taiwan’s ADIZ on a daily basis made its entrance into the EV market. from January 2 to January 7 and from ECONOMIC DIVERSITY The company announced on Janu- January 11 to January 20. Deployed THROUGH NEW TECH ary 19 that more than 400 firms have aircraft included Y-8 anti-submarine In a recent interview with the Central joined its MIH Open Platform for EV planes, Y-8 electronic warfare planes, and News Agency (CNA), Minister of development. The platform is aimed Y-9 electronic warfare planes. Economic Affairs Wang Mei-hua noted at promoting collaboration in the EV Taiwan’s air force has responded by that in addition to Taiwan’s robust semi- industry to resolve potential bottle- dispatching alert sorties, issuing radio conductor industry, the rise of 5G and necks. Foxconn also recently announced warnings, and deploying air defense electric vehicles (EV) offer an opportu- a joint venture with local automaker missile systems. nity for the island’s economy to diversify. Yulon Group to manufacture EVs, part Taiwan’s exceptional handling of of its goal of gaining a 10% share of the BUSINESS COVID-19 and decent economic growth global EV market by 2027. in 2020, as well as its reputation as a In addition, Taiwan has several advan- TAIWAN FDI DROPS trusted, reliable supply chain partner, tages as a supplier in the global rollout DUE TO COVID make it an ideal location for expanding of 5G, especially considering the grow- The Investment Commission (IC) of production of components for these new ing demand for “clean networks” free the Ministry of Economic Affairs stated technologies. of Chinese-made equipment. Minister on January 20 that foreign direct invest- Taiwan is already a major supply Wang stated in the CNA interview that ment (FDI) in Taiwan fell to US$9.14 chain source for U.S. EV giant Tesla. 5G “will open up business opportunities billion in 2020, down 18.3% from the Taiwan offers the ability to provide small- for Taiwanese network communica- year before. A total of 3,418 FDI proj- volume, high-variety manufacturing to tions firms, manufacturers of servers and ects were approved by the government the company. In addition to Tesla, the terminal equipment, and telecoms.” in 2020, a decrease of 17% from 2019. However, the IC said that while total investment dropped last year, the figure constituted the sixth highest on record. According to the UN Conference on Trade and Development statistics, FDI decreased by 40% worldwide in 2020. The IC notes that the comparatively moderate decrease in Taiwan is due to the island’s successful response to the COVID-19 pandemic, which countless countries around the world are still strug- gling with. The commission considers this a vote of confidence by foreign investors in Taiwan. On a micro level, 90 Chinese firms were approved to invest in Taiwan in 2020, a 37% drop from 2019. However, Foxconn has made its entrance into the EV market, creating a platform for local this decrease in the number of invest- suppliers and collaborating with both local and international automakers. PHOTO: HON HAI PRECISION INDUSTRY CO.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 11

2 Briefs.indd 11 2021/1/31 11:14 PM ADVERTORIAL

SEMI Taiwan: Maintaining Momentum for Taiwan Semiconductors

semiconductor producers and their In addition, foreign firms such as fabless outsized role in the global tech supply chip designer Qualcomm and equipment chain. It also boosted revenues and manufacturer Applied Materials encouraged increased investment by can support and complete Taiwan’s hile 2020 was an extremely Taiwan’s semiconductor manufacturers. semiconductor industry ecosystem. challenging year for Taiwan’s microchip producers W individuals and companies Robust Industry also benefit from substantial policy throughout the world, one industry support. The Tsai administration has managed to experience substantial growth Tsao breaks down Taiwan’s prioritized the development of the island’s of an estimated 8.4% globally. That semiconductor-related strengths into semiconductor sector under its Six Core industry was semiconductors, producers several major categories. First is its Strategic Industries initiative, launched of the tiny chips that power virtually all position as a world leader in a number of last year. Tsao says that he has witnessed of the world’s electronic devices, handsets, sub-sectors. Taiwan’s foundry capacity is greater momentum and enthusiasm from tablets, and computers. unmatched, having experienced over 20% government leaders since the program was And nowhere was the production of growth in 2020. introduced. these silicon-based products as fruitful as Furthermore, Taiwan has been the top Lastly, he emphasizes that right now is it was in Taiwan, where semiconductor materials market for 10 consecutive years, a very critical time for countries around sector growth in 2020 came to an and its consumption of semiconductor the world to determine a roadmap for astounding 20.7%, raising the industry’s equipment reached US$17.1 billion in their technological development. He annual production value over NT$3 2019. Another area where Taiwan shines posits that the semiconductor industry’s trillion (US$107 billion). In fact, 2020 saw is advanced packaging and testing – importance to such plans is yet another of Taiwan become the world’s second-largest dominated by ASE, which enjoys a 21% its strengths. semiconductor production center, behind share of the global market – and it is host the U.S. to three of the top 10 IC design companies Global Headwinds Helping to facilitate this impressive in the world. growth and connect Taiwan’s electronics Secondly, over the decades Taiwan has Nevertheless, Taiwan will face some manufacturing and design suppliers to the developed one of the most comprehensive challenges to its position in the industry world marketplace is SEMI, an industry semiconductor ecosystems in the world. in the years ahead. Foremost among organization with a global reach. From leading IC design companies these is talent. While TSMC is one of the Terry Tsao, Global Chief Marketing like MediaTek to TSMC’s foundries, world’s most valuable companies, it faces Officer and President of Taiwan, SEMI, packaging giant ASE and all of the small- a shortage of quality talent at its home notes that the acceleration in the tech and medium-sized enterprises in between, base in Taiwan, and it is not alone in this rivalry between the U.S. and China that Taiwan’s industrial cluster is incredibly situation. began a few years ago was the initial spark functional and technologically advanced. SEMI Taiwan is therefore very involved that brought Taiwan’s chipmakers onto the global radar screen. COVID-19 has also created new opportunities for the semiconductor industry. The accelerated pace of global digitalization brought on by the pandemic has resulted in a surge of innovation in the areas of 5G, artificial intelligence, and high-performance computing, for which semiconductors play an important part. The increased demand for advanced manufacturing processes to produce the chips that power these technologies drew even more attention to Taiwan’s

12 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

SEMI advertorial.indd 12 2021/1/31 11:14 PM ADVERTORIAL

in workforce development through figure out ways to navigate these issues, rules-based global trading system that global initiatives such as its High Tech U especially considering their increased fosters fair competition and market access program for junior and senior high school visibility on the world stage. for all companies in the semiconductor students. Tsao and SEMI Taiwan also SEMI is engaged in various advocacy supply chain. support efforts, such as those undertaken efforts to strengthen the semiconductor SEMI Taiwan will continue to promote by the Talent Circulation Alliance, to industry supply chain, which relies on the the interests of Taiwan’s semiconductor make Taiwan a more competitive, capable, interconnectedness of global economies industry worldwide and underscore internationally oriented talent market. and the free flow of goods and data across its complementarity with other global Another major challenge facing borders. Its core trade principles include markets. It will also expand its role as a Taiwan’s semiconductor industry is the the protection of intellectual property bridge between Taiwan’s semiconductor ongoing geopolitical tensions that impact rights, the reduction and elimination manufacturers and other industries to operations and competition. Tsao says of tariffs, the harmonization of global produce innovative applications that can that big Taiwanese companies will need to technology standards, and a transparent, positively impact the world.

台產業入動

00 00 0 0000 迎 5 產業 000 0

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 13

SEMI advertorial.indd 13 2021/1/31 11:14 PM ISSUES Defining Labor Relationships

mCham’s Human Resources Committee last year raised an important issue regarding how the Ministry of Labor (MOL) A determines whether a given labor agreement constitutes an employment, mandate, or independent contractor relationship. The MOL makes this determination based on a 25-item checklist that includes such criteria as whether the business entity provides certain labor benefits; whether service providers can freely choose their working and rest hours; and whether they are obligated to register 灣美國商會人資會年有台定義勞動關係 attendance and accept assignments from the business entity, among 灣 other factors. 台任 The committee argued, however, that none of these criteria alone 一份25行 is necessarily indicative of a specific kind of work relationship. Furthermore, the designation of service providers as employees based 工有 on such standards has the potential to negatively affect certain busi- 工 ness models that have become very popular and profitable in Taiwan. 人資會為 One of these is online food delivery platforms, which grew 有 substantially in 2020 thanks to the COVID-19 pandemic and wari- 為工會台灣 ness about eating in restaurants. By July, the penetration rate of such 行有商生面 platforms among internet users in Taiwan reached 70%. The prolifer- 中一美台2019年 ation and popularity of these services has raised reasonable questions 19行 about how delivery personnel should be classified and what rights 台2020年長台台灣 and benefits they are thus entitled to. 路七月70 A recent survey of over 14,000 Taiwan-based delivery partners 廣理有 conducted by AmCham member company Uber Eats disclosed some 有 surprising results. The majority of respondents – between 60 and 65% 台灣美國商會會公司 – said that they devote less than 40 hours a week to Uber Eats deliv- 1萬名台灣行一 eries and do not rely on the platform as their main source of income. 人發6065 When asked whether the platform should be responsible for providing 工 labor insurance, many responded in the negative, the assumption 0份工為主 being that they already receive this benefit elsewhere. 問 In addition, nearly 60% said that if given the choice, they would 有 not consider taking on a formal full-time job, while 72% said such a job would be incompatible with their lifestyle. They prefer the flex- 60人會 ibility afforded by their part-time work with Uber Eats, and value 工有72 their ability to arrange their own work hours, reject orders, and be 工生 paid per task completed. All of these indicators align with the “inde- 工所行安工 pendent contractor” model as defined by the MOL. 任後 The results of Uber Eats’ survey clearly indicate that most of 所有所 its delivery partners consider the work that they perform for the company a supplementary source of income. Their main consideration in choosing such work is the income rather than non-salary 份工為工 benefits, and they prioritize flexibility over stability in their work 主資公 arrangements with the company. 司安工先 These results also support the suggestion made in AmCham’s 美國商會人資會 2020 Taiwan White Papers that the MOL consider the items included 2020年台灣中 in its labor contract checklist in their totality when determining what kind of work relationship exists between a business entity and a 中所有 worker. It should also recognize the value of independent and flex- 工 ible work arrangements under the digital economy and refrain from applying rigid labor classification or regulations to app-based work. 所限為經所 — By Jeremy Olivier 文歐嘉仁

14 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 issues.indd 14 2021/2/1 2:39 PM COVER STORY

TAIWANTAIWAN BUSINESS BUSINESS TOPIC TOPICSS • •FEBRUARY FEBRUARY 2021 2021 15 15

2 CoverStory.indd 15 2021/1/31 11:16 PM COVER STORY

RESHORING AMID A CHANGING WORLD ECONOMY, TAIWANESE MANUFACTURERS RETURN HOME

Taiwan has capitalized on the U.S.-China trade dispute and superb pandemic control to revitalize its position as a technology hub.

BY MATTHEW FULCO

n less than three years’ time, Taiwan has rejuvenated its position in global supply chains. The exodus of manu- Ifacturers to China is ancient history. Instead, many of them have been choosing to come home, first to circumvent stiff U.S. tariffs on China-made products, then to mitigate the fallout from the COVID-19 pandemic that began in Wuhan. Taiwan has contained the capri- cious pathogen better than almost any country in the world. The Tsai Ing-wen administration has incentivized manufacturers to repatri- ate from China with perks like prefer- InvesTaiwan CEO Emile Chang, left, says that a riskier investment environment ential loan terms, land concessions, and in China has spurred Taiwanese firms to diversify their production bases. tax breaks. Dubbed the “Action Plan for PHOTO: INVESTAIWAN

世界經濟遭逢變局，台灣製造業回流 0 文長 05 000 5 0 0 0

16 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 CoverStory.indd 16 2021/1/31 11:16 PM RESHORING

Welcoming Overseas Taiwanese Busi- facturing capacity had recovered to above ese firms to reshore is Quanta Computer, nesses to Return to Invest in Taiwan,” 70% for less than half of respondents. the assembler of MacBooks and Apple the policy covers financing, taxation, Of the firms surveyed, 44% said they Watches and a supplier of data center water, electricity, and manpower in a planned to diversify production, while servers to Facebook and Google. Quanta single service window. To qualify, compa- 60% said that tax credits might encour- is investing NT$15 billion to build a new nies must have invested in China for at age their repatriation. factory in Taoyuan that will take over least two years and been affected by the “It is important for Taiwanese compa- some of the company’s China production. trade dispute. They must also commit nies to diversify their production bases Amid escalating tensions between the to incorporating smart technologies into now that China’s business environ- U.S. and China on technology, telecom- their new or expanded production lines ment is riskier,” says Emile Chang, CEO munications equipment free of Chinese in Taiwan. of InvesTaiwan, an office under the components is a must for some U.S. Two other incentive programs exist MOEA that supervises the three incentive companies. for local manufacturers that have never programs. “They’re adapting to meet the Wistron NeWeb, a network and invested in China – one for large corpo- requirements of their U.S. and European communications solutions provider, said rations and another for small- and customers.” last June that it would invest NT$5.5 medium-sized enterprises (SMEs). “The Tsai government is doing a billion to build a third-phase plant in Together, the three programs have strong job of attracting capital back to the Southern Taiwan Science Park. The generated NT$1.18 trillion (US$42 Taiwan, a process known as ‘reshor- company invested NT$2.7 billion the billion) in investment from 783 compa- ing,’” says Rupert Hammond-Cham- previous year to set up production facili- nies since their launch in 2019, accord- bers, managing director at consultancy ties in the Tainan industrial park. Its top ing to data compiled by the Minis- BowerGroupAsia. He adds that the new clients include AT&T and HP. try of Economic Affairs (MOEA). More investments are boosting “prospects for “The pandemic’s effect on global work than two-thirds of that total (NT$792.5 R&D, production, employment, and reve- habits has had a huge [positive] impact on billion) is attributed to Taiwanese firms nue for local and national government.” Taiwanese companies that produce much returning from China. Among industries relocating to of the gear people use for remote work- A survey of 157 manufacturers by the Taiwan, high-end servers, networking,” says BowerGroupAsia’s Hammond- Taipei-based Chinese National Federation ing communications, and 5G-related Chambers, who also serves as president of of Industries (CNFI) published in October products are “leading the way in terms the U.S.-Taiwan Business Council. 2020 found that COVID-19 had caused of investment amount and production Demand for ICT components used many Taiwanese firms to reconsider their capacity expansion,” observes Stephen for remote work helped Taiwan's exports reliance on China. Some 80% of respon- Su, a vice president at the semi-govern- grow 4.9% to a record US$345 billion in dents (mostly SMEs) said the pandemic mental Industrial Technology and 2020, despite daunting global economic had hurt their bottom lines. When the Research Institute (ITRI). conditions. Taiwan’s export growth survey was conducted last summer, manu- One of the most prominent Taiwan- outstripped that of its fellow Asian tigers

5 50 55 A Taiwanese SME breaks ground on a new investment in Chiayi. PHOTO: INVESTAIWAN

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 17

2 CoverStory.indd 17 2021/1/31 11:16 PM COVER STORY

RESHORING

Singapore, South Korea, and Hong Kong. a hub for data centers in Northeast restrictions on cloud applications for Further, Taiwan was likely the only Asia, but the imposition of a draconian certain industries, such as finance. The Asian tiger economy to record posi- national security law last year raised government itself is also storing more tive growth last year. “Taiwan’s three troubling questions about data secu- data in the cloud. These trends “give yet economic engines of consumption, rity in the former British colony. Follow- another incentive for CSPs to establish exports, and investment all performed ing passage of the legislation, Google data centers in Taiwan,” he says. better than most of its neighbors,” says said it would end direct cooperation In September 2020, Google unveiled Darson Chiu, an economist at the Taiwan with the Hong Kong government on data plans for its third Taiwan data center on Institute of Economic Research (TIER), a requests. Google told Hong Kong police a 200,000-square-meter plot in Douliu think tank. “Consumption was not seri- that it would instead direct officials to in central Taiwan’s Yunlin County. The ously impacted by COVID-19, since the pursue data requests through a Mutual investment is reportedly worth NT$20 virus was contained domestically.” Legal Assistance Treaty with the U.S. billion. At a media briefing, Google’s “As geopolitical complications begin regional general manager Tina Lin cited Data center hub to intensify and cause extensive reper- Taiwan’s “geographic advantages” as cussions in Hong Kong, cloud-service a reason for building the data center While Taiwan has focused on reshor- providers (CSPs) are now investigating here. Multiple undersea communication ing manufacturing, U.S. tech giants such other suitable APAC locations for data cables connecting the U.S. and Asia pass as Microsoft and Google are also boost- center build-out outside of Hong Kong,” through Taiwan. ing investment on the island. Geopolitical says Mark Liu, a senior industry analyst That’s not all. The U.S. Justice Depart- disruptions beyond the U.S.-China trade at Taipei-based research firm TrendForce. ment opposed a plan involving Google dispute have affected their calculations. Liu notes that the Taiwanese govern- and Facebook that would have connected Hong Kong historically served as ment has in recent years gradually eased the U.S. to Hong Kong via underwater

00 50 資料中心樞紐 00 0 00

18 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 CoverStory.indd 18 2021/1/31 11:16 PM RESHORING

cable. The Justice Department warned chain and mentioned the possibility of The establishment of large data in a statement published by Politico that collaborating with the semiconductor, centers in Taiwan is not without its crit- the cable had “the potential to establish telecommunications, and medical sectors. ics. A common complaint among detrac- Hong Kong as the center of gravity for “This investment is important as it tors is that these facilities require a U.S. data connectivity in Asia, offering will help Taiwan build a holistic indus- substantial amount of energy to oper- unprecedented opportunities for collec- trial ecosystem around data centers, ate. Given that energy supply sufficiency tion by the Chinese intelligence services.” thereby triggering an industrial transfor- remains a major concern among busi- In contrast, the U.S. has supported the mation in Taiwan,” Pan says. nesses in Taiwan, whether to continue construction of undersea cables connect- At the same time, Microsoft’s huge providing space and resources for data ing the U.S. and Taiwan. “Taiwan is investment signals confidence in Taiwan centers is a consideration that weighs considered politically stable compared at a time of widespread economic uncer- heavily on both government officials and to Hong Kong and has a relatively large tainty. “Microsoft’s investment is key industry professionals. cost advantage compared to Singapore,” for us to enhance our collaboration with However, speaking at a recent says Pan Chien-kuang, a senior industry the international community and with AmCham Taiwan luncheon event, analyst at the Taipei-based Market Intel- the U.S.,” President Tsai said at the press Deputy Minister of Economic Affairs ligence & Consulting Institute. conference. Chen Chern-chyi (C.C. Chen) dispelled In another project, in October 2020 Microsoft announced it would build its first Azure data center in Taiwan as part of its largest investment yet there. Azure is a set of cloud services cover- ing computing, networking, databases, analytics, artificial intelligence, and the Internet of Things (IoT). The investment, which will also include expansion of the Azure hardware systems and infrastructure team, is expected to generate more than NT$300 billion in value and 30,000 jobs for the industry. “Building a world-class, enterprise- grade cloud marks an important step toward the digitalization of Taiwan’s key industries,” Ken Sun, general manager of Microsoft Taiwan, said in a press release. While space in Taiwan's science parks is limited, the government has been working At a press conference, he lauded Taiwan’s to secure land for investment by companies returning to the island. complete information technology supply PHOTO: HSINCHU SCIENCE PARK ADMINISTRATION

000 000 供應鏈的韌性

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 19

2 CoverStory.indd 19 2021/1/31 11:16 PM COVER STORY

RESHORING

those concerns, saying that the invest- is part of the process, but most companies pulling the plug on its Taiwan facto- ments in data centers made by compa- are not pulling out of China completely. ries. “As recently as five or six years ago, nies like Google, Microsoft, and Taipei-based JC Grand Corp. is a we used to wonder how long it would Amazon Web Services are crucial to case in point. The industrial fastener be until we shifted our whole supply helping Taiwanese companies complete and metal hardware maker has three chain from Taiwan to China,” says Jon their digital transformation processes. factories in Taiwan and one in China’s Hodowany, the company’s CEO and Furthermore, he said, the decision of Zhejiang Province. The third plant in general manager. these companies to invest in Taiwan is Taiwan is an empty facility, located Rising costs and regulatory travails in testament to its focus on cybersecurity, in an industrial park north of Kao- China began to change JC Grand’s calcu- protection of intellectual property, and hsiung, that the company purchased in lations. When the trade dispute broke adherence to the rule of law. the summer of 2020 and plans to equip out between Washington and Beijing, the with production lines. JC Grand will company decided to open a new factory Supply chain resilience probably apply for government incen- in Taiwan from which it could sell to the tives for capital purchases on some of U.S. market. “We had to do something With no end in sight for the U.S.-China the factory equipment. after our biggest market slapped 25% trade dispute, many firms are working Prior to the trade dispute, JC Grand tariffs on our products,” Hodowany says. to make their supply chains more resil- had no imminent plans to add capacity in He lauds Taiwan’s industrial clusters. ient. Moving production back to Taiwan Taiwan. If anything, the company mulled “The network effect of supply chains all being here generates huge efficiencies. Everything you need for metal fasteners is produced in Tainan and Kaohsiung.” After a rocky start, JC Grand ended up having a banner year in 2020, break- ing the US$100 million revenue milestone for the first time. The company has many customers in the construction industry and sells end products to Home Depot. “People were spending a lot of time at home because of the pandemic, and decided to invest in home improvement,” Hodowany says. Looking ahead, one challenge for Taiwan’s reshoring initiative will be the country’s finite resources. The so-called “five shortages” – land, water, electricity, manpower, and talent – remain an issue affecting companies’ investment decisions. Taiwanese firms that invest through InvesTaiwan's three major programs must ITRI’s Su believes that the government commit to incorporating smart technologies into their new or expanded production lines. can manage most of them in the short PHOTO: TECO

00 00 5 5 05

20 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 CoverStory.indd 20 2021/1/31 11:16 PM RESHORING

term, especially water and electricity, given the importance of attracting investment to Taiwan. "Potential shortage issues have been at the top of the agenda for the government,” he says. And while land is also a major concern for returning businesses, the government is working to address the overall growing demand for adequate space to build factories and plants. Minister of Economic Affairs Wang Mei-hua announced on January 20 that her ministry would coor- dinate with the state-run Taiwan Sugar Corp. to offer five pieces of land – a total of 423 hectares – for investment purposes. Wang noted that use of the land, located in Yunlin, Chiayi, Tainan, Meanwhile, Taiwanese firms with “China will remain a key production and Kaohsiung, could result in NT$1.8 a significant China footprint remain base for many Taiwanese companies due billion in production value and lead to the committed to that market. Despite the to its well-developed supply chains and creation of 10,000 jobs. trade dispute and pandemic, China infrastructure efficiency,” says ITRI’s Su, In the long run, talent could be the (counting Hong Kong) still accounts for adding that “it has also evolved into one trickiest to tackle. There is no easy fix. about 40% of Taiwan’s exports. of the world’s biggest consumer markets.” The birth rate in Taiwan is so low (1.22 Hon Hai Precision Industry Co. Hammond-Chambers expects Taiwan- children per woman) that the population (Foxconn), the world’s largest contract ese manufacturers will bifurcate their shrank last year for the first time. Taiwan electronics manufacturer, broke ground supply chains, with one focused on the will be a super-aged society by 2025, on a new advanced semiconductor pack- China market and customers willing to with one in five people aged 65 or older. aging and testing plant in Qingdao in buy products made there and a second Demographic decline will diminish the northern China’s Shandong Province dedicated to the rest of the world. country’s base of young science and tech- last year. The New Taipei City-based While that approach will be cost- nology talent, Su says. company will reportedly invest the equiv- lier for companies and consumers, “the “The declining birth rate is a national alent of US$8.6 billion in the facility. geopolitics of supply chains are unignor- security challenge for the government Foxconn also recently entered a stra- able,” he adds. that will require myriad approaches,” tegic partnership with the PRC's China Overall, though, revitalization of the says BowerGroupAsia’s Hammond- Insurance Investment Co. that will focus domestic manufacturing sector will pay Chambers. One he recommends consider- on emerging technologies such as elec- dividends. “The trend of reshoring manu- ing is an immigration point system, simi- tric cars, digital health, and robotics. The facturing bases will make Taiwan’s indus- lar to those used in Australia and the UK, two companies will set up a ¥10 billion trial supply chains more independent and which selects skilled migrant workers for venture capital fund that they expect will more resilient to external shocks in the economic purposes. ultimately double in size. future,” says TIER’s Chiu.

05 0000 55 0

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 21

2 CoverStory.indd 21 2021/1/31 11:16 PM COVER STORY

RESHORING

FOR TAIWAN’S CHIPMAKERS, NAVIGATING U.S.-CHINA RIVALRY REQUIRES FINESSE

Reliance on China has never been riskier for Taiwan's semiconductor sector. Industry giants like TSMC are now investing to increase production capacity in the U.S. as means of threading the needle on the American tech dispute with China.

BY MATTHEW FULCO

hina has long exerted a gravi- As it turns out, heavy reliance on The ban imposed in August 2020 tational pull on Taiwan’s semi- China is a riskier wager than many had could deal a lethal blow to Huawei. It conductor industry. The China imagined. The intensifying U.S.-China bars the company from using any U.S. Cmarket’s size, proximity, and torrid geopolitical rivalry is impelling Taiwan’s semiconductor technology, even the growth have prompted Taiwanese chip- chipmakers to build costly new supply machines used to manufacture chips. makers to invest heavily there. Some chains. U.S. sanctions on Huawei, the The latest restriction “is a worry- firms, like integrated circuit (IC) designer Chinese telecoms giant Washington sees ing development for Taiwanese chipmak- MediaTek, have put most of their eggs as a national security threat, are depriv- ers, who are highly exposed to Huawei’s in the China basket. Others like Taiwan ing Taiwanese semiconductor firms of a supply chain,” says Shen Tso-hao, an Semiconductor Manufacturing Co. lucrative revenue source. Before the sanc- industry analyst at the semi-governmen- (TSMC), the world’s largest contract tions went into effect, those companies tal Market Intelligence & Consulting chipmaker, have maintained a balance supplied chips for Huawei’s large base Institute (MIC). between Chinese and other customers. station and smartphone businesses. In fact, their exposure rose after the

因應美中較量，台灣晶圓廠步步為營文長 00

22 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 CoverStory.indd 22 2021/1/31 11:16 PM RESHORING

U.S.’ initial Huawei ban – which applied The U.S. in January blacklisted “more digital business opportunities will only to U.S. companies – as Huawei Xiaomi along with a number of Chinese be developed in the China market.” switched from American to Taiwanese firms for alleged links to the Chinese suppliers. Once the U.S. forbade Huawei military. The new ban requires U.S. inves- Follow your customers from using any U.S. IC technology, the tors to divest their holdings of the black- Taiwanese could no longer supply the listed firms by November 11, 2021. Prior to the U.S.-China technology Chinese firm as they use American equip- MediaTek and other Xiaomi suppliers dispute, Huawei was a major TSMC ment in the design and production of are unaffected for now as the ban covers client. The Hsinchu-based company their semiconductors. only investment. manufactured chips for HiSilicon, “At this point, it is crucial for Taiwan- In January, MediaTek unveiled its Huawei’s IC design arm, used in Huawei ese manufacturers to swiftly develop a latest premium 5G processors. Xiaomi smartphones, 5G network base stations, strategy to mitigate the impact of losing and Realme will be the first smartphone and servers. Like MediaTek, TSMC Huawei’s orders,” Shen says. vendors to use the chipsets. Xiaomi plans reportedly has applied to the U.S. govern- For MediaTek, the strategy appears to equip its first flagship gaming smart- ment for permission to continue supply- to be doubling down on China. On the phone with the new processor and release ing Huawei. one hand, MediaTek is lobbying the U.S. the phone later this year. Oppo and Vivo At the same time, TSMC has moved government for permission to keep sell- also plan to deepen cooperation with to build new manufacturing facilities ing to Huawei. It is unclear whether MediaTek. for its U.S. customers. The most notable those efforts will bear fruit. In mid-Janu- RichWave, a Taiwanese radio of these is a US$12 billion fab in Phoe- ary, the outgoing Trump administration frequency IC designer, previously shipped reportedly notified Huawei suppliers that Wi-Fi radio frequency front-end modules it would revoke certain licenses to sell to Huawei. The company’s Wi-Fi 5 to the Chinese firm and reject dozens of chip contains U.S. technology and thus other export license requests. falls within the scope of the U.S. ban. At the same time, MediaTek has been However, RichWave claims that its Wi-Fi selling more chipsets to Huawei’s rivals 6 product uses no American technol- like Xiaomi, Oppo, Vivo, and Realme. ogy content, the MIC’s Shen notes. Thus, In the third quarter of 2020, MediaTek RichWave is one of the few Taiwanese became the world’s largest smartphone manufacturers that claims it can continue chipset vendor with a 31% market share, supplying Huawei. buoyed by smartphone sales in China Despite the ongoing trade and tech – the world’s biggest 5G smartphone rivalry between China and the U.S., market – and India, according to Coun- “China still represents a major and grow- terpoint Research. The share of Media- ing market,” says Stephen Su, a vice pres- Tek chipsets in Xiaomi smartphones rose ident at the Industrial Technology and more than threefold year-on-year. Research Institute (ITRI). In the future,

5 0 5 5 00

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 23

2 CoverStory.indd 23 2021/1/31 11:16 PM COVER STORY

RESHORING

nix, Arizona, the largest foreign invest- tem,” TSMC said in a press release. Given the higher cost of manufac- ment by a Taiwanese firm in eight years. The investment came about in turing in the U.S. compared to Taiwan, Starting in 2024, the facility will mass- response to the Trump administration’s TSMC has requested subsidies from the produce chips made using TSMC’s efforts to reshore high-end manufactur- U.S. authorities. In November 2020, the advanced 5-nanometer process. It is ing for national-security reasons, the city of Phoenix agreed to provide roughly expected to create 1,900 full-time jobs Investment Commission of the Minis- US$200 million for infrastructure devel- over a five-year period. try of Economic Affairs (MOEA) said in opment in the plant’s vicinity. “This project is of critical, strate- December. TSMC might also be eligible for gic importance to a vibrant and compet- “The real security risk that arises federal subsidies. In June 2020, a biparti- itive U.S. semiconductor ecosystem that when sourcing chips from Taiwan is the san group of American lawmakers intro- enables leading U.S. companies to fabri- possibility – albeit not high in the short duced a bill that could provide roughly cate their cutting-edge semiconductor term – of a blockade or hostilities that US$23 billion in aid for chipmakers. The products within the United States and disrupts air and sea transport,” says Ross legislation would authorize the Defense benefit from the proximity of a world- Darrell Feingold, a Taipei-based lawyer Department to use funding under the class semiconductor foundry and ecosys- and political risk analyst. Defense Production Act to beef up the U.S.’s domestic chipmaking capability. Both Taiwan and the U.S. will benefit from the Arizona fab, says Rupert Hammond-Chambers, managing director of BowerGroupAsia. For Taiwan, he says, “it is a strategic move designed to more closely bind the two economies together around the technology commu- nities’ most important sub-sector” and a commercial move giving TSMC closer proximity to U.S. customers. Research firm Sanford C. Bern- stein & Co. estimates that the Arizona fab will produce about 20,000 wafers a month when it launches, less than 2% of TSMC’s production capacity at that time. TSMC’s largest customer, Apple, requires three to five times that number of chips on a monthly basis, Common- The TSMC facility in Hsinchu. The company’s planned US$12 billion fab in Arizona Wealth Magazine notes. Thus, TSMC could have applications beyond manufacturing chips for purely commercial uses. PHOTO: COMMONWEALTH might use the Arizona factory to manu-

跟隨客戶腳步 5 00 00 0 0 05 500

24 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 CoverStory.indd 24 2021/1/31 11:16 PM RESHORING

facture chips with sensitive military ny’s ecosystem. TSMC spent 97% of its US$3 billion fab in Nanjing will serve it applications that the U.S. wants to have capital expenditure in Taiwan over the well for the new U.S. expansion, Su says. made domestically. past five years and will do the same in the However, cultural differences between the The Arizona factory will also help next three, according to the MOEA. U.S. and Taiwan “will be a challenge to the U.S. “get back into growing and “The relatively small size of this fab be conquered.” nurturing high-end chip manufacturing,” makes it hard to say it’s a technologi- For other Taiwanese IC makers, Hammond-Chambers says. He expects cal or manufacturing win for the U.S.,” setting up factories in the U.S. may not semiconductor clusters to develop in the says Feingold. Nevertheless, if the facil- be an optimal choice, says Wen Liu, an Grand Canyon state – already home to a ity spurs industry expansion in Arizona industry analyst at MIC. “Only manufac- TSMC design center and where Intel has or other states, “it can be a true win for turers with advanced process technolo- a presence – as well as Samsung’s hub of the U.S.” gies are able to obtain substantial subsi- Austin, Texas. Wider expansion in the U.S. would dies from the U.S. government,” Liu The South Korean electronics giant, require TSMC to “establish a critical mass says. Without the subsidies to offset the which is the world’s largest memory- of engineering talent to be effective in considerable costs of establishing a U.S. chip maker, may invest US$10 billion to terms of quality and cost,” says ITRI’s Su. fab, “the idea is not so attractive.” build a plant in Texas that would produce TSMC will also need its supply chain However, Taiwanese firms could advanced 3-nanometer logic chips, partners to set up shop nearby. Three of consider the alternative of kickstarting according to Bloomberg. The plant would them – chemical supplier Chang Chun U.S. manufacturing operations through allow Samsung to better compete against Petrochemical Co., manufacturing facil- mergers, acquisitions, or joint ventures. TSMC in the area of high-margin chips ity builder United Integrated Services Co., Such a strategy can boost production used in smartphones and computers. and engineering firm Mirle Automation capacity in a short period without the Ironically, the amount of attention Corp. – recently announced that they will need for huge investment and is thus that TSMC’s Arizona fab has attracted is follow TSMC to Arizona. attractive to firms that lack TSMC’s outsized relative to its role in the compa- TSMC’s experience building a massive clout, Liu says.

5 0 00 5

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 25

2 CoverStory.indd 25 2021/1/31 11:16 PM ADVERTORIAL InvesTaiwan is Working to Bring Taiwan’s Industry Back Home

he U.S.-China trade dispute has brought significant changes in T markets and industries around the world, and at first it appeared that Taiwan would suffer a severe negative effect. In the early months of the dispute, the imposition of heavy tariffs and other trade barriers began impacting Taiwanese companies whose manufacturing processes take place mainly in China. These enterprises began reconsidering the extent of their China operations and looking to neighboring markets as alternatives. Seeing the enormous potential in this situation, InvesTaiwan, an inter-ministerial organization overseen by the Ministry of Economic Affairs, began devising a strategy to draw many of the affected companies back to Taiwan to help spark growth in the domestic economy. Emile Chang. Depending on industry of network communication equipment, “The U.S.-China trade dispute has characteristics and market demand, many servers, and other PC-related products. forced these businesses to diversify their companies have made investing in Taiwan Companies from this sector include places of production across multiple a priority, Chang adds. Supermicro, an AI technology firm that countries, thereby minimizing investment In 2019, InvesTaiwan launched the has been approved to invest NT$20 billion risks and turning a crisis into a favorable three-year “Action Plan for Welcoming (US$667 million). In addition, Quanta situation,” says InvesTaiwan CEO Overseas Taiwanese Businesses to Return Computer has invested NT$13.1 billion to Invest in Taiwan,” as well as the (US$467 million), establishing a facility to “Action Plan for Accelerated Investment produce servers opposite its headquarters by Domestic Corporations” and the in Taoyuan. “Action Plan for Accelerated Investment Other industries utilizing the three by SMEs.” These programs offer critical investment schemes include metals and assistance and favorable conditions to machinery, which accounts for 23% of the returning companies, such as fast-track total, as well as renewable energy, biotech, access to financial aid, preferential rental and defense. rates on land, better access to utilities, As Taiwan has managed to effectively exclusive tax services, and help with contain the COVID-19 pandemic at home, manpower. the review of investment applications and The “Three Major Programs for provision of services to manufacturers Investing in Taiwan” have proven to be a have continued unabated, with smashing success. To date, InvesTaiwan certain processes now taking place via has managed to attract a total of nearly videoconferencing and phone calls. NT$1.18 trillion (US$42.1 billion) “In addition to converting our in investment approvals from 777 preliminary review of applications to a companies. The effort is also resulting in written format and thereby expediting the creation of over 98,000 jobs. the application process, we also provide Of the total amount that has been guidance to businesses on how to use invested since the programs began, videoconferencing tools to attend joint a majority 58% has come from the review meetings,” says CEO Chang. electronics and information technology “Helping manufacturers pull through the sector, engaged mainly in the production pandemic and maintaining stability are

26 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

invest taiwan advertorial.indd 26 2021/1/31 11:17 PM ADVERTORIAL

our biggest priorities.” InvesTaiwan are thinking big picture Last but not least, Chang and his COVID-19 has also presented about future prospects. team hope to help make Taiwan an ideal opportunities for further investment by “The development of the Internet investment location for foreign companies Taiwanese manufacturers in Taiwan, of Things and smart manufacturing is looking to restructure their supply Chang says. Among the contributing expected to accelerate,” Chang notes. chains. Taiwan’s friendly environment factors are increased demand for tech “Taiwan not only has great development for multinationals, comprehensive tech products resulting from the stay-at-home potential in these two areas, but manufacturing ecosystem, high-quality economy, the need for cloud computing- through cross-industry alliances and labor force, sound legal environment, related jobs, and the large number of orders cooperation, it can promote smart and good infrastructure are just some of for semiconductors to power the devices technologies in traditional industries, the attractive qualities that businesses and technologies used in this new era. enhance the manufacturing sector’s value- expanding investment in Taiwan As the pandemic and geopolitical added capabilities, and create further or partnering with local Taiwanese situations continue to evolve, Chang and employment opportunities.” companies can enjoy.

灣

00 0 0 00000 5

經濟部廣告 2021.2 ( AD by MOEA 2021.2 )

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 27

invest taiwan advertorial.indd 27 2021/1/31 11:17 PM BACKGROUNDER

Taiwan Reaches Out to International Media and NGOs

A more hostile environment for journalists and NGOs in China and Hong Kong could make Taiwan an ideal location to open regional bureaus and offices.

BY DINAH GARDNER

aiwan is arguably one of the organizations – The New York Times, runs projects on China and Hong Kong. world’s most misunderstood The Wall Street Journal, and The The decision to open the office in places. Even major media corpo- Washington Post. In addition, in Sep- Taiwan was “a no brainer,” says Bureau rationsT often get it wrong. For example, tember two Australian reporters fled Head Cédric Alviani. “In the context of last December U.S.-based ABC News police harassment in China, leaving no an Asia that is mostly run by authori- mistakenly referred to Tsai Ing-wen as Australian media with foreign corre- tarian powers, Taiwan is one of the very the president of Thailand. spondents there. few democracies that can host interna- This vibrant democracy of 23 mil- In both mainland China and Hong tional NGOs or international media.” lion people is often either ignored by Kong, the authorities have either Alviani says that Taiwan over the the world’s press or reported simply in rejected or delayed approving journalist years has become much more interna- the context of cross-Strait relations. visas, while the NSL’s sweeping provi- tionalized, making it more competitive Things might be changing, however. sions that in principle make criticism with Hong Kong. He adds that its com- In the past few years Taiwan has made of the government a national security paratively low costs in terms of human headline news for some significant crime endanger those working in media, resources and office rental also makes achievements. Defining moments such think tanks, and NGOs. The risk is Taiwan more attractive than either of as becoming the first country in Asia to especially high for such professionals the other developed East Asian econo- legalize same-sex marriage in 2019 and working for overseas organizations. mies, Japan and Korea. controlling the COVID-19 pandemic The German think tank Friedrich His views are echoed by Taipei-based without having to resort to a lockdown Naumann Foundation for Freedom senior fellow with the Global Taiwan are increasingly putting the country on (FNF) opened a Global Innovation Hub Institute (GTI) in Washington, D.C., J. the map. in Hong Kong in 2019, but after just Michael Cole. “Taiwan is a free, safe The real game changer, though, one year it shuttered the new office and environment, with open access, a free could come from outside Taiwan’s bor- will instead relaunch it in Taipei this press, great infrastructure, enviable ders. Growing hostility in China against spring. Anna Marti, head of the Inno- quality of life, and healthcare, and it’s overseas journalists and the passing of a vation Hub, says FNF concluded that located at the very center of the Indo- draconian National Security Law (NSL) since the NSL targets international Pacific region,” he says. “Media, think in Hong Kong last year are offering political organizations and carries tanks, and NGOs that conduct work an unprecedented opportunity for the severe penalties, maintaining the office on ‘sensitive’ issues like human rights, island to attract foreign correspondents in Hong Kong was not worth the risk democracy promotion, press freedom, and organizations to move here instead. to the staff. and other matters can do so in Taiwan This is good news, but questions remain Reporters without Borders (RSF) with the knowledge that they will not be over whether Taipei is doing enough to saw the writing on the wall well ahead harassed, followed, or spied upon by the reap the potential rewards. of the NSL. The French NGO opened authorities or sub-state organizations In March 2020, Beijing expelled for- its East Asian Bureau in Taipei in 2017. affiliated with the regime.” eign media from three major U.S. news Today, it employs a staff of nine and There’s another advantage too. Tai-

28 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

Media.indd 28 2021/1/31 11:18 PM BACKGROUNDER

wan’s recent history, evolving from an “renegade” province of China. authoritarian state to a liberal democ- “Taiwan, in its vulnerable posi- racy while living under the shadow of tion, relies on the understanding and threats of coercion or invasion, makes it support of people around the world, a good subject for human rights organi- especially in advanced economies and zations to learn from. democracies,” says Sullivan. “It is thus The Prague-based European Values important that people reading about Center for Security Policy will decide Taiwan get an accurate sense of what whether to open an office in Taipei Taiwan is about and why it’s fighting to early this year, according to the cen- maintain its autonomy and way of life.” ter’s director, Jakub Janda. “We believe Raising Taiwan’s profile inter- that European democracies can learn nationally can also be expected to a lot from the experience of Taiwan encourage more people to come here defending itself from Chinese pres- for work, business, and pleasure once sure, which Europe is now facing as the pandemic is over. “It increases Tai- well,” Janda says. He adds that given wan’s visibility, positions it as a player the current situation, “many European regionally, and will normalize its exis- The recent influx of foreign reporters countries and institutions understand in Taiwan has helped change outdated tence as an actual, physical location, that they need more stable, friendly, terminology used to refer to the island in inhabited by real people, which can and trustworthy partners in Asia.” international media, says Jonathan Sul- be visited for conferences, business, or livan of Nottingham University. Taiwan, he says, fits that bill perfectly. PHOTO: JONATHAN SULLIVAN tourism,” says Cole. According to Marti of FNF, Taiwan’s Sarah Cook, Research Director for Digital Minister Audrey Tang’s bold uary 2021 nine reporters relocated to China, Hong Kong, and Taiwan at initiatives in e-governance, account- Taiwan from China. Freedom House, the U.S.-based pro- ability, and transparency were another democracy NGO, also sees big potential reason that Taipei was first choice for More foreign reporters for Taiwan. “If journalists who cover the Global Innovation Hub’s reloca- more of the economics and financial tion. “We think we can learn a lot from Some of the media organizations sector transfer there and become more them,” she says, referring to the hub’s that have relocated staff to Taiwan familiar with Taiwan’s economy, this goal of fostering digital experiments to include The New York Times, The Wall could also potentially result in more support open society and democracy. Street Journal, and The Washington frequent coverage that could draw Taiwan’s Department of NGO Post. UK broadsheet The Guardian also investors,” she says. International Affairs (NIA) under the assigned correspondent Helen Davidson Cook also cites employment oppor- Ministry of Foreign Affairs (MOFA) to Taipei late last year. tunities for aspiring young local says that in 2020 the Ministry of the In theory, having more foreign journalists and other economic benefits Interior (MOI) authorized the regis- reporters with boots on the ground from the establishment of more interna- tration of six international NGOs, should help Taiwan get more and better tional media organizations in Taiwan, and between March 2020 and Jan- coverage from the world’s media. “A as well as an opportunity to improve dateline, for one, puts Taiwan on the global map,” says GTI’s Cole. “More refined, detailed, granular, and sustained reporting about Taiwan from Taiwan will help tell its story – and show its importance – to the international community.” According to Jonathan Sullivan, director of China Programs at the UK’s Nottingham University, the difference is already evident. “One of the major opinions was that Taiwan needed people to be based in Taiwan to understand the nuance of the situation there and to reconsider how to frame cross-Strait relations,” he says. “Since the influx of journalists in the last few years, you can The Global Taiwan Institute’s J. Michael see the coverage gradually changing.” Helen Davidson of UK broadsheet The Guardian Cole extols Taiwan’s great environment He cites decreased use of terminology is one of the latest foreign for international media and NGOs. media transplants in Taiwan. PHOTO: J. MICHAEL COLE describing Taiwan as a breakaway or PHOTO: HELEN DAVIDSON

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 29

Media.indd 29 2021/1/31 11:18 PM BACKGROUNDER

journalistic professionalism and the overall media environment. Nevertheless, observers say that Taiwan needs to make some changes in order to fully proﬁt from this opportunity. “The government is in the process of modernizing and streamlining regulations that have made it difficult for international NGOs to set up shop in Taiwan,” says Cole. “It’s slow going, but it’s happening.” If these efforts can be institutionalized, which he believes is beginning to happen, it “will have a beneficial effect on the willingness of foreign organizations to consider Taiwan as an alternative,” he says. asks, “who is going to connect to that sitive. Indeed, all reporters and media Wu Fen-man, senior executive website if you don’t know that Taiwan outlets contacted for this story declined officer of the NIA’s International Par- is a good place?” He urges the govern- requests to answer questions on the ticipation and Evaluation Section, says ment to dispatch “credible people” to relocation of staff to Taipei. that MOFA and MOI have started go out and sell Taiwan to think tanks While the intimidation and harass- working together to make it easier for and other organizations. ment of foreign journalists common in international NGOs to establish oper- Wu counters that the NIA has China is unheard of in today’s Taiwan, ations in Taiwan. In addition, revised already begun that task. “Besides there are still some areas that the gov- regulations lowered the threshold for receiving requests from INGOs which ernment could improve, says William registration for any organization that have already shown their willingness to Yang, vice president of the Taiwan For- works on “democracy and freedom,” set up branches here, we aim at reaching eign Correspondents Club (TFCC). “human rights and justice,” and “peace out to more potential organizations – “We believe that government depart- and tolerance,” by halving the min- especially those which are striving to ments or agencies could be more open imum required assets to NT$15 million defend democracy, liberty, and human to interacting with the foreign press from NT$30 million. Yet for some, rights – and providing them with incen- community, allowing more on-the- such moves still fall short of the mark. tives,” she says. “Our goal is to develop record briefings to be available so Last summer, The New York Times a friendly and sustainable environment demand and appetite for stories about announced that it was relocating its in Asia that nurtures the long-term set- Taiwan could increase,” Yang says. He Asia digital news operation from Hong tlement of INGOs with shared values.” says that currently such briefings and Kong to Seoul, moving about one-third MOFA has also been reaching out to interviews are not always easy for for- of the staff because of security concerns expelled U.S. journalists. In a tweet last eign journalists to arrange. relating to the NSL. The fact that they March, Foreign Minister Joseph Wu Taiwan must also get serious about chose Korea over Taiwan should have wrote: “As @nytimes, @WSJ & @wash- improving English-language capacity, been a warning call, argues a Taipei- ingtonpost face intensifying hostility in say commentators. “One thing that based media professional from Europe China, I’d like to welcome you to be might make it difficult for media in who wished to remain anonymous. stationed in Taiwan – a country that is general is the fact that English is not as “In my analysis, less than 10% of a beacon of freedom & democracy.” widely spoken as it is in Hong Kong,” the NGOs and media that could settle Gerry Shih, the interim Beijing said Marti of FNF. While Taiwan’s in Taiwan [are doing so],” he said. bureau chief for The Washington Post, 2030 Bilingual Nation policy aims to “Most Hong Kong- and Bangkok- told CommonWealth Magazine last fall promote the island’s internationaliza- based NGOs and media have no clue that after he realized that Korea was not tion by boosting standards of English, that Taiwan is so competitive. And if an ideal base for him to cover China, he it is not clear how this bold target will nobody reaches out to them, they will took up MOFA’s offer and moved here be achieved. never come to Taiwan.” with his wife. “Taiwan is the best place Other issues that need to be resolved The professional blames excessive from which to observe China,” he said. are relatively low salary levels, lim- bureaucracy, fragmented responsibil- Taiwan must also try to assuage ited career opportunities, and a brain ities, poor communication between fears among media companies that set- drain leading to a shortage of available bureaus, and a lack of leadership for ting up a bureau on the island might talent in the local workforce, says GTI’s this situation. He points to the website provoke retaliation from Beijing. In Cole. “The presence of more interna- www.taiwanngo.tw, a bilingual portal that same CommonWealth article, an tional organizations will, I hope, compel launched by MOFA in December 2020, anonymous journalist suggested that Taiwan to become more competitive, as the most substantial effort the gov- The New York Times opted for Seoul with policies that are better aligned with ernment has made in this area. Yet, he because Taipei was too politically sen- the requirements of the 21st century.”

30 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

Media.indd 30 2021/1/31 11:18 PM 2021 A

Business Climate Survey

Report on Results

SPONSOR

Suite 706, Worldwide House 129 MinSheng East Road, Section 3, Taipei 10596, Taiwan Tel: +886-2-2718-8226 Fax: +886-2-2718-8182 www.amcham.com.tw

2021 BCS inside topics.indd 31 2021/1/31 11:18 PM 2021 Business Climate Survey

Entering 2021 with a Record Level of Confidence A Message from AmCham Taiwan Chairman C.W. Chin

2020 was the most challenging year the world economy had faced in many decades, but Taiwan showed its resilience and fortitude. As a result of the exemplary performance of the Taiwan government and health authorities in controlling the COVID-19 pandemic, Taiwan’s economy was one of the few in the world to see GDP growth. Taiwan’s stature in the world increased, and its relationship with the U.S. drew closer than at any time since formal diplomatic ties ended.

As AmCham Taiwan’s 2021 Business Climate Survey confirms, the Chamber’s business leaders seem more optimistic than ever before about Taiwan’s economic prospects in the year ahead and beyond. An impressive 85.7% of respondents expressed confidence in Taiwan’s economic outlook for the coming year. Over the past three years in which the same question was asked, the previous high was last year’s 59.9%. Even more significant was that 27.6% of the survey-takers this year said they were very confident about the next 12 months.

Similar confidence was expressed about Taiwan’s future economic performance over a three-year time span, and about respondents’ own companies’ prospects for revenue growth. Just over 40% of the companies say they plan to increase employment during 2021.

Here are some of the other major findings of the survey: • Nearly 40% say that the U.S.-China trade dispute has caused at least a small shift in their supply chains. Most see the dispute as having had an overall positive impact for Taiwan. • Respondents see Taiwan’s exclusion from multilateral/bilateral trade agreements as the most pressing concern for their company’s operations and Taiwan’s competitive positioning – more so than cybersecurity threats and IP infringement. 65% regard a U.S.-Taiwan bilateral trade agreement as important for their business, and 53% say the same for a double taxation agreement. • There was unanimous agreement that Taiwan has done an outstanding job in controlling the spread of COVID-19. • A majority of companies see power supply sufficiency and progress toward green energy as the biggest concerns regarding Taiwan’s future energy supply. • The vast majority of respondents (76.7%) view the Bilingual Nation 2030 project as beneficial to Taiwan’s economic development. • The top five priorities for the Tsai Ing-wen administration should be COVID-19 control, a bilateral trade agreement with the U.S., cross-Strait relations, energy supply, and talent development/retention.

The annual survey helps the Chamber shape its advocacy agenda for the coming year and serves as a useful reference for the Taiwan and U.S. governments, scholars, and others interested in U.S.-Taiwan economic relations.

32 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 32 2021/1/31 11:18 PM 2021 Business Climate Survey

Unprecedented optimism about economic prospects for the coming year A high 85.71% of those surveyed expressed confidence about 2021, including 27.55% saying they are “very confident.”

How confident are you about Taiwan’s economic growth over the next 12 months?

2021 2020

Ve r y c o n f i d e n t 27.55% Ve r y c o n f i d e n t 12.18% So m e w h a t c o n f i d e n t 58.16% So m e w h a t c o n f i d e n t 47.72% No t v e r y c o n f i d e n t 11.22% Nearly 86% No t v e r y c o n f i d e n t 32.49% Nearly 60% No t c o n f i d e n t a t a l l 1.02% No t c o n f i d e n t a t a l l 7.61% Do n ’ t k n o w 2.04% Do n ’ t k n o w 0%

0 20 40 60 80 0 20 40 60 80

Over the past four years in which this question was asked, the previous high for the overall confidence level was only 59.9%. “Taiwan's ability to contain the spread of COVID-19 in 2020 will benefit firms’ ability to boost their sales,” said one survey- taker. As vaccines enable economies in other countries to rebound in 2021, said another respondent, the domestic economy will be “fueled by a surge in global demand for Taiwanese products.”

Expectations are also positive over a three-year timespan The degree of confidence continues to be strong beyond this year.

How confident are you about Taiwan’s economic growth over the next 3 years?

2020 2020

Ve r y c o n f i d e n t 19.39% Ve r y c o n f i d e n t 15.23% 78+% Nearly 71% So m e w h a t c o n f i d e n t 58.67% So m e w h a t c o n f i d e n t 55.33% No t v e r y c o n f i d e n t 17.35% No t v e r y c o n f i d e n t 24.37% No t c o n f i d e n t a t a l l 2.55% No t c o n f i d e n t a t a l l 4.57% Do n ’ t k n o w 2.04% Do n ’ t k n o w 0.51%

0 20 40 60 80 0 20 40 60 80

The three-year outlook also represented a record high level of confidence, at 78.06%. “The positive outlook for Taiwan’s 3-year economic growth is due to the decent control of COVID-19 and the healthy industrial environment,” commented one business leader taking the survey.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 33

2021 BCS inside topics.indd 33 2021/1/31 11:18 PM 2021 Business Climate Survey

Companies are also optimistic about their own businesses Healthy earnings are expected both this year and over the coming three years.

How confident are you about your company’s prospects for revenue growth over the next 12 months?

2021 2020

Ve r y c o n f i d e n t 32.14% Ve r y c o n f i d e n t 24.37% Nearly 82% So m e w h a t c o n f i d e n t 49.49% So m e w h a t c o n f i d e n t 53.30% No t v e r y c o n f i d e n t 13.78% No t v e r y c o n f i d e n t 17.26% Nearly 78% No t c o n f i d e n t a t a l l 2.55% No t c o n f i d e n t a t a l l 4.57% Do n ’ t k n o w 2.04% Do n ’ t k n o w 0.51%

0 20 40 60 80 0 20 40 60 80

Asked to assess the prospects for their own business operations in 2021, 81.63% of the respondents described themselves as confident of a good year. Almost a third – 32.14% – said they were very confident. “The company will ride on Taiwan’s positive economic outlook in the future,” said a survey-taker.

How confident are you about your company’s prospects for revenue growth over the next 3 years?

2021 2020

Ve r y c o n f i d e n t 30.61% Ve r y c o n f i d e n t 30.46% Nearly 84% So m e w h a t c o n f i d e n t 53.06% So m e w h a t c o n f i d e n t 51.27% No t v e r y c o n f i d e n t 13.78% No t v e r y c o n f i d e n t 14.21% Nearly 82% No t c o n f i d e n t a t a l l 1.02% No t c o n f i d e n t a t a l l 3.05%

Do n ’ t k n o w 1.53% Do n ’ t k n o w 1.02%

0 20 40 60 80 0 20 40 60 80

An even higher proportion of respondents – 83.67% – reported that they were either very or somewhat confident about the outlook for their own business over the coming three years. “The government's infrastructure and energy plans, plus the trade issues with the PRC resulting in greater supply chain investment in Taiwan, will help drive the economy over the next 3 years,” commented one of the respondents.

34 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 34 2021/1/31 11:18 PM 2021 Business Climate Survey

Coping with COVID-19

How satisfied are you with the Taiwan government's efforts to control the COVID-19 outbreak so far?

Ve r y s a t i s f i e d 79.44% 96+% So m e w h a t s a t i s f i e d 16.67%

Ne u t r a l 3.89% Di s s a t i s f i e d 0%

0 20 40 60 80

How satisfied are you with the government's economic relief measures in the wake of the crisis?

Ve r y s a t i s f i e d 21.67% Nearly 64% So m e w h a t s a t i s f i e d 42.22% Ne u t r a l 28.89% So m e w h a t d i s s a t i s f i e d 6.11% Ve r y d i s s a t i s f i e d 1.11%

0 20 40 60 80

The respondents were unanimous in their praise for the government's efforts to control the pandemic and highly satisfied with the relief measures.

What should the government prioritize in post-COVID efforts to help stabilize Taiwan's economy in 2021? Top responses: • Travel bubbles or shorter quarantines for business travelers • Financial assistance to affected industries • Tax benefits or alleviation • Flexible HR practices • Access to COVID-19 testing

What effect do you think the COVID-19 outbreak will have on Taiwan's 2021 GDP? Nearly one-third of respondents answered “very little or no effect.” Another third expects lower growth by 0.5 to 1.1 percentage points.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 35

2021 BCS inside topics.indd 35 2021/1/31 11:18 PM 2021 Business Climate Survey

COVID-19 has affected nearly all businesses to some degree

To what extent has the COVID-19 outbreak negatively impacted your business in Taiwan?

La r g e e x t e n t 13.89% So m e e x t e n t 28.33% 80+% Sm a l l e x t e n t 38.89%

No t a t a l l 17.78%

Do n ’ t k n o w 1.11%

0 20 40 60 80

Respondents stressed the disruption of travel and event plans, reduction in demand for products and services, and the disruption to supply chains.

Many companies have benefited from remote working

Has remote working been an effective alternative for your company?

Ex t r e m e l y e f f e c t i v e 10.56% Ve r y e f f e c t i v e 27.22% 76+% So m e w h a t e f f e c t i v e 38.33% No t s o e f f e c t i v e 12.22% No t a t a l l e f f e c t i v e 3.33% N/ A 8.33%

0 20 40 60 80

More than 43% of respondents say that remote working arrangements may be a permanent option for the way their company operates in the long-term.

36 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 36 2021/1/31 11:18 PM 2021 Business Climate Survey

Impact of U.S.-China trade dispute

To what extent did the U.S.-China trade dispute What do you consider the economic impact of have an impact on your business in 2020? the U.S.-China trade dispute to have been on Taiwan so far?

Some extent Somewhat positive 32.79% 40.44%

Very positive Large extent 10.38% 12.02%

Small extent Don’t know 32.79% 1.64% Don’t know Very negative Mixed on balance 1.09% 4.92% (neutral) Somewhat negative 31.15% Not at all 11.48% 21.31%

Over 77% felt the business. More than half see a positive impact on Taiwan.

Has your company redirected business from To what extent has the U.S.-China trade dispute China to Taiwan since the start of the U.S.- caused a shift in your company's supply chain? China trade dispute?

La r g e e x t e n t Y e s 12.02% 5.46% So m e e x t e n t 13.66% Nearly 39% No 56.83% Sm a l l e x t e n t 19.67% Do n ' t k n o w 2.73% No t a t a l l 31.15% No t a p p l i c a b l e 28.42% No t a p p l i c a b l e 30.05%

0 20 40 60 0 20 40 60

Many companies did not have business in China. Over one-third of respondents report a shift in their supply chain due to the U.S.-China trade dispute.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 37

2021 BCS inside topics.indd 37 2021/1/31 11:18 PM 2021 Business Climate Survey

Strengthen Economic Relations with the U.S. Respondents enthusiastically support bilateral agreements with the U.S.

How important is it for your business in Taiwan that the following agreements be signed between the U.S. and Taiwan?

Bilateral trade agreement Double taxation agreement

Ve r y i m p o r t a n t 27.32% Ve r y i m p o r t a n t 20.77% 65+% 53+% So m e w h a t i m p o r t a n t 37.70% So m e w h a t i m p o r t a n t 32.24% No t v e r y i m p o r t a n t 18.58% No t v e r y i m p o r t a n t 20.22% No t i m p o r t a n t 11.48% No t i m p o r t a n t 13.66% Do n ’ t k n o w 4.92% Do n ’ t k n o w 13.11%

0 20 40 60 80 0 20 40 60 80

To what extent do you regard the following as possibly impacting your company’s business operations and competitive positioning in Taiwan in the coming year?

12.02% La r g e e x t e n t 30.05% So m e e x t e n t Cybersecurity threats 34.43% Sm a l l e x t e n t 18.58% No t a t a l l 4.92% Do n ’ t k n o w

13.11% 21.31% Intellectual property rights 31.15% infringements 29.51% 4.92%

Companies see Taiwan’s exclusion 16.94% from multilateral/bilateral trade 33.33% pacts as the major negative impact Taiwan's exclusion from on their business. multilateral/bilateral trade pacts 30.05% 14.75% 4.92%

0 20 40 60

38 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 38 2021/1/31 11:18 PM Employment trends 2021 Business Climate Survey

Energy issues remain a central concern for businesses The level of apprehension continues to decrease, but still remains high.

Regarding the future of Taiwan’s power supply, how concerned are you about the following aspects?

Power supply Voltage stability Electricity cost Progress toward sufficiency green energy 64.5% 51.4% 50.3% 58.5% 4 percentage point drop 7 percentage point drop 9 percentage point drop New question from last year from last year from last year

42.62% 40 36.61% 32.79% 32.24% 33.88% 27.32% 24.59% 26.78% 21.86% 20.77% 18.03% 20 14.75% 14.75% 12.02% 13.66% 12.57% 6.56% 2.73% 3.28% 2.19% 0

Ve r y c o n c e r n e d So m e w h a t c o n c e r n e d No t v e r y c o n c e r n e d No t c o n c e r n e d Do n ’ t k n o w

The Taiwan government aims to phase out nuclear power from Taiwan's energy mix by 2025 and to replace it with increased use of renewable energy resources and natural gas. To what extent will concerns about the practical achievability of this nuclear-free goal affect your company’s decisions on future business expansion in Taiwan?

La r g e e x t e n t 12.02% 30+% A decrease to just under half of the 2020 level. So m e e x t e n t 18.03% Sm a l l e x t e n t 27.32%

No t a t a l l 35.52%

Do n ’ t k n o w 7.10%

0 20 40 60 80

While there is still significant concern regarding Taiwan’s ability to achieve its ambitious renewable energy goals, respondents appear to be much less worried about the drive to eliminate nuclear power, possibly due to the availability and feasibility of alternative energy sources.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 39

2021 BCS inside topics.indd 39 2021/1/31 11:18 PM 2021 Business Climate Survey

Businesses continue to have a largely positive view of Taiwan’s human capital

To what extent are you satisfied with your company’s ability to recruit enough – and sufficiently capable – personnel to meet your business needs in Taiwan?

2021 2020

St r o n g l y s a t i s f i e d 11.05% St r o n g l y s a t i s f i e d 8.33% 48+% 56+% So m e w h a t s a t i s f i e d 37.02% So m e w h a t s a t i s f i e d 47.78%

Ne u t r a l 24.86% Ne u t r a l 20.56%

So m e w h a t d i s s a t i s f i e d 23.20% So m e w h a t d i s s a t i s f i e d 18.89%

St r o n g l y d i s s a t i s f i e d 1.66% St r o n g l y d i s s a t i s f i e d 4.44%

Do n ’ t k n o w 2.21% Do n ’ t k n o w 0%

0 20 40 60 0 20 40 60

Given the disruptions caused by the COVID-19 pandemic, the slight drop in the rate of satisfaction from 2020 may be related to the corresponding changes to the workplace that companies have been forced to make.

Taiwanese employees are considered reliable, ethical, and hardworking

Yet a lack of English language skills and global outlook are seen as issues hampering their competitiveness.

Out of 18 characteristics

Top 6 Bottom 6 1 Trustworthiness 13 Creativity/ability to innovate

2 Execution of assigned tasks 14 Leadership

3 Loyalty 15 Communication skills

4 Business ethics 16 Cross-border mobility

5 Openness to training 17 International mindset

6 Teamwork 18 English ability

40 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 40 2021/1/31 11:18 PM TPP/BIA 2021 Business Climate Survey

The government’s signature programs are regarded as effective Companies hold a generally favorable view of the ongoing major initiatives launched by the Tsai administration – the 5+2 Innovative Industries program and the New Southbound Policy.

To what extent have the following government policies benefited Taiwan’s economic development?

5+2 Innovative Industries Plan New Southbound Policy

Some extent Some extent 32.78% 27.22%

Large extent Small extent 27.78% 10% Large extent Small extent 4.44% 26.67%

Don’t know Don’t know 19.44% 16.11% Not at all Not at all 11.11% 24.44%

To what extent are you satisfied with the government’s progress so far in implementing these specific initiatives?

5+2 Innovative Industries Plan New Southbound Policy

Some extent 26.11% Some extent 22.22%

Small extent Large extent 31.11% 1.67% Small extent 35.56% Large extent 2.22%

Don’t know 23.33% Don’t know 19.44%

Not at all Not at all 13.33% 25%

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 41

2021 BCS inside topics.indd 41 2021/1/31 11:18 PM 2021 Business Climate Survey

Many respondents expressed optimism regarding the government’s more recent initiatives

Under the Six Core Strategic Industries Initiative, to what extent do you think the following will benefit Taiwan’s economic development?

Information and Digital Cybersecurity Biotech and Medical Technology Technology

Large extent Large extent Large extent 36.67% 48.33% 30.56% Some extent 32.78% Some extent Some extent 40.56% Don’t know 31.67% 6.67% Don’t know Not at all 8.33% Don’t know 7.22% 3.33% Not at all Small extent Not at all Small extent 6.11% Small extent 19.44% 3.89% 10% 14.44%

National Defense Green and Renewable Strategic Stockpile Energy

Some extent Large extent Large extent Some extent 24.44% 28.33% 13.89% 31.11% Some extent Large extent 35% 10.56%

Don’t know 12.22% Small extent Small extent Don’t know Don’t know 29.44% 34.44% 7.22% 17.78% Not at all Not at all Small extent Not at all 15% 6.11% 23.33% 11.11%

High-tech, cybersecurity, and medical technology are seen as being the most impactful to the future economy.

To what extent do you think the 2030 Bilingual Nation Project will benefit Taiwan's economic development?

Large extent 40.56% Some extent 36.11% Improving the English-language environment is seen as making Taiwan a more attractive investment location. “This is critical for Tai- wan's future if it is to be able to compete with regional financial centers such as Singapore and Hong Kong,” commented one survey- taker. “It has to be done at both the corporate Don’t know and education-system levels.” 2.78% Small extent Not at all 17.78% 2.78%

42 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 42 2021/1/31 11:18 PM 2021 Business Climate Survey

Innovation and market expansion: the main sources of growth

Which of the following areas do you see as the biggest opportunities for growth for your company in Taiwan over the next 1-3 years:

Pr o d u c t o r s e r v i c e i n n o v a t i o n 66.33% La r g e r s h a r e o f e x i s t i n g m a r k e t 48.47% En t r y i n t o n e w m a r k e t s e c t o r s 32.65% Ne w j o i n t v e n t u r e s a n d / o r s t r a t e g i c a l l i a n c e s 15.31% M e r g e r s a n d a c q u i s i t i o n s ( M & A) 10.71%

0 20 40 60 80

A high 40.33% of companies plan to increase employment this year

Such plans are significant, given the largely negative impact of the COVID-19 pandemic on employment in other economies.

Do you expect the number of your full-time equivalent employees in Taiwan to increase, stay largely unchanged from its current level, or decrease over the next 12 months?

2021 2020

In c r e a s e 40.33% In c r e a s e 34.44%

La r g e l y u n c h a n g e d 47.51% La r g e l y u n c h a n g e d 57.22%

De c r e a s e 10.50% De c r e a s e 7.78%

Do n ’ t k n o w 1.66% Do n ’ t k n o w 0.56%

0 20 40 60 80 0 20 40 60 80

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 43

2021 BCS inside topics.indd 43 2021/1/31 11:18 PM 2021 Business Climate Survey

Progress on Taiwan White Paper issues Over half of respondents applauded the National Development Council’s coordination efforts.

Since 2017, the government’s National Development Council has been holding quarterly meetings with AmCham committees to track and facilitate progress on White Paper issues. To what extent do you regard this as effective?

Ve r y e f f e c t i v e 12.22% Nearly 57% So m e w h a t e f f e c t i v e 39.44% Ne u t r a l 32.78% So m e w h a t i n e f f e c t i v e 7.22% Ve r y i n e f f e c t i v e 2.22% Do n ’ t k n o w 6.11%

0 20 40 60 80

Improvements in the regulatory environment continue at a gradual pace

2021 2020 2019 2018

Rulemaking follows international best practices 36% 41% 44% 54% say no say no say no say no

New regulations meet economic needs and demonstrate 36% 41% 41% 53% understanding of industry dynamics say no say no say no say no

38% 41% 46% 52% Laws and regulations are interpreted consistently say no say no say no say no

44 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 44 2021/1/31 11:18 PM 2021 Business Climate Survey

Improved interaction between industry and government More companies than last year expressed satisfaction with the government’s attention to the business community.

To what extent are you satisfied with the general level of attention given by Taiwan’s top policymakers to the needs of business, as well as their level of engagement with the private sector, in setting relevant policies?

2021 2020

St r o n g l y s a t i s f i e d 2.22% St r o n g l y s a t i s f i e d 2.2% 34+% Nearly 27% So m e w h a t s a t i s f i e d 32.22% So m e w h a t s a t i s f i e d 24.6% Ne u t r a l 35% Ne u t r a l 34.6% So m e w h a t d i s s a t i s f i e d 21.11% So m e w h a t d i s s a t i s f i e d 24.6% St r o n g l y d i s s a t i s f i e d 6.67% St r o n g l y d i s s a t i s f i e d 11.7% Do n ’ t k n o w 2.78% Do n ’ t k n o w 2.2%

0 20 40 60 80 0 20 40 60 80

Government priorities Industry’s view as to where the government should focus its efforts tracks closely with previous years, although maintaining a safe, pandemic-free environment takes precedence in 2021.

What should be the government’s top priorities during the current Presidential term?

u COVID-19 pandemic control

v Bilateral trade agreement with the U.S.

w Cross-Strait relations

x Energy sufficiency

y Talent development and retention

National defense and modernization of Taiwan’s banking system were listed as additional priority areas.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 45

2021 BCS inside topics.indd 45 2021/1/31 11:18 PM 2021 Business Climate Survey

Taiwan is seen as an excellent place to live and work Taiwan’s swift, successful handling of the COVID-19 pandemic has helped reinforce several of its positive qualities.

Asked about the quality of life in Taiwan, the respondents were generally enthusiastic. The top five positive factors The least favorable aspects cited were: cited were:

Personal safety Education system

Healthcare system Air quality and clean environment

Social stability Diversity and inclusion

Living costs

Friendliness toward foreigners

SURVEY PARTICIPANTS BY INDUSTRY

13.33% 16.11% Information and communications technology (ICT) Chemicals/Energy 15.56% 12.22% Healthcare-related products and technologies Media & Entertainment Retail & Trade 17.22% Consumer goods & Food/Beverage 26.67% Professional services Financial services Other 8.33% 3.33% 13.33%

46 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2021 BCS inside topics.indd 46 2021/1/31 11:18 PM TAIWAN BUSINESS

Pandemic Affects a Multitude of Industries in Taiwan

How have other, less well-reported-on industries coped with the changes brought on by this global pandemic? Insiders say that digital transformation and flexibility are crucial.

BY JAMES CHATER

his year as the economic impact and CEO, Jason Yeh, says the work people – one of the largest in its history of coronavirus rippled around of the company has three main com- – to be held in the first quarter of this the world, the hardship of some ponents, each with varying degrees year. Initially rescheduled for the third industriesT was more conspicuous than of susceptibility to the pandemic. The quarter, the event was eventually post- at others. Images of ghostly streets in first is putting on events as a “profes- poned indefinitely. “It doesn’t even look Milan and New York underscored the sional conference organizer” (PCO), promising for next year,” Yeh notes. pandemic’s impact on many aspects of the second is translation and interpreta- Most events of this kind are now the public-facing economy – bars, res- tion services for meetings, and the third taking place online, but the revenue taurants, and shopping centers. Fleets is operating a network of small and opportunities for organizers are consid- of grounded aircraft became an evoca- medium-sized conference centers. erably less when client companies no tive symbol of the plight of airlines and As a significant proportion of clien- longer require air travel, hotel rooms, or the tourism sector. tele for the conference centers comes banquets. GIS had to redirect resources However, these symbolic images from within Taiwan, the third of these to accommodate the trend toward dig- belie a much more complex economic business units has been largely insulated ital transformation. “Very quickly we picture. Of course, no facet of the from the impact of the pandemic. Once needed to adapt ourselves and train our global economy has been unaffected the government relaxed restrictions on staff with another skill set for coordi- by the pandemic, but for companies larger gatherings in public places, busi- nating those hybrid meetings,” Yeh says. in Taiwan with both domestic and ness bounced back within a few months. Employees were trained intensively international operations, the new envi- The other two units have seen in the use of technologies to facilitate ronment has brought its own challenges greater challenges, however. With online conferences. and opportunities. In particular, the border restrictions still in place, short- That such technology already existed experience of conference organizers, term conferences of a few days – which but often went unused illustrates that workspace providers, and public rela- often rely on foreigners being able to – at least in certain sectors – the pan- tions firms during this unstable period fly in and out of Taiwan conveniently – demic hastened changes that were demonstrates the accelerating impor- have become impossible to organize. already underway. tance of digital transformation and “It was supposed to be the best A newer challenge for meeting pro- flexibility in operations. year we’ve had in our thirty-year his- viders was how to confront the unique, How the GIS Group, a meeting tory,” Yeh says of the company’s PCO more human, test of conducting entire solution provider, has handled the situ- operations. Prior to the pandemic, the conferences online. ation is instructive. The group’s founder group had scheduled an event for 1,800 “We need to have ideas for how to

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 47

2 covid.indd 47 2021/1/31 11:19 PM TAIWAN BUSINESS

keep people engaged,” Yeh says. “It’s Forum published a report outlining the from a desire to move away from tra- very easy for people to lose their con- ways the pandemic will directly impact ditionally long – five- to ten-year – centration.” Conducting frequent polls workforces globally. Among these were leasing terms for office space, since the that necessitate engagement was one the need to promote the rapid reskilling pandemic has shown the risk in such method the group employed to combat of labor and the facilitation of more an arrangement. By offering possibil- listless online meeting participants. agile work. ities for shorter leases (one year, for Now, with a significant propor- The Executive Centre, a premium example) and other types of increased tion of his business impacted by limited office and co-working space provider, flexibility, the company has been able inbound business travel, Yeh is fur- exemplifies that need for greater adapt- to attract larger companies looking to ther concerned that his company’s ability. It operates a network of offices, downsize due to layoffs or to decen- industry will be negatively impacted coworking spaces, and meeting rooms tralize employees to accommodate by the dilemma facing the Taiwanese across the Asia-Pacific region, including social distancing policies. government: the strict early response six centers in Taipei – two in Taipei 101, Soon after the onset of the pan- to the pandemic increases pressure to two in Nanshan Plaza, and one each in demic, the Center began to sense this relax border restrictions but opening Shangri-la’s Far Eastern Plaza Hotel and shift in the needs of both existing and the border more widely could risk the Neihu New Century Building. potential clients and concluded “that spreading the virus. Although the dif- Shifts in companies’ workspace flexibility would be key,” Chuang says. ficulty facing airlines and hotels has requirements have been keenly felt by Unlike Yeh, she downplays the impact been well-publicized, Yeh says he wor- The Executive Centre, whose client that continued border restrictions could ries that “the government might not composition has undergone a notice- have on the company’s operations, put much focus on the business event able change during the past year. Before as she still sees much potential to be sector” when it devises policies to pro- the onset of the pandemic, the com- tapped in the domestic market. vide industry relief. pany’s primary clientele consisted of In fact, The Executive Centre is SMEs, often looking to test the water currently looking to open new loca- Rethinking the nature of work in Taiwan before committing to longer- tions in the coming year. In this sense, term office space. the changes catalyzed by the pan- With the pandemic forcing many “Now, larger companies think flex- demic have benefited the company. nations into lengthy lockdowns, an ibility is much more important than “The pandemic has brought different important by-product has been reflec- before,” says Carrie Chuang, City Head opportunities we didn’t think of,” says tion on the nature of work and of The Executive Centre, Taipei. Chuang. “The more uncertainty, the company-employee relationships. Ear- Chuang believes this uptick in more opportunities we have because we lier this year, the World Economic interest from larger companies stems can offer flexibility.”

Many international events last year, such as the 2020 ICCA Conference jointly organized by GIS Group and the Kaohsiung city govern-

ment, were forced to go “hybrid,” with speakers and participants outside of Taiwan joining virtually. PHOTO: GIS GROUP

48 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

2 covid.indd 48 2021/1/31 11:19 PM TAIWAN BUSINESS

For office and co-working space providers in Taiwan, such as Regus and The Executive Centre, the pandemic has not only had a less pronounced impact on business than in other markets, it has opened up new opportunities related to clients seeking flexibility.

PHOTO: REGUS

Monet Chiang, Taiwan Country that have been impacted by the eco- background, Hsiang says her organi- Head for Regus, part of the larger nomic uncertainty and acceleration of zation’s central response has been a International Workplace Group (IWG), the digital transformation trend. Hsiang renewed commitment to technological outlined similar trends from his cli- Wei, Managing Director of Era Ogilvy transformation. “Work from home has ents. “Customers in Taiwan worry Public Relations, stresses that ongoing become work from Zoom,” she says. about the uncertainty of the future uncertainty overseas means interna- “We need to make sure that technology economy, so they’re more budget-con- tional partners continue to exercise can help people – or industries, corpo- scious and conservative,” he says. As financial caution. “It’s like people have rations, and our clients – to leverage Regus works with companies of varying pressed the pause button,” says Hsiang. the power of technology to transform sizes, Chiang explains that the com- “When they release it depends on when during this pandemic.” pany’s response has required agility. the pandemic goes away.” Through their engagement with Bigger companies are expressing greater Era Ogilvy's clients – including firms across a range of economic sec- interest in serviced offices, whereas AstraZeneca, Eva Air, and FedEx – tors, the companies approached for this smaller ones are requiring greater span a range of sectors, meaning the report offer a unique insight into how flexibility in terms of leasing due to firm has had to remain sensitive to the the pandemic has not only accelerated uncertainty within the economy. varying fortunes of industries during trends toward digital transformation, In response, Regus made its con- the pandemic. Logistics and pharma- but also how it has impacted the very tract periods, pricing, and leases more ceuticals have seen upticks, whereas nature of work. flexible, allowing customers to pay con- tourism and hospitality, naturally, have For Jason Yeh of GIS Group, this tracts as they go, cushioning them from seen declines. However, despite these means a fundamental reassessment of risks incurred during the pandemic. oscillations, Hsiang reports renewed what constitutes regularity in busi- Globally, Regus has also rolled out a interest from clients in the fourth ness. “We need to think that change new Home-to-Work brand. Responding quarter, after caution in the middle is normal,” he says. In this light, he to the increased demand for solutions of last year. “Clients have tried to remains concerned that the stable pan- to working from home, the new service keep their flexibility and agility,” she demic situation domestically could – which is offered on a membership explains. “But they also see an opportu- insulate Taiwan from the tempo of dig- basis – provides furniture, office sup- nity given the stability in Taiwan.” ital transformation internationally. plies, technology, as well as personal Nevertheless, Hsiang cites two cen- Dealing with that predicament will wellbeing products. However, as offices tral areas of concern regarding the require both foresight and courage, he in Taiwan have largely remained open, coming months: the continued deteri- says. “Nobody knows what the correct Home-to-Work has not yet been rolled oration of the pandemic overseas and answer will be, but we need to have the out domestically. increased protectionism in other mar- courage to step outside of our comfort It is not just workplace providers kets. Against this potentially volatile zones.”

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 49

2 covid.indd 49 2021/1/31 11:19 PM EXECUTIVE SUITE

Meet Peter Cleveland of TSMC

Washington, D.C.-based Peter Cleveland, Vice President of Global Policy for the Taiwan Semiconductor Manufacturing Co. (TSMC), has an insider’s knowledge of how to frame and convey the interests and benefits of a multinational corporation to a broad audience. Given his many years on Capitol Hill, as well as his experience in the private sector working on technology issues, Cleveland is also inti- mately familiar with the global semiconductor industry and Taiwan’s key position in it.

In a phone conversation with TOPICS Senior Editor Jeremy Olivier in January, Cleveland discussed his long and varied career in the public and private sectors, the significance of TSMC to the global tech market, and the day-to-day work he does as top liaison between Tai- wan’s “silicon shield” and the U.S. government.

What was your experience with TSMC has been one of the key players in Washington, D.C. and beyond ben- Taiwan and its semiconductor industry behind Taiwan’s success in this area. efited you in your roles at Intel and before joining TSMC? TSMC? As a former public servant on Cap- How did you come to the decision Without doubt. When you have itol Hill, I was involved in Taiwan- to join TSMC after concluding your experience in the government trenches, related issues for many years. During decade-long tenure at Intel? you understand how lawmakers and my government career of over 16 years, Due to my extensive exposure to regulators and policy officials make I worked on the Senate Foreign Rela- Asia and my experience working on decisions. You have more political intu- tions Committee – specifically the East Capitol Hill, I had become familiar ition and more detailed knowledge Asia subcommittee – and I had the with several senior corporate leaders about what decisionmakers in Brussels opportunity to visit Taiwan on many at TSMC. I felt that there was a real or Beijing or Washington, D.C. believe occasions. I also got to meet many of the opportunity to expand my horizons is important. I use that intuition and Taiwan representatives to the U.S. over and work for a multinational that the knowledge I’ve accumulated to edu- the years, including Fred Chien, Jason was moving the global ICT industry cate and advocate, to help people in Hu, C.C. Chen – who is now Deputy forward in such a positive way. The government understand TSMC’s value Minister of Economic Affairs – and the leadership at the company is modest proposition, as well as the impact of current top diplomat, Hsiao Bi-khim. and thoughtful, and laser-focused their decisions on a company as impor- Through this experience, I’ve developed on developing and improving the sil- tant and as highly valued as TSMC. a great fondness for Taiwan and respect icon production process. The notion Experience working in govern- for the government ofﬁcials I’ve had the of going on to start their government ment is therefore absolutely crucial. pleasure to meet and work with. relations advocacy program – to be a It’s allowed me to have a much better I went into the semiconductor busi- pioneer in this space – was therefore understanding of the risks and rewards ness about 10 years ago after leaving very appealing to me, on both a per- officials consider before making deci- government, and my position at TSMC sonal and professional level. sions regarding export controls, issuing started only around 18 months ago. federal incentives for onshoring manu- Taiwan has done a terriﬁc job in terms Has your time as a public servant facturing, or taking other statutory or of building a leading chip industry, and and all of the connections you’ve made regulatory steps.

50 TAIWAN BUSINESS TOPICS • FEBRUARY 2021

Cleveland.indd 50 2021/1/31 11:20 PM EXECUTIVE SUITE

What makes IT – and particularly promoting the interests of a foreign semiconductors – such an attractive company compared to those of a U.S. industry to work in? What develop- enterprise like Intel? ments have you seen since beginning TSMC is a multinational corpora- your career in this area that have excited tion that serves marketplaces around you? the world. Our status as a non-U.S. Semiconductors are the most impor- company is thus not relevant when con- tant technology product in the world. sidering the critical products that we They’re extremely hard to understand make for consumers and companies and are one of the most difficult prod- worldwide. We’re everybody’s foundry ucts to manufacture. Just think about and we try to be proactive in reaching it: we’re producing a piece of silicon out to key decisionmakers so that they the size of a postage stamp that con- understand that where we’re from is tains 11 billion transistors, and which not significant. It’s the work that we do has the power to create the voltage and the world. that matters most. electricity necessary for platforms on It’s been extremely gratifying to handsets, laptops, desktops, and super- work for the corporate leaders at the What was TSMC’s basis for computers. company, including Chairman Mark choosing Arizona as the site for its This fact makes working for such an Liu, CEO C.C. Wei, and Vice Presi- planned US$12 billion investment? important company – one that creates dent and General Counsel Sylvia Fang. What advantages will this investment a fundamental computing power for They’re extremely nice and clever and bring the company in the years ahead? so many applications used by industry, easy to work for, and are dedicated to The tech supply chain is a critical governments, and consumers – incred- their mission of producing the very best issue, one that is now a core focus of ibly exciting and inspiring. semiconductor products for customers industry and government alike. While worldwide. the majority of TSMC’s manufacturing Before working for Intel and even- is still in Taiwan, we wanted to tap into tually TSMC, you previously served In your role as Vice President of the global talent market – to have oper- as Chief of Staff for California Senator Global Policy at TSMC, what does a ations close to where the resources and Dianne Feinstein. Why did you decide normal day at work look like for you? many of our key customers are. Ari- to make the move to corporate affairs? Let’s take today as an example. zona was thus a natural fit for TSMC in What knowledge and skills did you I’m currently being interviewed by an terms of building out its global capacity. need to carry over from politics to your important business organization in There are over 65 semiconductor com- current career? Taiwan and in just a couple of hours, I panies based in the Phoenix area already Policymaking and lawmaking have will hop on a call with Congresswoman – it truly is “semiconductor country” – long been topics of great interest to me Debby Lesko of Arizona’s 8th con- and there are existing clients and supply and I was always a public servant at gressional district to discuss TSMC’s chains there, which makes it an ideal heart. At the same time, I didn’t feel pending investment there. Right after location for our planned 5nm wafer fab. the need to do that for my entire career. that, I will speak with other company I’m happy to say that the announce- And because I worked for Senator Fein- representatives to a trade association ment to establish a presence in Phoenix stein – who is herself a wonderful public called SEMI – which represents all the has gone well, and we expect it will servant and an admirable leadership global semiconductor equipment makers take a few more years before our opera- figure in American politics – I was deter- – on a few issues related to export con- tions there are underway. mined to find an industry to work in trols. That will be followed by another that made a difference in people’s lives. conversation with the Greater Phoenix If you had one piece of advice for a I wanted to be in a place that was con- Economic Council, and then a call with young professional looking to go into structive and affirmative and positive, Sylvia Fang – my direct boss – to report your field, what would that be? and which contributed to consumer on some recent developments. You have to first ask yourself what knowledge and edification. And so, So, a typical day is packed with you’re passionate about. What do you technology was a very natural fit for me. talking to lawmakers, working with love to do? What interests you? Try The semiconductor industry had a fellow representatives of industry to identify that early in your life and big presence in Silicon Valley and after companies, conferring with industry then pursue it. Frame your education spending a decade at Intel, I decided to organizations, and communicating inter- around it and get to know people in move on to TSMC due to their global nally with senior officials at TSMC. that particular space. Try not to be too presence and impact. A couple years prescriptive, but do find something you into this project of establishing a gov- What is the importance of having like well enough that you can do it for ernment affairs department, we’re an American voice as liaison for a for- 10-12 hours a day. Once you’ve identi- making steady progress, with a growing eign multinational like TSMC? What fied that, you’re well on your way to a team that spans several markets around are the challenges of articulating and successful career.

TAIWAN BUSINESS TOPICS • FEBRUARY 2021 51

Cleveland.indd 51 2021/1/31 11:20 PM