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Sunday, December 14, 2008

China transport links to help spur Taiwan economy

China transport links to help spur Taiwan economy - from Reuters.

Basically by allowing direct commercial transportation, it helps Taiwan's economy. I am sure the current President hopes so.

Basically the article is full of what is hoped for, what will actually happen is a good question. Especially with direct flights available from China. The question is what value can Taiwan, and it's competitors Singapore and HK offer? China offers opportunity, but it's also a competitor to Taiwan. One possible area would be in semiconductors, where some operations are done in China, where others are done in Taiwan. A previous semiconductor I worked for did the fab (creating wafers) in the US, then did the testing, cutting, and mounting I believe in Singapore, and then flew them back to the US for the final testing. And when I left they were moving the final testing overseas (semiconductors is always looking to cut costs, overall it's all about huge volumes and efficiency).

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