What makes Taiwan so important in microchip production?
In: 6
Right now: the decades of investment, development and experience.
There’s nothing inherent about Taiwan that was destined to make it that way, but it was historically the place where labour was cheap and companies outsourced their production to.
And one thing about mass production thing is that once someone gets good at it, it’s difficult to catch up with them. There’s job opportunities, which encourage people to study towards it. There’s the institutional experience of seasoned professionals that only comes with having done the job for decades. Without those, you have a limited labor pool and more inefficiencies.
So Taiwan offers either high quality or lower prices, sometimes both. And that attracts customers. That generates investment. That spurs progress. It’s a positive feedback loop.
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