You’re already manufacturing in Taiwan, but have you ever considered opening your own production line?
Nestled somewhere between Japan and the Philippines, Taiwan was once a little-known island often mistaken for Thailand. That changed during the Covid-19 pandemic, as Taiwan’s handling of the disease that killed millions worldwide saw Taiwan receive global praise and recognition.
From a business perspective, Taiwan dominates the worldwide semiconductor industry and accounts for over 60% market share of all global computer chips. A semiconductor shortage resulting from the Covid-19 pandemic saw the world turn to Taiwan for help, leading to plans for six new local chip plants.
Taiwan’s foreign direct investment is on a 15-year high
Taiwan’s well-rooted manufacturing capability is still rife today, with many Taiwanese factories acting as third-party OEM producers for international brands like Adidas. In fact, investment into Taiwan from companies like Costco and energy company Orsted saw foreign direct investment (FDI) leap to 275% in the first half of 2022, a 15-year high for the tiny island best known for its chip-making ability.
Taiwan is a great manufacturing location for global brands, so have you ever considered renting a production facility in Taiwan?
What are the benefits of opening a production facility in Taiwan?
Here are some of the ways opening a production facility in Taiwan can boost productivity for your business.
1. Local teams can solve production issues as they happen
Outsourcing manufacturing to a shared factory can lead to miscommunications and delayed orders. Without a local team to inspect issues as they happen, information can get lost in translation, and companies may feel like manufacturers are intentionally hiding key information. Having a production facility in Taiwan means there is a trusted team on the ground to handle issues promptly before they escalate into something bigger. Feeding information to the foreign headquarters in real-time and working together to implement action plans to resolve issues results in smoother production procedures and reduced quality issues, which can only boost productivity in the long run.
2. Local staff can win decreased lead times
Renting a production facility in Taiwan means manufacturers are at the heart of industrial clusters and surrounded by potential suppliers. Letting local staff build strong relationships with other local production facilities makes it more likely for you to be treated as a priority and receive preferential lead times. Moreover, being in close proximity to component suppliers decreases lead times, as you don’t have to wait for individual parts to be shipped to Europe or north America. Parts are sent directly to the production facility in Taiwan, fitted, and shipped out as finished products.
3. No more product mix-ups or low-priority orders
An added benefit of renting a production facility in Taiwan is that staff become experts in your product alone. Workers focus entirely on manufacturing your products, working towards the same end goals to produce the highest quality goods possible. They are aware that their output quality directly impacts the success of their employer, so they will work hard to ensure consistency.
Moreover, renting a production facility in Taiwan ensures that your orders are always top priority, as there are no orders from other companies fighting to be manufactured first. This also removes the risk of receiving the wrong product as factories aren’t dealing with production orders from multiple companies, which helps to avoid delays and boost productivity.
4. Hire industry experts in specific fields or send your own
Renting a production facility in Taiwan gives you greater control over the workforce. It may be advantageous to send top managers from the European or North American headquarters to oversee production and provide training, at least during the start-up phase. Experienced staff from the company headquarters understand business goals and ways of working, whereas local industry experts with a strong reputation in your particular industry understand how things are done in Taiwan. Either way, renting a production facility on the ground in Taiwan is one way for companies to hire the right staff and boost productivity.
Let Lone Star open a production facility on your behalf
Lone Star is your supply chain specialist in Taiwan and China. We analyze your business aims and can advise whether opening a production facility in Taiwan would be beneficial for your manufacturing needs. We have business connections in various industries throughout Taiwan and China and can help to make your manufacturing goals a reality. From automotive accessories to PCB assembly, glass technology to injection molding, our team is equipped to locate and select a manufacturing facility while taking care of the legalities involved on your behalf.
We establish your very own production line and help to interview and employ key workers that will form your local workforce. We will be there throughout the entire transition to help you build a successful manufacturing plant in Taiwan. Once your factory is up and running, the Lone Star team will make regular visits to ensure everything is going smoothly. Consider us an extension of your team, and leave nothing to chance.
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