Taiwan heavily dependent on U.S. for technology

07/25/2017 06:26 PM

Taipei, July 25 (CNA) Taiwan depends heavily on technology provided by the United States, with Washington accounting for almost 80 percent of Taipei's total imported technology costs, the Ministry of Economic Affairs (MOEA) said on Tuesday.

In the latest report on Taiwan's technology imported costs and exported revenue released by the MOEA on Tuesday, Taiwan's imported technology costs came to NT$160.1 billion (US$5.28 billion) in 2015, with the U.S. accounting for NT$124.3 billion or about 78 percent of the total.

According to the ministry, imported technology costs include expenses like royalty payments, licensing fees, technology aids and consulting fees.

Japan was in second place with Taiwan's imported technology costs related to that country totaling NT$21.3 billion or 13.3 percent of the total in 2015, the MOEA said.

Taiwan's imported technology costs for 2015 fell 1.9 percent from 2014, when costs rose 7.9 percent from a year earlier, the MOEA added.

In terms of individual industries, imported technology costs incurred by the local electronic components sector were NT$87.4 billion, accounting for 54.6 percent of total costs, to become the largest category with electronic connector and printed circuit board firms paying a large amount in licensing fees, the MOEA's data showed.

The local computer and optoelectronics industry posted the second largest imported technology costs at NT$46.4 billion, making up 29 percent of the total, the data indicated.

The MOEA said that Taiwan's exported technology revenue in 2015 reached NT$36.2 billion, considerably less than imported costs. The 2015 figure was 6.9 percent higher than 2014, when the year-on-year increase stood at 12.1 percent.

China/Hong Kong were the largest buyer of Taiwan's technology with purchases hitting NT$12.7 billion, accounting for 35.1 percent of Taiwan's total exported technology revenue, ahead of Singapore, which imported NT$9.2 billion worth of technology from Taiwan, the MOEA said.

China was a keen buyer of Taiwan's flat panel and computer production technology, while Singapore largely bought power supply management technology, the ministry added.

The local electronic components sector enjoyed the highest exported technology revenue at NT$12.7 billion, with foreign buyers rushing to buy Taiwan's chip design technology and flat panel production technology, according to the MOEA.

The local computer and optoelectronics sector posted the second largest exported technology revenue valued at NT$6.9 billion, ahead of the power equipment sector with NT$6.7 billion in revenue, the MOEA said.

(By Chiu Po-sheng and Frances Huang)enditem/AW

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