Clusters and Economic Growth in Asia
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Clusters and Economic Growth in Asia

Edited by Sören Eriksson

This detailed book explores and provides insights into the development and transformation of various clusters, economies and industrial sectors in East and Southeast Asia.
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Chapter 3: Industrial agglomeration of Taiwanese electronics firms in Dongguan, China: home effects and implications for industrial upgrading

Felix Haifeng Liao, Karen Zhihua Xu and Bin Liang


Since the 1990s, Taiwanese electronics manufacturers, especially computer producers, have become one of the dominant exporters in the global personal computer (PC) market. However, the regional division of labour in the Taiwanese electronics industry has significantly changed since the late 1990s. In 2009, Taiwan’s PC manufacturing output value reached USD 107.83 billion, while only 0.6 per cent of the worldwide output of Taiwanese electronics firms in PC hardware manufacturing was realized within Taiwan. By contrast, the proportion of that from Mainland China rose to 95.1 per cent (Ministry of Economic Affairs of Taiwan, 2010). Largely depending on the influx of Taiwanese electronics investment, Mainland China has surpassed Taiwan and the USA to be the largest manufacturer of computer hardware since 2005 (Reed Electronics Research, 2007). Over the past two decades, the industrial agglomeration of Taiwanese electronics investment in Mainland China has resulted in some electronics clusters in the specific coastal regions, particularly in the Yangtze River Delta (YRD) and the Pearl River Delta (PRD).

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