Taiwan On-The-Ground

Portfolio Manager, Carlos Hardenberg, and the MCP team are currently on-the-ground in Taiwan. So far, they have had company meetings with:

• All of MCP’s Taiwanese holdings
• Foundries
• IC design houses, incl. ASIC
• Silicon IP
• Server assemblers
• Material & component manufacturers
• Private companies looking to IPO soon

Here are some key facts about the country that we find particularly interesting:

Semiconductor Industry:

1. TSMC held a 64.9% share of global semiconductor foundry revenue in Q3 2024, a 12% YoY increase. Including other foundries, Taiwan’s total market share surpassed 72%, up 9% YoY¹.

2. The global semiconductor market has experienced significant growth, nearly doubling over the past decade. According to Gartner, revenues reached $626 billion in 2024, with forecasts predicting an increase beyond $700 billion in 2025².

Taiwan’s Economy:

3. Taiwan’s GDP grew by approximately 4.3% in 2024, bringing per capita GDP to around $34,000. Economic growth is projected to continue at a rate of 3.1-3.3% in 2025³.

4. Taiwan’s government debt-to-GDP ratio has steadily declined over the past decade, standing at 26% in 2024. In comparison, the U.S. debt-to-GDP ratio exceeds 120%⁴.

Taiwan’s Trade:

5. Taiwan’s exports surged by 32% YoY in February 2025, marking the strongest growth since February 2022⁵.

6. In 2024, Taiwan recorded a net trade surplus of $80 billion⁶.

7. Despite geopolitical tensions, Taiwan and China maintain robust trade relations and FDI flows. China remains Taiwan’s largest trading partner, although Taiwan ran a $70 billion trade surplus with China in 2024⁷.

More Facts!

8. Taiwan is recognised as a highly liberal and democratic nation, with a score of 94/100 in the Freedom House rankings⁸.

9. Taiwan is officially recognised by only 12 countries, most of which are small island nations⁹.

10. Taiwan has four official languages and over 20 living languages.

Footnotes:

• ¹ Statista
• ² Gartner
• 3 Statista
• ⁴ IMF
• ⁵ Trading Economics
• ⁶ Statista
• ⁷ Statista
• ⁸ Freedom House
• ⁹ Ministry of Foreign Affairs, Republic of China (Taiwan)