The off-shoring strategies layout of Taiwan’s ICT/IT Industry in China

Despite a lack of political understanding, the economic relationship between Taiwan and mainland China is increasingly integrated and cooperative. Taiwan´s information and electronic industries have been investing in China since 1990; the range of investment began with early production activities, marketing activities after 1995 and then the fields of R&D. Taiwan has already become the largest source of trade deficit for Mainland China. Taiwanese enterprises have been distributed all along the economic corridor from Shanghai to Nanjing. Electronic information industry has gradually formed the cities´ pillar industries. By 2004, the cumulative contract value of Taiwan investments in Kunshan had reached 9 billion US dollars; while the actual investment exceeded 6 billion. The top 100 largest Taiwan enterprises have registered more than 150 companies in Kunshan, and 9 out of top 10 Taiwanese computer manufactures have established plants in Suzhou. First objective of this paper is to give a description of the industrial background, investment model and motivation factors which Taiwan´s IT/ICT manufacturers entered the Mainland market since 1990 with the viewpoint of evolution. The second objective of this study will expose how Taiwan raises its overall arrangement of off-shore strategies in China under the situation of co-opetition.