Comparative Advantage - Taiwan - a Microchip Superpower

BBC Newsnight launched their Newsnight Global programme last night and the special on Taiwan was superb. Within it was a segment from Economics Correspondent Ben Chu on Taiwan's status as - far and away - the leading manufacturer and exporter of microchip production. It has dozens of high-scale "foundries" making a huge contribution to their economy.

This is a superb applied example to use of the out-sourcing of production but also the complex interplay of global economics and geo-Politics. Please do have a look at this short report from Ben Chu.

Here is the pattern of trade (for goods) for Taiwan - drawing on 2020 data and produced by OEC.org. The trade data shows the scale of Taiwan's revealed comparative advantage in producing micro chips. In 2020, Chinese Taipei exported a total of $374B, making it the number 10 exporter in the world. Integrated circuits accounted for 37% of their exports of goods in 2020.