Prosperous Economic Relations between
Israel and Taiwan, November 2013
1. A glance at economic and trade relationship between two countries
For sure, Israel is one of Taiwan's key trading partners in the Middle
East.
For the figures of 2012, our two-way trade volume totaled 1.43 billion
U.S. dollars, while Taiwan export to Israel was US$ 620 million( up
1.33% ) and import US$ 810million( up 10.64%). This year, our
two-way trade volume totaled 990 million from January to August, 2013.
The principal items exported from Taiwan to Israel include (1)
Polyacetals, other polyethers and epoxide resins, in primary forms;
polycarbonates, alkyd resins, polyallyl esters andother polyesters, in
primary forms, (2)Parts and accessories (other than covers, carrying
cases and the like) suitable for use solely or principally with the
machines of headings 84.69 to 84.72 , (3) Synthetic staple fibres, not
carded, combed or otherwise processed for spinning, (4)Phenols;
phenol-alcohols, (5) Polymers of styrene, in primary forms
, (6)
Electronic integrated circuits, (7) Automatic data processing machines
and units thereof; magnetic or optical readers, machines for transcribing
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data onto data media in coded form and machines for processing such
data, not elsewhere speci, (8) Telephone sets, including telephones for
cellular networks or for other wireless networks; other apparatus for the
transmission or reception of voice, images or other data, including
apparatus for commu, (9) Motorcycles (including mopeds) and cycles
fitted with anauxiliary motor, with or without side-cars; side-cars, (10)
Flat-rolled products of stainless steel, of a width of 600mm or more.
Taiwan major items imported from Israel include (1) Electronic
integrated circuits, (2) Measuring or checking instruments, appliances
and machines, not specified or included elsewhere in this Chapter;
profile projectors, (3) Oscilloscopes, spectrum analysers and other
instruments andapparatus for measuring or checking electrical quantities,
excluding meters of heading 90.28; instruments and apparatus for
measuring or dete, (4) Halogenated, sulphonated, nitrated or nitrosated
derivatives of phenols or phenol-alcohols, (5) Machines and apparatus of
a kind used solely or principally for the manufacture of semiconductor
boules or wafers, semiconductor devices, electronic integrated circuits
orflat panel displays; machines, (6) Instruments and appliances used in
medical, surgical, dental or veterinary sciences, including scintigraphic
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apparatus,other electro-medical apparatus and sight-testingin struments,
(7) Instruments and apparatus for physical or chemical analysis(for
example, polarimeters, refractometers, spectrometers,gas or smoke
analysis apparatus); instruments and apparatusfor measuring or checki,
(8) Telephone sets, including telephones for cellular networks or for
other wireless networks; other apparatus for the transmission or reception
of voice, images or other data, including apparatus for commu (9)Cyclic
hydrocarbons, (10)Discs, tapes, solid-state non-volatile storage devices,
smart cards and other media for the recording of sound or of other
phenomena, whether or not recorded, including matrices and masters for
the pro, (11) Diamonds, whether or not worked, but not mounted or set.
With Israel's exceptional strengths in innovative high-technology
research and development and Taiwan's high-tech manufacturing
prowess and extensive marketing capabilities, two sides should take
advantage of the complementary nature of their respective economic and
trade structures to jointly develop new opportunities in third markets,
such as Mainland China, Southeast Asia and Eastern Europe. According
to statistics compiled by the Investment Commission, Israeli investment
in Taiwan has increased by nine cases since the 9th Taiwan-Israel
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Economic and Technology Cooperation Conference was held. This
brings total Israeli investment in Taiwan for the period from 1952
through to the end of October 2013 to 56 cases, with the total value
amounting to approximately US$19.24 million. Meanwhile, Taiwanese
investment in Israel has increased by one case, bringing the number of
cases to 27, with a total value of approximately US$41.54 million, for
the same period.
A large portion of this capital has been invested in the electronics,
electric machinery and other high-tech industries. Macronix, Winbond,
Taiwan Semiconductor Manufacturing Company, Teco and Tecom are
just a few of the major Taiwanese companies with investments in Israel.
Winbond also established local R&D Center in Israel.
All these figures and facts serve to underscore the extremely close
investment and cooperative ties that join our two countries together.
Much room exists for the further development of investment ties
between Taiwan and Israel. Israel will continue encouraging its
companies to invest in Taiwan or to set up strategic alliances with
Taiwanese enterprises. Meanwhile, Taiwanese companies can, through
mergers and acquisitions or via the investment model of Taiwan’s
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National Development Fund or Israel’s Giza Fund, engage in joint R&D
or investment cooperation with Israeli enterprises to expand their
presence in markets around the world.
Possibility for high-tech cooperation
Both Taiwan and Israel are recognized as important high-tech industrial
countries by the world, while Taiwan excels in manufacturing, Israel is
well known for its R&D ability and innovation, especially in the field of
telecommunication, biotechnology, security systems, pharmaceutics,
chip design, etc.
These complementary characters bring a vast
cooperation area for both countries to explore. Israel’s advancing
technology attracts a lot of Taiwan investments. In recent years, the
progress of several big investments between both countries. For example,
the Macronix Ltd. has invested over US$ 100 million into Tower
Semiconductor Ltd’s 2 Fab Project . Meanwhile, a growing number of
Taiwanese venture capital companies have invested in start up
companies in Israel. This trend is the outcome of the understanding that
the advanced technologies are an essential part of the capability of big
industries to survive the growing competition from global market. For
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the future’s high-tech cooperation between our two countries can be
summarized as follows: combine the strength of Israeli design in
high-tech with Taiwan’s manufacturing ability; initiate the exchanges in
experts and technology of both side’s incubation centers; form strategic
alliance and technology exchange among industries, public sectors and
universities of two countries; encourage VC and IC companies to invest
in Israel or Taiwan; attract Israeli experts to set up company in Taiwan;
set up joint R&D in system on a chip(SOC) technologies and enhance
cooperation to develop semiconductor equipments. To strengthen the
economic cooperation between two countries will not only bring to both
mutual benefits, but also build a solid foundation for a long-lasting and
closer relationship between two countries.
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