Main Industries in Kaohsiung

The scope of industries in Kaohsiung has expanded from the well-developed petrochemical, metal related, marine and ship-building industries. The emerging ICT, digital content, biomedical device, cultural and creative and tourism industries are helping to carrying Kaohsiung toward the goal of dynamic development.

Petrochemical Industry

Kaohsiung is the focal point of the petrochemical sector in Taiwan, and the 2013 industrial output of petrochemical-related products in Kaohsiung reached $ 28.3 billion, accounting for approximately 45% of the total value produced in Taiwan. The industrial cluster developed locally spans across the complete supply chain, from upstream raw materials and mid-stream production to downstream products. The main petrochemical clusters are centralized in the Dashe, Renwu, and Linyuan districts, surrounding the 3rd, 4th, and 5th naphtha cracker plants of CPC Corporation. At these facilities, upstream companies produce ethylene, propylene, butadiene and other petrochemicals as raw materials for further processing. Downstream companies benefiting from this cluster effect include USI Corporation, Asia Polymer Corporation, Formosa Plastics Corporation, Taiwan VCM Corporation, Oriental Union Chemical Corporation, China Man-Made Fiber Corporation, Grand Pacific Petrochemical Corporation, Taiwan Styrene Monomer Corporation, LCY Technology Corporation, China Petrochemical Development Corporation, Kaohsiung Monomer Company, Taiwan Prosperity Chemical Corporation, Dairen Chemical Corporation, TSRC Corporation, Nantex Industry Co., Ltd, Shin Foong Chemical Industry Co., LTD, Tasco Chemical Corporation, and China Synthetic Rubber Corporation.

The petrochemical industry in Kaohsiung continues to move upwards in the value chain, with a strong commitment in environmental protection and safety standards set by the policies of the central government. In an effort to improve efficiency, the petrochemical industry developed industrial several cooperative programs, product certification services, market research and technical R&D databases, as well as initiatives for optimal placement of human resources. Location:Renda Industrial Park, Linyuan Industrial Park Representative Companies: Chinese Petroleum Corporation, Formosa Plastics Corporation, Nan Ya Plastics Corporation, LCY Technology Corporation, China Petrochemical Development Corporation, Eternal Chemical Co., Ltd, Nantex Industry Co., Ltd, TSRC Corporation

Basic Metal & Metal Product Industries

60% of all metals & steel production in Taiwan is located in Kaohsiung, with five out of the top ten companies being based in Kaohsiung. This forms an important industrial cluster with a complete up and downstream supply chain. The largest steel company in Taiwan is China Steel Corporation. Its main production include cold and hot rolled steel, coating, steel plate, wire rod and steel bar, etc. with world-class quality and a 50% domestic market share. The company's production also supplies a large cluster of downstream companies that produces a wide range of value-added products. Importantly, these metal product manufacturers are globally competitive with high quality products. The Kangshan and Luzhu districts hosts the world's largest door lock supplier, the world's largest steel nut & bolt manufacturer, Taiwan's largest stainless steel exporter, bi-metal self-drilling screws and composite screw manufacturers. Take the screw manufacturing industry for example, screws produced in Taiwan accounts for up to one sixth of total worldwide market value in 2013, over $ 4.13 billion, with 93% destined for the export markets. Out of the 1275 screw and nut factories in Taiwan, 40% are based in Southern Taiwan. However, globalization and the rapid pace of development are driving competitive forces in this mature industry. Thus, companies are rapidly shifting towards higher value products such as molds, metal machinery components, automotive parts, metal materials and products, aerospace and medical instruments according to the requirement of industries. Aerospace industry development in Kaohsiung has been internationally recognized with aerospace components, electronic products and equipment manufacturing particularly strong. Special tools and die production and manufacturing, and accessed to the Japanese industry cooperation are also a key advantage.

Location: Kaohsiung Linhai industrial park, Kangshan, Luzhu Representative Companies: China Steel Corporation, Yieh United Steel Corporation, CHUN YU Works & Corporation, Jinn Her Enterprise Co., Ltd, King Slide Works Co., Ltd, Drewloong Precision Corporation, Taiwan Fu Hsing Industrial Co., Ltd, Tongtai Machine & Tool Co., Ltd, You Ji Machine Industrial Co., Ltd, Chaheng Precision Co., Ltd.

Yacht & Shipbuilding Industry

There are a total of 126 shipbuilders in Kaohsiung which accounts for half of the shipbuilding industry in Taiwan. The world's fourth largest dry dock is located in Kaohsiung, owned by CSBC Corporation, Taiwan. CSBC is a world-class shipbuilder, with a track record of manufacturing and repairing a variety of vessels including harbor vessels, containerships, bulk carriers, tankers, naval ships, as well as a variety of industrial machinery. In 2012, the Company successfully delivered 16 vessels, or a total of 385,753 compensated gross tons (cgt), generating sales of $ 1.02billion. The company also held a substantial backlog of containership orders, ranking 7th in the world and 4th in Asia.

In 2013, the Taiwan yacht manufacturing industry recorded a backlog of mega yachts (over 80 feet) ranked 6th in the world, making it Asia's largest manufacturing location for mega yachts. Out of the 33 yacht builders in Taiwan, 17 have manufacturing facilities in Kaohsiung, representing 80% of production market value. The high quality, technical artistry, and close distance to the raw material supply chain enables Taiwan yacht builders to compete effectively against other yacht building countries such as Italy, USA, UK, and Germany. There are some excellent tourist yacht harbors surrounding Kaohsiung, such as Hsin-Ta Harbor and South Star Yacht Industrial Park. Hsin-Ta Harbor, thanks to its vast hinterland and convenient amphibious transportation, has transitioned towards tourism and multi-leisure functional fishing port with three zones: the yacht and tourism zone, repair and shipbuilding zone, and the marine industry development zone. The city government is planning to give new life to the harbor area through the privately-funded BOT approach using local creativity and resources. Kaohsiung is further supporting the industry by promoting the "South Star Yacht Industrial Park” which occupies approximately 110 hectares. At completion, the industrial part is expected to bring in $ 167million of investments, producing a market value over $ 333 million, and creating over 4,000 jobs. The goal of the development project is achieve its status as Asia’s Luxury Yacht Manufacturing Center.

Location: Cijin Yachtbuilding Zone, Kaohsiung Linhai industrial park, Dafa Industrial Park

Representative Companies: CSBC Corporation, Taiwan, Ching Fu Shipbuilding Co., Ltd, Jong Shyn Shipbuilding Co Ltd, San Yang Shipbuilding Co., Ltd, Lung-Teh Shipbuilding Co., Ltd, Horizon Yachts, Kha Shing Ent. Co., Ltd, Ocean Alexander Yachts, Ocean Alexander Yachts, Johnson Yachts.

Information, Communication, and Technology (ICT) Industries

Kaohsiung enjoys a strong support system for the ICT industries, with science parks, software technology parks, export processing zones and industrial parks all within the city limits. Also, with both air and sea links, Kaohsiung developed a world-leading position and industrial clusters for the development of diverse ICT industries such as semiconductor testing & packaging services.

Comprehensive ICT component industries have formed an important settlement for developing Taiwan’s flat panel display and IC manufacturing industries. For example, the world’s largest testing and packaging company Advanced Semiconductor Engineering Inc. is headquartered in Kaohsiung. Other world leading companies of advanced printed circuit board, flexible printed circuit board, and passive component industries are also settled in Kaohsiung. In sync with global green energy development trend, the solar energy, high efficiency smart electric motor and electric vehicle component, and battery module industries are also enjoying robust growth in Kaohsiung.

Location: Nanzi export processing zone, Kaohsiung export processing zone, Ling-Kuang export processing zone, Gangshan district, Kaohsiung science park, Kaohsiung software Technology Park

Representative Companies: Advanced Semiconductor Engineering,Inc, Radiant Opto-Electronics Corporation, NXP Semiconductors Taiwan Ltd, Orient Semiconductor Electronics, Ltd

International Logistics Industry

The dual (sea and air) ports and the comprehensive transportation systems around them offer strong advantages for developing international logistics industries. In addition to preferential tax benefits, Kaohsiung’s free trade zone offers better integration. The opening the warehouses to private operations and providing automatic access control systems have increased efficiency, reduced cargo in port time and operating cost.

Kaohsiung is also selected as a demonstration area for the "Free Economic Pilot Zone" in Taiwan, opening further links to the world. Using the concepts of “beyond customs, but within the country” and "shop onsite, factory offsite" outsourced manufacturing, the port area and the peripheral areas can be integrated with e-commerce and logistics services to achieve intelligent logistics. Innovative customs mechanisms and cloud-based e-services provide businesses with greater added values through the free flow of goods and develop Kaohsiung into a distribution center for the global markets.

In June 2013, Kaohsiung became the 9th delivery port in Asia listed by the LME (London Metal Exchange) and established storage and transshipment capabilities for international non-ferrous metals in the Kaohsiung free trade zone. Kaohsiung also effectively links the major ports of mainland China to become a key link in the supply chain. Kaohsiung actively and continuously promotes itself as an international warehousing and transshipment hub in the Asia Pacific region. Location: CP Logistics, Inc, Kaohsiung air cargo park, Kaohsiung free trade zone, Nansing free trade port zone, Kaohsiung optimal mega container terminal Representative Companies: Yes Logistics Corporation, J.SHINE Internation Lodistics Co., Ltd, Kaochun Stevedoring Co., Ltd, Prosperco Logistics Int'l Corporation

Biotechnology and Medical Device Industry

Taiwan's dental medical device industry is based primarily in Kaohsiung. Stemming from the mature nuts & bolts industry and the support of higher education, Kaohsiung was able to leverage the resources of more than six teaching hospitals and 19 public & private universities in the city to develop a medical device industrial cluster. The main fields of research focus on medical device for dental, orthopedic and medical cosmetic services, as well as supporting medical tourism activities. Kaohsiung strives to become Asia's medical Silicon Valley and has geared up to attract investments of global medical device manufacturers. Location: Gangshan Penchou Industrial Park, Kaohsiung Science Park Representative Companies:United Orthopedic Corporation, Codent technical industry co., Ltd, Freerider Corporation, Hung-Chun Bio-S Co., Ltd, Alliance Global Technology Co Ltd

Tourism Industry

The development of the tourism industry can bring considerable benefits to surrounding communities. Multiple tourism resources are available in Kaohsiung and the city government is fully supportive in promoting Kaohsiung as a holiday destination. Known for its beautiful harbor, mountain, and sea views, Kaohsiung has also revitalized many local areas and neighborhoods including Pier-2 Art Center, Popular Music Center, Zuoying Navy Veteran's Village Park, Kaohsiung Ciaotou Sugar Refinery, and the Wei Wu Ying Cultural Center with local festivals and cultural activities.

Kaohsiung has actively developed its sea and air links, and has increased cross-straits and international flights and improved both hardware and software infrastructure. Budget airlines were introduced to Kaohsiung and the number of flights continues to grow. In 2013, international flights reached 24,946 flights, bringing over 3,402,463 passengers. In addition to air links, sea links have also seen annual growth, particularly the number of international cruises berthing in Kaohsiung Harbor. The number of travelers increased from 1,092,710 in 2009 to over 1,734,419 in 2013, a growth rate of 58.7%. In 2013, the total market value of the tourism industry exceeded $ 667 million dollars.

With an optimistic outlook towards business opportunities from Chinese individual travelers and international visitors, many corporations including E-United Group, Royal Group Motel & Hotel, FIH Regent Group, King's Town Construction Corporation are building new hotels actively. The total amount invested in hotel construction reached $ 1billion dollars, indicating a positive industry trend.

Cultural and Creative & Digital Content Industries

In recent years, Kaohsiung has identified the “culture and creative industry” as a key growth industry. The government has invested resources in developing culture and creative businesses such as movies, TV, pop music, digital content, visual communication, etc. The Pier-2 Art Center was revitalized to improve the usage of the unoccupied spaces, and incentives were provided to film production companies to increase competitiveness.

The atmosphere of culture and creative activity in Pier-2 Art Center, entrepreneurship of DAKUO Digital Art Kaohsiung and Kaohsiung Software Technology Park combine to spark an attractive core for industrial development. A wide variety of animation companies, 2D to 3D conversion companies, visual arts, gaming companies, music streaming companies, motion sensing theater companies all have invested in building operations in Kaohsiung, developing this area into a unique "digital content" industrial cluster.

Kaohsiung City Government also expanded the scope of its investment incentives and provides assistance with talent recruitment, cooperation of industries and academia and setting up a platform for comprehensive talent matching support. Location: Kaohsiung software Technology Park, Pier-2 Art Centre, DAKUO Digital Art Kaohsiung

Representative Companies: Soft-World International Corporation, KKBox, Brogent Technologies Inc., The White Rabbit Entertainment Inc.,XPEC Entertainment, CGCG Inc.