AbacusThe chips are down for Taiwan, ‘so where the bloody hell are you’ Australia?

Taiwan’s tech and chip manufacturing industries are booming but the island faces geopolitical threats, leaving an opportunity for regional competitors

Can the Aussies get tech savvy and cash in? At present they’re shovelling coal out of hillsides, can no longer build cars and most of their chips are potatoes

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Published: 8:00am, 22 Feb 2021Updated: 9:10am, 22 Feb 2021

NEED ANY LOBSTERS, MATE?

Comparing Taiwan and Australia isn’t something I’ve seen done often. But I have noticed that there are a few similarities, and a few gaping differences, between the two island economies.

For example, the populations are similar: 24 million people in Taiwan, 25.6 million in Australia, though of course Australia is far bigger geographically. On a GDP basis, the Aussies produce twice as much per capita, but also carry twice as much debt. Economic growth for both has been strong, recessions have been rare, and both are currently a thorn in the side for the Chinese government both economically and politically.

The Taiwanese inherited Japanese frugality along with language, in addition to politeness and the love of quietly sitting in the bathtub together. The Aussies are a tad different when it comes to all that.

BONZA … NOT

The market capitalisation of listed Taiwan equities and liquid Australian equities is also about the same, at around US$1.6 trillion. But since the lows of March, their performances, though strong, have been very different: the ASX200 is up 51.7 per cent and TAIEX an impressive 88.7 per cent.