Porter’s diamond considers four important attributes which will create an environment helps the domestic industry. The four attributes can be applied to Taiwan becoming a manufacturing hub for electronics goods as shown below:
Pool of resources: Taiwan has well qualified people for manufacturing electronic goods. It has good infrastructure and transportation facility.
Demand conditions: There is demand throughout the world for electronic products produced in Taiwan. All major global companies source their electronic components from Taiwan.
Relating and supporting industries: Taiwan has a well-developed supply base for parts and rapidly expanding local computer industry.
Firm Strategy, structure and rivalry: there is competition and rivalry among local companies which help in better efficiency.
In addition, government role: The government has created Science-based industrial parks through which they encourage companies to invest in Taiwan. Land is given at very subsidize rates in these parks.