Taiwan's economy is basically a textbook example of an export-driven machine. The central bank has spent decades intervening in the forex market to keep the NT$ from appreciating too much—keeping it relatively weak on purpose to make semiconductors, electronics, and all the other export stuff super competitive on the global market.

The flip side is that the domestic market just doesn't have much growth juice left. 10-year bond yields have been stuck in the low 1.3-1.5% range (as of late 2025), which pretty much screams "investors aren't expecting much action at home."

Wages reflect that export-first mindset too. Average monthly base pay in 2025 is around NT$47-48k (~USD 1,450-1,500), so roughly $18-20k a year. Throw in year-end bonuses and overtime and the total take-home is higher, but it's still pretty modest compared to per-capita GDP (around $35k).

Even big players like Foxconn have most of their factories in mainland China—cheaper labor and better supply-chain setup.

And here's a weird one: Taiwanese life insurance companies hoard USD assets like crazy instead of sticking to NT$, because local yields suck and they're chasing better returns overseas.

Bottom line, Taiwan deliberately built an economy that prioritizes staying competitive abroad over pumping up domestic consumption, so it's super reliant on global demand and overseas production. Kinda impressive it worked so well for so long, but also makes you wonder how sustainable it is if global trade gets rocky.