Airport Terminal Construction and Popularity of K Electronics... Taiwan SOC and Consumer Goods Market Opens

Achievements in Airport Terminal and Bridge Construction Orders
Samsung and LG Reach 35.5% Market Share in Home Appliances, Surpassing Japan
Coupang's Rapid Growth Threatens Momo, Taiwan's Largest Retailer

Editor's NoteTSMC of Taiwan, which has quietly grown in the semiconductor market, is reorganizing its "silicon shield" lineup in response to tariff pressures from U.S. President Donald Trump. Recently, by announcing a surprise investment of $100 billion (about 145.9 trillion KRW) in the United States, TSMC is simultaneously responding to the Trump-induced tariff bomb and strengthening its production bases within Taiwan to enhance its deterrence against China. In particular, it is accelerating the establishment of ultra-fine semiconductor process facilities to quickly respond to market demand. Once clinging only to unknown industries for survival, TSMC is now actively defending its position as the world's number one semiconductor foundry. Asia Economy diagnoses TSMC's strategies, risk factors, and opportunities for Korea in four installments through on-site reporting in Taiwan and expert interviews.

<Series Order>
<1> TSMC, the God... Visiting the '2nm' Sanctuary
<2> The '6 Constraints' Holding Back TSMC and Technology Security
<3> The Opening of Unknown Taiwan
<4> Korea-Taiwan, Between Deterrence and Cooperation

Construction of the Third Terminal (T3) is underway at Taoyuan International Airport, located about 40 km from Taipei City, the capital of Taiwan. This terminal project, scheduled for completion in November next year, was awarded in 2021 to Samsung C&T Corporation (Construction Division) of South Korea. (Photo by Samsung C&T)

On the afternoon of the 21st of last month, noisy roaring sounds accompanied ongoing steel frame construction of a new terminal at Taoyuan Airport in Taiwan. Located about 40 km from the capital Taipei, this is Taiwan's largest international airport, but due to a rapid increase in annual passengers, the airport corporation decided to build a third terminal (T3). The order scale was 1.8 trillion KRW, making it the largest public order project in Taiwan at the time. This terminal project, scheduled for completion in November next year, was awarded in 2021 to Samsung C&T Corporation (construction division) of Korea.

In December last year, local market officials and stakeholders gathered at the Green Line vehicle depot in Taoyuan City, Taiwan. This was to commemorate the first unmanned light rail train set operating in the area. After the second phase opens in 2029, this light rail, which passes through the city center and connects to Taoyuan International Airport, was supplied by Hyundai Rotem of Korea. Thanks to facilities born from Korean companies, it will be possible to travel from the airport to downtown in Taiwan's capital.

Korean companies are steadily achieving results in Taiwan's social overhead capital (SOC) projects. They are moving quickly not only in large-scale facilities such as airports, railways, and bridges but also in shopping malls and renewable energy-related projects.

In the white goods market, Korean companies' achievements stand out as well. According to a recent local survey in Taiwan, Korean companies such as Samsung Electronics and LG Electronics recorded a market share of 35.5% (as of last October), significantly surpassing the market share of Japanese companies (Sony, Panasonic), which had traditionally been strong in Taiwan, at 28.4%. While Sony, which had a single share exceeding 20%, and Panasonic, maintaining a low teens level, both showed sluggish trends, K-home appliances showed steady growth.

Among distribution companies, Coupang, which entered in October 2022, is expanding its footprint through word of mouth. Although specific sales figures have not been disclosed, Kim Beom-seok, Chairman of Coupang, mentioned the growth of related businesses when announcing last year's performance, stating, "Coupang Taiwan's Rocket Delivery net sales in Q4 last year increased by 23% compared to the previous quarter." According to global traffic site SimilarWeb, monthly visitors to Coupang Taiwan's site reached 3.7 million in January, a 2.6-fold increase compared to 1.4 million in October 2023.

Local insiders unanimously said that Coupang is growing so rapidly that it threatens Taiwan's largest online retailer, Momo. An industry insider explained, "Momo is so influenced locally that it imitates Coupang's 'online review service,' which is a latecomer," adding, "If the Wow Membership becomes active, another tectonic shift will occur." The insider further noted, "It is also noteworthy that Korean small and medium-sized enterprises' products are naturally distributed through Coupang."

Additionally, the golf IT platform SmartScore entered Taiwan in May last year, and KT&G, which established a local corporation in 2021, will start direct sales this year. Korean fashion brands such as Jeximix, MLB, and Discovery are gaining favorable responses riding the K-culture wave, and local insiders said they are recently increasing the number of stores.