Profitable Opportunities in China & Taiwan

Robert Hsu, June 16, 2009

In this Issue:

A Boon for China's Tourism Industry
Digging Up Profitable Opportunities
Taiwan's Profitable Opportunities
Profiting from an Improved Relationship
Featured Question & Answer

Profiting from an Improved Relationship

With more money flowing between China and Taiwan now, the two nation's relationship is creating a number of profitable opportunities for investors -- if you know where to look. Since Taiwan is a dominant manufacturer of semiconductor wafers that are used in electronics, I bet you can guess the best sector to look in for investments.

The semiconductor industry in Taiwan has really taken flight in recent years as the demand for electronics has only grown around the world. Currently, Taiwan uses foundries to produce integrated chips for companies.

Because of the high cost to set up new semiconductor manufacturing facilities (over $3 billion) and their short life cycle (about five years), more and more companies use foundries to manufacture their chips. This has created a booming semiconductor industry in Taiwan.

And the company directly inline to profit from this trend and increasing Chinese investment is the dominant leader in the semiconductor foundry industry. This company's success over the years is a direct result of it offering a premium product with technical superiority.

Specifically, it makes premium logic chips (which process data) instead of commodities like memory chips (which merely store data) or central processing units (CPUs). And it manufactures a high volume of these chips, and then sells them at dirt-cheap prices -- a strategy the company has kept up even in the global recession.

As a result of its successful business model, the company has become the ultimate arms dealer in the semiconductor industry. In 2008, the company delivered its seventh-consecutive year of top-line growth.

And the company is looking at another profitable year in 2009, especially since Chinese investment will likely boost domestic demand for computers and household appliances. Thanks to political improvement and increased economic ties with China, Taiwan will be the biggest beneficiary because of its global dominance in supplying low-cost electronics devices.

This company's shares are already up 20% year to date. Don't miss out on the next move higher! Join Asia Edge today, and learn how you can start profiting from the improving relationship between China and Taiwan.

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