02 The New Cost Reality: Why US Firms Relying on Taiwan's Old Labor Pricing Are Getting Burned
The labor cost assumptions that made Taiwan an attractive outsourcing destination a decade ago have shifted dramatically, leaving many US companies with eroding margins and outdated financial models. Wage inflation, intensifying domestic talent competition, and sector-specific pressures are forcing a fundamental reassessment of Taiwan's value proposition. This analysis examines where the exposure is greatest—and where forward-thinking US firms are finding new paths to margin recovery.