Japanese Companies in Taiwan Remain Confident Despite Intensifying Competition for Talent
Survey of 183 Japanese companies in Taiwan finds strong business growth, continued investment confidence and growing difficulty in finding the right talent.
Key Findings
・57.4% reported business growth in 2025
・59% expect further growth in 2026
・54.6% plan continued investment in Taiwan over the next three years
・48.1% say talent mismatch is their biggest hiring challenge
・57.4% cite labour shortages as the primary cause of recruitment difficulties
・Average salary increment: approximately 3%
・Most common Lunar New Year bonus: 2 months
TAIPEI, Taiwan — 15 July 2026 —
Reeracoen Taiwan's Taiwan Employer Outlook Report 2026 finds that Japanese companies operating in Taiwan remain confident in the market despite intensifying competition for talent. More than half reported business growth in 2025, the majority expect further expansion this year, and over half plan to continue investing in Taiwan over the next three years. However, those same companies are finding it increasingly difficult to hire the talent they need. Nearly half (48.1%) report that candidates are available but suitable matches are scarce, highlighting a structural mismatch between candidate supply and employer demand.
These are the central findings of the Taiwan Employer Outlook Report 2026, published by Reeracoen Taiwan Co., Ltd. (立樂高園股份有限公司). The report is based on a survey of 183 management-level representatives from Japanese companies operating in Taiwan, conducted between 30 January and 13 February 2026.
"Taiwan continues to be an important market for Japanese companies, and this year's findings reinforce the confidence many businesses have in its long-term potential. While employers continue to face increasing competition for skilled talent, they also remain committed to investing and expanding their operations. We hope this report provides practical insights that help employers better understand the evolving labour market and make more informed hiring decisions."
— Kosuke Soejima, General Manager, Reeracoen Taiwan Co., Ltd.
BUSINESS PERFORMANCE: 2025 IN REVIEW
Business performance among Japanese companies in Taiwan remained solid in 2025. The survey found that 57.4% of respondents reported growth compared with 2024, with 42.1% recording modest expansion and 15.3% reporting significant expansion. A further 23% reported flat performance, while 19.7% saw some degree of contraction.
The primary growth driver identified across respondents was Taiwan's semiconductor and AI ecosystem. Companies operating in or supplying into semiconductor manufacturing, data centres, AI servers, and electronic component production reported the most pronounced revenue improvements. Companies in wholesale, retail, and general services presented a more varied picture, with performance more closely tied to domestic consumer sentiment and exposure to currency and geopolitical headwinds.
INVESTMENT OUTLOOK: COMMITMENT TO TAIWAN HOLDS
Looking ahead, 59% of respondents expect business to expand further in 2026. A combined 54.6% indicated plans to invest actively or moderately in Taiwan over the next three years, with semiconductor expansion, R&D capability, automation, digital transformation, and retail network development among the most cited investment priorities.
Only 2.2% of respondents indicated plans to scale down Taiwan operations — a figure that reflects the degree to which Japanese companies regard Taiwan as a long-term strategic market rather than a transitional presence.
"The findings show that recruitment challenges in Taiwan are no longer simply about attracting more applicants. Many employers are receiving applications, but identifying candidates with the right skills, experience and organisational fit has become increasingly difficult. As competition for talent continues to intensify, companies will need to strengthen their employer branding, refine their recruitment strategies and enhance their employee value proposition to remain competitive."
— Daiki Matsubara, Deputy General Manager, Reeracoen Taiwan Co., Ltd.
HIRING HAS BECOME MORE DIFFICULT — FOR A DIFFERENT REASON
Despite the positive business outlook, recruitment conditions have become considerably more challenging. Approximately 85% of respondent companies conducted hiring activity in 2025, and demand is expected to remain active in 2026. Yet the nature of the difficulty has shifted in a way that has significant implications for how employers approach recruitment.
The survey found that 48.1% of respondents identified "candidates apply but suitable matches are scarce" as their single biggest hiring challenge. Only 20.2% cited insufficient application volume. Talent mismatch is now cited at more than double the rate of candidate shortage — a finding that distinguishes Taiwan's current labour market from a simple supply problem.
THE TALENT MISMATCH CHALLENGE
The distinction matters because the two problems require fundamentally different responses. Where volume is the constraint, employers can expand advertising reach and increase sourcing channels. Where mismatch is the constraint, the solution lies in more targeted sourcing, sharper job specifications, more rigorous pre-screening, and a clearer employer value proposition.
When asked about the root causes of their hiring difficulties, respondents identified a layered set of factors. Labour market talent shortage was cited by 57.4% of respondents, making it the leading cause by a significant margin. Non-competitive compensation was cited by 39.6%, followed by low industry attractiveness (28.4%), a gap relative to competitor offer conditions (24.9%), and low company brand recognition (23.1%).
AI AND SEMICONDUCTOR: A CROSS-INDUSTRY IMPACT
The concentration of AI and semiconductor investment in Taiwan is shaping the labour market well beyond the technology sector itself. The report identifies a pattern in which engineering and technical candidates are absorbed by semiconductor employers before hiring processes in other industries can progress. Several respondents specifically referenced the Hsinchu Science Park as a significant force drawing qualified talent out of the broader candidate pool.
This dynamic means that manufacturers, logistics companies, construction firms, and service businesses are increasingly competing — often without realising it — against semiconductor employers that operate at a different compensation level and offer a different scale of career opportunity.
COMPENSATION BENCHMARKS
The survey provides a benchmark for compensation practices among Japanese companies in Taiwan. Annual salary increments in 2025 clustered in the 2.1–4% range, with an overall cross-industry average of approximately 3%. For the Lunar New Year bonus, 2 months of pay was the most common level, cited by 35% of respondents. Finance and Insurance led all sectors on bonus levels, while IT and information services recorded the lowest average increment and bonus of any industry surveyed — a combination that the report flags as an elevated attrition risk given the intensity of digital talent competition in Taiwan.
WHY THIS MATTERS FOR EMPLOYERS IN TAIWAN
The findings point to a labour market in which business conditions and hiring conditions are moving in different directions. Growth is continuing, investment is being maintained, and headcount plans remain active — but the pool of candidates who match what employers actually need is not expanding at the same pace. As Japanese companies continue expanding operations in Taiwan, those that invest in employer brand visibility, improve the precision of candidate sourcing, and shorten hiring processes are likely to be better positioned than those relying on compensation adjustments alone.
About the Survey
The Taiwan Employer Outlook Report 2026 is based on a structured questionnaire distributed to Japanese companies operating in Taiwan between 30 January and 13 February 2026. A total of 183 management-level representatives participated. The survey forms part of Reeracoen Taiwan's annual employer research series and represents its 15th edition. Respondents span multiple industries, with wholesale and retail (31.1%), general manufacturing (20.8%), semiconductor and electronic components (8.7%), and construction and engineering (7.1%) representing the largest groups. 65% of respondents operate primarily from Taipei City.
About Reeracoen Taiwan
Reeracoen Taiwan Co., Ltd. (立樂高園股份有限公司) is a specialist recruitment firm supporting Japanese companies operating in Taiwan with permanent placement and executive search services across technical, commercial, and management functions. Reeracoen Taiwan is part of the Reeracoen Group, with operations across Singapore, Malaysia, Thailand, Vietnam, Taiwan, and Japan.
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Tel: +886-2-2718-9585
Email: rcntw-service@reeracoen.com.tw
www.reeracoen.tw
Media Contact
Valerie Ong
Regional Marketing Manager, Reeracoen Group
Email: valerie@reeracoen.sg
Website: www.reeracoen.tw
A copy of the full Taiwan Employer Outlook Report 2026 is available upon request.
