Taiwan Electrical and Electronic Manufacture's Association has recently released an investigation report for investment risk and environment of Southeast Asia and India in hoping to provide the latest investment information to Taiwan IT players.

Due to China's new labor policies aiming to raise the income of its people, labor costs in China have been rising in recent years and the country is gradually losing its advantage of having low labor costs. Although Taiwan IT players are moving their production lines into inland China as a temporary solution, IT players believe wages in inland China will catch up with that of the coastal area within the next 2-3 years and the players will eventually need to face the rising cost problem again.

Affected by China's one-child policy, manpower that enters the labor market in China is shrinking each year; therefore IT players' production lines will face a 5-10% labor shortage each year and the percentage even rises to 20% when competing against first-tier players. The report pointed out that China's average age in 2010 already rose to 34.2 years old, indicating that China is already starting to see an aging problem.

The association pointed out that both China and Southeast Asia will become a new investment market for IT players and players should be cautious for investing in different region since each region has its own special investment ecosystem.