There are four parts to Porter’s diamond: (1) factor of endowments, which is a nation’s position in factors of production such as skilled labor or the infrastructure necessary to compete in a given industry; (2) demand conditions, which is the nature of home demand for the industry’s product or service; (3) relating and supporting industries, which is the presence or absence of supplier industries and related industries that are internationally competitive; (4) firm strategy, structure, and rivalry, which are the conditions governing how companies are created, organized, and managed and the nature of domestic rivalry. Taiwan’s factor of endowments was that it had a science-based Industrial Park in Hsinchu. The demand conditions were that the Taiwanese were already trained to deal with technology. The relating and supporting industries were that Taiwan was the best as building technology as the lowest cost. The firm strategy, structure, and rivalry were that Taiwan had no domestic rivalry; they provided the lowest cost.