This paper uses disaggregated U.S. product-level trade data to investigate the evolution of product quality among Taiwanese exported goods between 1989 and 2010. Our results suggest that during the sample period, while Taiwanese exports became more focused on products with longer quality ladders, they also fell further away from the world quality frontiers. This occurs because Taiwanese lost their quality advantage in existing products, and also because Taiwanese attempted to make a transition to products they initially did not have advantage in. We also study the evolution of product quality in different sectors, and our results suggest that while the trends look similar across sectors, there appears to be substantial heterogeneity in terms of the actual timing and causes.