Afraid of a war in the Taiwan Strait? Reuters: SpaceX asks Taiwanese manufacturers to move production lines overseas

According to Reuters Vietnam, Musk's SpaceX has asked Taiwanese manufacturers to move their production lines overseas. Multiple sources revealed that due to geopolitical and political risks, Musk has asked more than one Taiwanese manufacturer to relocate their factories to regions such as Vietnam and Thailand. Satellite component manufacturer Chin-Poon Industrial told Reuters that SpaceX has asked them to transfer their manufacturing production from Taiwan to Thailand in order to receive new orders. As the source of this information declined to disclose their name, SpaceX has not responded to any comments.

An investment advisor based in Vietnam told Reuters that SpaceX has expressed interest in establishing a satellite equipment manufacturing center in Vietnam during a private meeting and is seeking intellectual property protection. When Reuters contacted the Taiwan Ministry of Economic Affairs regarding the relocation of a parts supplier of SpaceX from Taiwan to overseas, the Taiwan Ministry of Economic Affairs responded claiming that short-term geopolitical factors should not affect the supply chain relationship between international satellite companies and Taiwanese manufacturers.

Taiwanese businesses expand Vietnamese factories and Southeast Asian manufacturing chains to obtain Startlink orders

Taiwan SpaceX supplier Wistron NeWeb Corporation (WNC) began producing routers and other network equipment for Starlink at its factory in Ha Nam province in northern Vietnam this year, with much of WNC's expansion in Vietnam attributed to SpaceX's orders. Reuters reporters also observed several banners outside the local factory promoting recruitment information.

According to the news that SpaceX requested Taiwan to evacuate the production line, it came from an employee of a Vietnamese foreign company. The printed circuit board components of the supplier are installed in the ground equipment of Starlink through the components manufactured by Winstron. SpaceX directly informed them that they need to produce overseas outside Taiwan.

Shenmao Technology is a supplier of printed circuit board soldering materials that provides parts to SpaceX. The company announced in April that it would invest $5 million to establish a subsidiary in Vietnam, but it did not disclose the name of the customer, and the company has not responded to requests for comment.

According to official sources in Taiwan and public documents of the company, SpaceX's satellite component supplier and manufacturer, Global Microwave Technology, invested in a factory in Vietnam this year. Global Microwave Technology cited commercial confidentiality protocol as the reason for refusing to comment. However, they also stated that they are expanding their business in Southeast Asia, including new factories in Thailand and Vietnam.

According to the industry data of the Ministry of Economic Affairs in Taiwan, Taiwan has a huge satellite industry chain, with approximately 50 companies producing ground equipment and sensitive components. The government estimates that the industry's output value last year exceeded 6.23 billion US dollars. A source familiar with cooperation with the satellite industry in Taiwan also mentioned that SpaceX has around 12 direct suppliers, and these suppliers also rely on dozens of other suppliers.

The Vietnamese government has indicated that SpaceX is preparing to invest $1.5 billion in Vietnam, but there is no specific timetable. Despite various rumors and speculations, there is no official public statement about Starlink pressuring Taiwanese businessmen to relocate. Nevertheless, the fact that Cathay United Bank and several other Taiwanese banks are rushing to set up branches in Vietnam may provide some practical evidence for the rumors.

According to the data from the Financial Supervisory Commission, Taiwanese banks have a total of 337 branches in Southeast Asia, with the majority in Thailand at 107. Additionally, 14 Taiwanese banks are rushing to enter Vietnam, with a total of 62 branches currently. The new geopolitical and economic trends will force Taiwan's high-tech manufacturing production lines to move overseas. With the southward migration of the supply chain, both the upstream and downstream supply chains and labor markets will soon face major reshuffles and severe survival challenges.

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This article is reproduced with permission from: 'Chain News'