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Taiwan has opportunity to reshape global supply chains: AIT
 

08/26/2020

Taipei, Aug. 26 (CNA) Taiwan has a unique opportunity to reshape global supply chains for the betterment of the world, as the COVID-19 pandemic continues to impact global supply chains, American Institute in Taiwan (AIT) Director Brent Christensen said Tuesday.

In an address made at an international investment forum, Christensen said the pandemic has exposed the risks of over-reliance on one country for medical supplies and pharmaceuticals, as well as for industries that are of strategic importance.

"The COVID-19 pandemic and its knock-on effects will likely change the calculus of many companies regarding the wisdom of continuing to invest so heavily in any one country, including China," Christensen said at the forum organized by Mergers & Acquisitions and Private Equity Council of Taiwan (MAPECT).

In response, the AIT director said the U.S. government is undertaking a whole-of-government approach to address supply chain restructuring, and has been engaged in talks with Taiwan's government, industry, and academia to explore how they can work together as both partners have "shared priorities in securing and reinforcing supply chains."

"We believe that Taiwan has a unique opportunity to reshape global supply chains for the betterment of the world," he noted, adding that Taiwan is at the center of regional high-technology supply chains, from manufacturing chipsets to those that are building the future internet of things, AI, and 5G networks.

Over the past three decades, Taiwanese firms have been "leading industry players" developing ICT and other supply chains in China, he noted.

However, in recent years, Taiwan firms have increasingly come to recognize the dangers of tying their futures to China and Taiwan's government is also taking steps to bring investment back, he said.

Meanwhile, other Taiwanese companies are seeking partnerships in the U.S. and in other like-minded economics in the Indo-Pacific to build new supply chains of the future, he added.

A notable case is the world's largest semiconductor company, TSMC, which announced in May that it plans to invest US$12 billion to bring semiconductor technology and supply chains to the U.S., according to the AIT official.

Christensen said TSMC's decision sends "an unmistakable signal that the future of high-tech supply chains remains in the U.S.-Taiwan nexus."

"TSMC's investment in the United States further reinforces the view that Taiwan is a critical node in global high-tech trade and U.S. technology supply chains," he added.

 

(By Chen Yun-yu and Joseph Yeh)

 

Link, https://focustaiwan.tw/business/202008260014

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