The Taiwanese technology industry, led by giants such as TSMC and Foxconn, is increasingly looking overseas for expansion, driven by the shifting dynamics of the global supply chain. This move is not limited to major corporations but extends to suppliers of chip and electronics tools, materials, and construction services for technology facilities. Acter, a Taiwanese firm specializing in constructing electronics plants and cleanrooms, reported a 50% increase in its Southeast Asian operations last year, with its general manager, Lai Ming-Kuen, predicting continued growth into 2024. While Southeast Asia accounts for just over 10% of Acter’s revenue, the region has seen significant investment, particularly in Thailand, Vietnam, and Malaysia, due to a surge in electronics assembly, printed circuit board production, and semiconductor packaging industries.
However, Lai acknowledges the challenges of navigating the diverse markets of Southeast Asia, contrasting it with the more homogenous cultures and languages of Taiwan and China. Despite these challenges, Taiwanese investment in Thailand, Vietnam, and Malaysia surged by 146% in 2023, totaling more than $2.2 billion. The shift away from traditional manufacturing hubs in China and Taiwan is partly attributed to geopolitical tensions and a strategic emphasis on supply chain resilience. Consequently, companies like Foxconn, Quanta, and Wistron are establishing operations across Southeast Asia, Japan, and Europe.
China’s economic slowdown has further spurred this migration, with companies like C Sun exploring expansion into Thailand, Malaysia, and Japan to escape the competitive pressures and look for new growth avenues. C Sun, a provider of equipment for chip packaging and circuit board manufacturing, is adapting to these market changes by targeting advanced packaging technologies, which promise better profit margins. Similarly, Topco Scientific, a supplier of materials for chip manufacturing, is broadening its reach to Southeast Asia and Europe, using Singapore as a hub for regional operations. The company has also established a presence in Japan and is planning to expand into Europe, responding to the increasing demand for semiconductor production resources.
This trend of geographic diversification reflects a broader shift in the tech industry’s supply chain strategy, with Taiwanese companies adapting to the changing landscape of global demand, regulatory environments, and market opportunities. The transition from local markets to international arenas signifies a strategic reorientation towards more diversified and resilient supply chains, setting a new course for the Taiwanese tech sector’s global engagement.
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