Government contemplating foreign technology industrial estates
Taiwan's leading firms are expanding their operations overseas, but these expansions are not industrial relocations, according to recent statements. Instead, they represent extensions of firms' capacity and capabilities.
In a related development, last week and on Monday, incidents cut 2.1 gigawatts of power generation. State-run Taiwan Power Co (Taipower) has taken measures to ensure the power grid's stability. Taipower chairman Tseng Wen-sheng stated that the reserve margin would be kept above 6 percent during peak nighttime hours through the end of this month after the deployment of backup units. The reserve margin should exceed 10 percent during the day, and Taipower aims to keep it above 6 percent at night. A new generator at Hsinta Power Plant is expected to resume operation next month, further stabilizing the power supply. Pressure remains on the power grid due to scheduled repair and maintenance of major generators.
In the realm of technology, Taiwanese chipmakers have already started investing in the US before tariff talks between Taipei and Washington. Semiconductor leader TSMC has committed to investing an additional $100 billion in chip factories in Arizona, and Hitachi announced a historic $1 billion investment in manufacturing critical grid infrastructure in the U.S., including a $457 million facility in Virginia. These investments aim to secure operational safety ahead of tariff negotiations.
The Ministry of Economic Affairs is actively supporting these expansions overseas. Minister Kung Ming-hsin contacted the Taiwan Electrical and Electronic Manufacturers' Association to explore ways to support the proposal for technology parks in Mexico, Poland, India, and the Philippines. The Ministry would assist local manufacturers in establishing operations in these countries.
The Ministry has also set up trading centers in the Czech Republic, Japan, the US, and other markets to help local manufacturers deploy strategically. In addition, the Ministry would help Taiwanese manufacturers secure orders from non-US markets to counter high US tariffs.
The robust demand for artificial intelligence products, high-end servers, and investments in related technologies by Taiwanese firms, along with government policy support for silicon photonics, quantum computing, and robotics, would benefit Taiwanese industries. Minister Kung downplayed concerns that local manufacturers' expansions overseas would reduce their operations in Taiwan.
Opportunities for Taiwanese manufacturers exist in Europe, Japan, India, and South Asia. As the global market continues to evolve, Taiwanese industries are positioning themselves to capitalise on these opportunities while maintaining a strong presence in their home country.
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