SpaceX's Taiwan exit: Geopolitical tensions spark supplier shift
Elon Musk's company, SpaceX, has asked its suppliers in Taiwan to move their operations to another country. One of the world's richest people is reportedly worried about the geopolitical situation surrounding the island. Chinese leader Xi Jinping wants to "unify" Taiwan with the Middle Kingdom.
According to Reuters, SpaceX has asked some Taiwanese companies to relocate their headquarters to Vietnam or Thailand. The British "Guardian" reminds us that 46 entities operate in Taiwan, producing components and equipment for the satellite industry. About 10 of them directly supply SpaceX.
Chin-Poon Industrial, which collaborates with Musk's space business, confirmed that SpaceX contacted them. Two other entities—Wistron NeWeb Corporation (WNC) and Universal Microwave Technology—have already expanded their network to Vietnam.
The "Guardian" notes that in 2022, Elon Musk mentioned in an interview with the "Financial Times" that a conflict over Taiwan is "inevitable." Also, two years ago, Musk stated that Taiwan is an integral part of China. These comments carry even more weight after Donald Trump's victory, as the billionaire is expected to play a role in the new White House administration. During the election night, Trump said that Musk is a "star" of the MAGA—Make America Great Again—movement.
Taiwan responds to Musk
The billionaire's actions did not sit well with Taiwanese politicians. Economy Minister JW Kuo noted that the industry "is doing well, is strong and should manage." He added that the government is monitoring the situation related to the potential relocation of the supply chain outside Taiwan.
Kuo assessed that short-term political factors should not affect the supply chain relations between international satellite companies and Taiwanese manufacturers.
Wistron NeWeb Corporation told the Guardian that while operating in Taiwan, one should consider geopolitical risks, but the most important thing is meeting customers' needs. Musk's actions have angered some citizens, who are calling for a boycott of Tesla. In the past two years, Tesla has ranked among the top ten best-selling cars in Taiwan.
Chinese leader Xi Jinping has been speaking for years about "unifying" Taiwan, and Donald Trump has announced that if China moves into Taiwan, the USA will impose tariffs of 150-200% on Chinese exports. Regardless of whether there would be an attack on Taiwan, Trump also promised that Chinese goods imported into America would be subject to a 60% tariff.
