Taiwan’s tech industry not ‘hollowing out’ as chips head to US, AmCham says, but exports offer weak support
- AmCham Taiwan’s annual white paper says concerns are ‘misplaced’ about investment shifting to the US
- A ninth straight month of declining exports saw shipments of Taiwanese electronics fall by almost 10 per cent in May, year on year
Fears that Taiwan’s industry will hollow out if investment shifts to the US are “misplaced” because major companies are likely to keep their research, development and most advanced production on the island, the American Chamber of Commerce in Taiwan said on Wednesday.
But a ninth straight month of declining exports points to a slog for hi-tech hardware companies – the backbone of the island’s economy since the 1980s.
Tech giants, led by Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chip maker and keeper of its most advanced technology, have been edging into the United States over the past half-decade to satisfy US government demands that suppliers locate closer to their clients and stimulate the American economy.
“Concern in some quarters that tech-sector investment in the US will cause a ‘hollowing out’ of Taiwan industry is misplaced,” the 529-member AmCham said in its “2023 Taiwan White Paper”.
“TSMC and others are certain to maintain their core R&D and most technologically advanced production at home, while investment overseas will serve to assure their continued strong position in the global supply chain and even closer relations with customers,” the paper says.