As the global supply chain landscape undergoes significant transformations, Taiwanese tech companies are increasingly looking beyond their home market. This trend extends beyond giants like Taiwan Semiconductor Manufacturing Co and Foxconn to include suppliers of chip components, electronics tools, materials, and facility builders.
The shift in supply chains is driven by the expanding operations of top clients and the need for supply chain resilience. Ming-Kuen Lai, general manager of a facility builder, Acter, noted a 50% surge in their southeast Asian business last year, outperforming their core markets in Taiwan and China. Particularly, countries like Thailand, Vietnam, and Malaysia have witnessed notable growth in electronics assembly and semiconductor packaging.
However, expanding into these markets comes with its challenges. Operating in Southeast Asia demands more effort and patience due to its diverse cultures and languages, as highlighted by Lai.
Despite the complexities, Taiwanese investments in Thailand, Vietnam, and Malaysia surged by 146% in 2023, reflecting a growing focus on diversification away from traditional manufacturing hubs like China. China’s lukewarm economy and increasing competition have further incentivized Taiwanese suppliers to explore new markets.
Chip equipment maker C Sun and chip material supplier Topco Scientific are among those eyeing expansion in Southeast Asia and Europe. C Sun sees better profit potential in advanced chip packaging equipment, while Topco Scientific identifies growing demand for chip materials in emerging semiconductor hubs like Prague.
The trend of Taiwanese companies venturing overseas is expected to continue, driven by the need to stay competitive and resilient amid evolving market dynamics. Despite the challenges, the long-term commitment to diversification promises significant rewards for Taiwanese tech firms.
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