SpaceX has requested that its suppliers in Taiwan shift production off the island, Reuters reported, citing corporate documents and anonymous sources connected to the equipment manufacturers.
The aerospace company reportedly asked one satellite parts maker, Chin-Poon Industrial, to relocate manufacturing to Thailand for new orders, referencing “geopolitical considerations.”
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China and Taiwan remain in a geopolitical dispute regarding Taiwan’s political status. China sees the self-governed island as part of its territory, while Taiwan opposes the sovereignty claims. However, over the past five years, China has conducted frequent military drills around Taiwan and has not ruled out taking control of the island.
Despite the ongoing tension, Taiwan’s economy ministry told Reuters that “short-term political factors” should not disrupt supply chain relationships between international companies and Taiwanese manufacturers.
According to Reuters, SpaceX uses nearly a dozen Taiwanese suppliers. However, Vietnam’s government said in September that the company wanted to spend $1.5 billion in the country but did not provide additional details regarding timing and investment purposes.
Reuters reported that SpaceX representatives consulted a Vietnamese investment adviser last year and expressed interest in establishing a satellite equipment manufacturing hub in Vietnam.
One contractor and two plant workers said that Taiwanese supplier Wistron NeWeb Corporation started making Starlink network gear at a factory in northern Vietnam this year. One of the workers told Reuters that SpaceX’s orders largely influenced the company’s expansion.
Reuters also reported that Universal Microwave Technology, another SpaceX supplier, recently invested in a Vietnamese factory. The company did not comment on individual customers but stated that overseas production would ease its customers’ doubt about “geographical risks.”
Taiwan’s satellite industry includes approximately 50 companies that produce sensitive components and ground equipment. Last year, the island’s government estimated that the sector’s output surpassed $6.23 billion.
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