Taiwanese Businessman Urges Diversification in Face of Global Risk

Taiwanese Businessman Urges Diversification in Face of Global Risk

Shift in Geopolitical Landscape Calls for a Reevaluation

Pegatron Corporation’s Chair, Tung Tzu-hsien, has advocated for a thorough reevaluation of the relationship between Taiwan’s technology sector and the rapidly changing geopolitical environment. By diversifying the locations of its factories and establishing new ones in Mexico, India, Indonesia, and Vietnam, Tung has successfully managed to lessen the political risk for his electronics company. This strategic move has resulted in creating over 30,000 job opportunities in these regions.

Taiwan’s Tech Industry against Tense Proximity to China

For years, Taiwan’s proximity to China, a mere 200 kilometers distance, has been a cause for tension. Two decades ago, the implications of international political shifts were less concerning for Taiwan due to its ability to promote its service sector on a global scale. However, in the current climate, Taiwan has become a hotspot for geopolitical change, requiring a more in-depth examination of its export capabilities.

Striking a Balance: Electronics Industry and Geopolitical Environment

According to Tung, it is crucial for Taiwan to balance its electronics industry with the geopolitical environment carefully. Despite the rising prominence of Southeast Asia, he pointed out that China still holds a key position as a market with a well-established supply chain. India, on the other hand, has its central and local governments’ policies that still need to be harmonized. Mexico’s geographical proximity to the United States and Latin America enhances its significance in the electronics sector.

The Need for Diversification in Production Locations

Tung emphasizes that Taiwan must review the link between its tech industry and global politics to ensure its continued success in the export market. He underscores the importance of diversifying production locations to minimize political risks. Tung also highlights the significance of various markets, including China, India, and Mexico. The importance of these markets remains critical, and understanding their role and potential can be key to navigating geopolitical tensions.