SpaceX asks Taiwanese partners to relocate amid rising tensions

SpaceX, the aerospace company founded by Elon Musk, is urging its Taiwanese suppliers to relocate manufacturing operations off the island due to rising geopolitical tensions between China and Taiwan. This shift, aimed at reducing risk amid China’s increased military drills around Taiwan, has led some suppliers to transfer parts of their production to countries such as Vietnam and Thailand. Notable Taiwanese companies, including Chin-Poon Industrial and Wistron NeWeb Corporation (WNC), confirmed that SpaceX requested they move production, citing geopolitical concerns.

In response, WNC has already started producing network equipment for SpaceX’s Starlink project in Vietnam, with plans to double its workforce there. Similarly, Universal Microwave Technology has expanded in Southeast Asia, investing in new factories in Vietnam and Thailand, while Shenmao Technology is establishing a $5 million unit in Vietnam. These shifts align with Taiwanese tech companies’ broader efforts to diversify their operations outside Taiwan, aiming to insulate their supply chains from potential disruptions.

SpaceX’s approach underscores Musk’s complicated relationship with Taiwan, heightened after his comments last year calling Taiwan an “integral part” of China, which sparked backlash from the Taiwanese government. The company’s interest in building a manufacturing hub in Vietnam reflects an increasing trend of high-tech industries seeking stability amid geopolitical tensions, with Southeast Asia emerging as a crucial alternative for production.