US firms in Taiwan fight geopolitical, supply-chain risks by picking local partners as investments grow: AmCham head
- Investments in Taiwan from the United States reached US$932 million last year, up from US$398 million in 2022 and hitting highest single-year total since 2008
- American co-ownership in Taiwanese companies seen helping to ‘extend production lines and manufacturability’ for those firms to the United States
American businesses in Taiwan are buffering against global supply-chain shifts and geopolitical hazards by building partnerships with local tech firms, and overall US investments on the island are growing, according to the Taipei-based American Chamber of Commerce.
Companies with US headquarters are tapping Taiwanese partners to “diversify” supply chains and to “reduce dependence on a single source or region”, AmCham Taiwan President Patrick Lin has told the Post.
Taiwan, a global source of hi-tech gear, has become snagged over the past few years between mainland China and the United States – both major buyers of its exports – as the two powers bicker over supply-chain decoupling.
“American companies may be forming strategic partnerships with Taiwanese suppliers and manufacturers to secure a stable supply of critical components,” Lin said. “Developing strong relationships with Taiwanese firms can help navigate potential disruptions in the global supply chain.”
Those disruptions, he said, have arisen from the Covid-19 pandemic and “geopolitical tensions”.
