MOEA disputes reports SpaceX pressured suppliers to move out of Taiwan

Taipei, Nov. 11 (CNA) The Ministry of Economic Affairs (MOEA) on Monday disputed reports that suppliers to U.S.-based space technology company SpaceX had been asked to move production out of Taiwan.

On Nov. 5, a Reuters report said SpaceX, owned by American business tycoon Elon Musk, has asked their manufacturers to produce outside of Taiwan in the wake of geopolitical risks, adding at least one Taiwanese supplier has been pushed to relocate production to Vietnam.

According to Reuters, SpaceX's requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said in 2023 Taiwan is an "integral part" of China, sparking sharp criticism from the Taiwanese authorities.

In a statement, the MOEA said that it had contacted the Taiwanese suppliers cited in the Reuters report and found that none of them had received a request from SpaceX to move production out of Taiwan.

The ministry added that Taiwanese suppliers provide their services to their global clients and often adjust their production to meet clients' needs, but so far they have not been asked by SpaceX to move their production overseas.

"Taiwan is capable of developing on its own ground receiving equipment related for satellite use, and its manufacturers are highly competitive," the MOEA said.

"The ministry is not aware of any production relocation of these firm [and] has faith that any short-term political factors will not affect their ties with international satellite companies," the ministry added.

Faced with growing trade tensions between the United States and China, escalating geopolitical unease and a global trend of decoupling with China economically, the MOEA said, many Taiwanese suppliers have diversified their production in the global market and have become very flexible to take on any changes.

According to the MOEA, a total of 46 Taiwanese component makers have entered the global satellite supply chain covering a wide range of products such as raw material components, printed circuit boards (PCBs), wires and cables and power management solutions.

In addition to SpaceX, the MOEA said, Taiwanese suppliers which are able to integrate their sources to develop high, medium and low earth orbit satellite services also cater to other international clients including telecom operators and satellite equipment suppliers.

The MOEA said Taiwan's electronics and information communication industries, in particular in the semiconductor business, become an indispensable part of the global supplier chain.

While the local electronics component industry has continued to strengthen production and upgrade technologies on its own to lay a good foundation in the satellite business, the MOEA said, since 2021, the government has also provided necessary assistance to about 30 companies to develop various satellite ground equipment products for household, automotive, marine and air transportation use to build good connections with the global supply chain.