AVOIDING TARIFFS: While 52 firms have already pledged to invest in Taiwan, business leaders were concerned about shortages of land, electricity, water and unskilled labor
Date: May 16, 2019
By: Crystal Hsu / Staff reporter
It is difficult for Taiwanese electronics firms to pull out of China, as the personal
computer industry has built a stable supply chain there over the years, industry leaders said yesterday.
Local electronic firms with production lines in China could face a sharp earnings challenge if Washington next month extends tariffs to US$300 billion of Chinese goods, including smartphones and notebooks.
Compal Electronics Inc (仁寶電腦) chairman Rock Hsu (許勝雄) said that relocating supply chains is a difficult and time-consuming process, as it requires a massive transfer of personnel and depends a lot on technology brands.
Taiwan is home to the world’s largest suppliers of electronic components used in laptops and mobile devices. [FULL STORY]