Taiwan Supports Companies Relocating to US Amidst Tariffs
Taipei, Taiwan - Taiwan's economy ministry announced plans to assist companies aiming to relocate to the United States, including providing partnership connections. This support comes in response to the recently imposed tariffs by US President Donald Trump.
Assistance Measures
* Providing information on potential US investment locations
* Outlining local laws and regulations
* Facilitating partnerships
The ministry will further enhance research and development collaboration between Taiwanese and US companies through its Industrial Technology Research Institute branches in North America.
Focus on Technology
Taiwan's vulnerability stems from its significant chip and electronics production. The government aims to mitigate the impact of tariffs by supporting firms operating in both Mexico and China.
Investment in United States
TSMC, a major chipmaker, has committed to a $65 billion investment in Arizona, affirming Taiwan's marquee investment in the United States.
Market Impacts
Shares of Taiwanese tech companies with operations in Mexico experienced significant declines following the announcement of tariffs. Foxconn, Quanta, and Inventec faced drops of 8.1%, 9.8%, and 6.7%, respectively. The Taiwan benchmark index closed down 3.5%.
Taiwan's Strategy
Taiwan also seeks to encourage its companies to diversify away from China. President Lai Ching-te emphasized support for firms choosing to invest in Taiwan, citing favorable policies, stable interest rates, and controlled foreign exchange rates and inflation.