SpaceX has recently requested its Taiwanese suppliers shift manufacturing out of Taiwan, citing mounting geopolitical concerns in the region. This move mirrors an earlier request made by one of Elon Musk’s other companies, Tesla, for its suppliers to move production from Taiwan and China.
According to a report from Reuters, SpaceX’s request to its suppliers has led several Taiwanese companies, especially those providing satellite and internet-related components for Starlink, to begin relocating their production facilities outside of the country. Companies like Chin-Poon Industrial, which produces satellite components, confirmed the request from SpaceX, but did not say whether they will alter their production plans.
Another company, Wistron NeWeb Corporation, has already started producing routers and other network gear for Starlink Vietnam.
The request by SpaceX was made amid rising geopolitical tensions with China. China’s escalating military presence around Taiwan, including recent war games simulating a blockade of the country, has heightened concerns about the stability of supply chains in the region.
Taiwan’s Ministry of Economic Affairs has downplayed the implications of SpaceX’s request, stating that short-term political issues should not impact Taiwan’s partnerships with global satellite companies.
In May, Tesla urged its suppliers to move production out of both China and Taiwan for critical components like printed circuit boards and displays. According to sources within Tesla’s supply chain, the company has engaged with suppliers in Japan and South Korea as potential alternatives to China and Taiwan.
