Taiwan denies reports that SpaceX urged suppliers to relocate over geopolitical risks
- by Taiwan News
- Nov 11, 2024
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SpaceX Falcon Heavy rocket. (Reuters, Joe Skipper photo)
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TAIPEI (Taiwan News) — Taiwan’s Ministry of Economic Affairs (MOEA) denied reports on Monday (Nov. 11) that Taiwanese suppliers had been asked by SpaceX to move production abroad due to geopolitical risks.
Reports surfaced on Nov. 5, alleging that SpaceX requested component suppliers for its Starlink satellite internet to shift production away from Taiwan. The report claimed that, following SpaceX's orders, some Taiwanese manufacturers had started relocating parts of their supply chains to Southeast Asia, including Vietnam and Thailand.
Reuters, which broke the story, highlighted SpaceX CEO Elon Musk’s strained relations with Taiwan, noting his statement last year that Taiwan is an "integral part" of China.
However, in a press release, the MOEA disputed these claims, stating that no suppliers had received requests from SpaceX to move production from Taiwan. The ministry said it contacted the suppliers mentioned in the report and confirmed that none were planning to relocate overseas.
According to MOEA, Taiwanese suppliers have responded to shifting geopolitical dynamics, US-China competition, and global economic decoupling by diversifying supply chains across multiple countries. Taiwan possesses independent research and development capabilities in satellite ground receiving equipment, and its manufacturers remain highly competitive, the MOEA said.
The ministry expressed confidence that “any short-term political factors will not affect their ties with international satellite companies.”
Forty-six Taiwanese satellite component manufacturers contribute to the global supply chain by producing raw materials, printed circuit boards (PCBs), wire and cable management systems, and power management solutions. Taiwan’s information and communications technology sectors, especially the semiconductor industry, are now essential to global supply networks, the MOEA added.
The ministry further noted that Taiwanese suppliers have developed satellite services across high, medium, and low earth orbits, serving international clients beyond SpaceX, including telecom operators and satellite equipment providers. Since 2021, the government has supported around 30 companies in R&D to develop satellite ground equipment for household, automotive, marine, and aviation products, facilitating their integration into the global supply chain.
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