SpaceX sparks Taiwanese anger over supplier relocation request

The request made by Elon Musk’s aerospace company SpaceX for its Taiwanese suppliers to relocate manufacturing operations to other countries due to “geopolitical concerns” has sparked anger and accusations of ingratitude in Taiwan. Suppliers have since reportedly shifted operations to Vietnam, Thailand and elsewhere.

Controversial move: Taiwan’s Economic Affairs Minister JW Kuo acknowledged the government is closely monitoring the situation, noting that short-term political factors should not disrupt the relationship between international companies like SpaceX and Taiwanese manufacturers. One supplier, Chin-Poon Industrial, confirmed that it was asked to move manufacturing to Thailand due to geopolitical considerations. Other suppliers, including Wistron NeWeb Corporation (WNC) and Universal Microwave Technology, have expanded into Vietnam this year, citing similar concerns.
Suppliers feel betrayed: The request has reignited tensions surrounding Musk‘s relationship with Taiwan. In 2022, Musk stated his belief that a conflict over Taiwan was “inevitable” and suggested Taiwan consider a Hong Kong-style governance model, a proposal widely rejected by the Taiwanese people. Social media platforms in Taiwan have seen an outpouring of anger as a result of the supplier relocation request, with users criticizing Musk for what they perceive as a betrayal of Taiwanese suppliers who have contributed to SpaceX’s success.

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