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[News] SpaceX Reportedly Urges Taiwan Suppliers to Relocate; Ministry Assures Supply Chain Stability


2024-11-06 Emerging Technologies editor

SpaceX is reportedly urging Taiwanese suppliers to relocate production lines overseas due to geopolitical concerns. Citing Taiwan’s Ministry of Economic Affairs, CNA reported that 46 Taiwanese companies have already joined the global space supply chain this year. Taiwan has demonstrated competitive, self-sustained capabilities in satellite ground reception equipment development and manufacturing, and short-term political factors are unlikely to disrupt collaborations between international satellite companies and Taiwanese suppliers.

According to Reuters, citing industry sources and company documents, Elon Musk’s SpaceX has requested Taiwanese suppliers to shift production overseas, leading some companies to relocate parts of their supply chains, with at least one supplier moving production to Vietnam.

In response, Taiwan’s Ministry of Economic Affairs stated that, beyond SpaceX’s satellite communication services, other global satellite operators remain active. The international satellite communications trend now leans toward multi-orbit integration, combining GEO, MEO and LEO satellites to enhance communication resilience.

On components, the ministry highlighted that 46 Taiwanese companies have entered the global space supply chain this year. Additionally, through thematic R&D initiatives, the ministry supported 30 companies across 17 projects in developing integrated satellite ground reception equipment for diverse applications, including household, automotive, marine, and aviation use.

Overall, Taiwan’s Ministry of Economic Affairs is confident that Taiwan has developed independent R&D and manufacturing capabilities in satellite ground reception equipment. Taiwan’s manufacturing capacity is competitive, and short-term political factors are unlikely to affect supply chain partnerships between international satellite companies and Taiwanese suppliers.

(Photo credit: SpaceX)

Please note that this article cites information from Reuters and CNA.

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