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Taiwan’s ICT Manufacturers Move Supply Chains Out of China to Soften the Impact of the Trade War: MIC
September 18, 2019


Taipei-based government-backed IT research institute MIC (Market Intelligence& Consulting Institute) of III (Institute for Information Industry) held a press conference on September 18, 2019, prior to the upcoming MIC Forum on September 25-27, to present our findings on the impact of the US-China trade war on the ICT industry. “We have been keeping a close eye on the development of the US-China trade war and how the global IT supply chains have done to ease the impact,” says Chris Hung, Deputy General Director with MIC. 

Total Product Value of the US-China Trade War Tariff List


Source: MIC, September 2019

"Currently 90% of Taiwan’s ICT products are made in China and 30% of which, equivalent to US$ 10 trillion, are exported to the United States. Therefore, when US tariffs on China products become effective, Taiwan’s major ICT companies including Quanta, Compal, Wistron, Inventec, Pegatron, Foxconn, Micro-Star, Gigabyte Technology, and Elitegroup have no choice but to shift their high-end production lines back to Taiwan and/or to the United States. While they are mostly likely to migrate their assembly lines to Mexico, Brazil, and East Europe, the rest of their production lines are moved to Southeast Asia instead. For instance, Compal and Foxconn have both moved their production lines to Vietnam, Wistron to the Philippines, Pegatron to Indonesia, Foxconn and Wistron both to India, and Foxconn and Compal to Brazil.”


To see more about this topic, please visit:  The Impact of China-US Trade Fight and Huawei and ZTE Bans on the Global Communications Equipment Supply Chain, Development of US-China Trade Conflicts After Trump-Xi Meeting At G20, The Impact of US-China Trade War Developments on the Taiwanese Communications Industry

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About MIC

Market Intelligence & Consulting Institute (MIC), based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry.