Taiwan

Intelligence for Better Decision Making

Foxconn Expands Global Manufacturing with Major Investments in India and Vietnam
April 3, 2025 | Indirect Indicator

Foxconn is expanding its manufacturing operations in India and Vietnam, investing heavily to support new production capabilities for Apple products and AI servers.

**In India, a Foxconn subsidiary acquired machinery from Apple valued at approximately US$32.258 million (around NT$1.072 billion) to meet operational needs.**
The Hyderabad factory will begin producing Apple AirPods by April, marking the second Apple product manufactured in India after the iPhone.

**In Vietnam, Foxconn’s subsidiary Ingrasys increased its investment in Fulian Precision Technology Component by US$23.4 million (approximately NT$778 million), following a previous investment of about US$17.961 million (approximately NT$592 million) in March.**
Established in January 2023 with a capital of US$200 million, Fulian specializes in producing electronic components, motherboards, servers, and communication equipment. Foxconn’s strategy involves flexible adjustments to production across multiple locations, including Taiwan, the United States, Mexico, and Vietnam, to respond to global demands.
TSMC Inaugurates Landmark 2nm Semiconductor Facility in Kaohsiung
April 2, 2025 | Indirect Indicator

TSMC's expansion in Kaohsiung marks a major development in advanced semiconductor manufacturing.

**TSMC recently inaugurated a 2nm production expansion facility at Nanzih Science Park in Kaohsiung, centering its efforts around the Fab 22 complex.**
The company has invested more than NT$1.5 trillion in a project that will progress in multiple phases, ultimately forming one of the world's largest advanced process wafer manufacturing clusters. The facility, which spans an area equivalent to over 46 football fields, features a vast clean room area that is twice the size of that in a standard logic fab.

**Taiwanese government officials, including Kaohsiung Mayor Chen Chi-mai and Premier Toh Jung-tai, attended the ceremony, demonstrating strong local commitment and support for the semiconductor industry in the southern region.**
Their remarks indicated that the facility will facilitate the return of local talent and enhance industrial competitiveness as part of the broader Greater Southern New Silicon Valley initiative. Collaborative government efforts have promoted balanced regional development by integrating cities such as Chiayi, Tainan, Kaohsiung, and Pingtung, thereby strengthening Taiwan's semiconductor ecosystem.

**The new Kaohsiung facility is set to begin mass production of 2nm chips in the second half of 2025.**
TSMC anticipates that the advanced process will offer enhanced transistor density, speed improvements of 10-15 percent over the 3nm process, and power consumption reductions of 25-30 percent. Within the first two years of mass production, the company expects the number of finalized designs for the 2nm process to exceed those for the 3nm process, addressing growing global market demand for cutting-edge semiconductor technology. These advanced production capabilities are projected to drive substantial economic output, with an estimated annual contribution of NT$3 trillion in output value and support for nearly 500,000 jobs across Taiwan through supply chain effects.

**The investment in Kaohsiung also creates over 7,000 high-tech jobs and more than 20,000 construction roles, marking an important step in Taiwan's industrial transformation.**
TSMC will integrate the 2nm technology into applications such as supercomputers, mobile devices, and cloud data centers, with a projected global product value of approximately US$2.5 trillion within five years of launch. The project places an emphasis on sustainability as the facility is designed to meet Taiwan's Green Building EEWH and the US Green Building LEED certification standards, incorporating initiatives for renewable energy and recycled water.

Monitored Intelligence for Taiwan - April 3, 2025


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呂紹煒專欄:從二級制裁到「二級關稅」,恣意而為的美國

Lu Shaowei's column: From secondary sanctions to "secondary tariffs", the United States acts arbitrarily

The Storm Media | Local Language | News | April 3, 2025 | Shifting Geopolitical Alliances

The article introduces the concept of "secondary tariffs," a term recently adopted by the Trump administration to extend economic pressure on countries buying oil from sanctioned nations like Venezuela and Russia. Trump announced plans to impose a 25% tariff on nations purchasing Venezuelan oil, escalating this to a potential 50% for those dealing in Russian oil if ceasefire negotiations do not progress. Such tariffs aim to economically isolate these countries and discourage other nations from engaging in trade with them.

The term "secondary tariff" is rooted in existing "secondary sanctions," which extend the reach of U.S. laws to foreign entities and individuals dealing with sanctioned countries. Unlike primary sanctions, which only affect entities within the sanctioning country, secondary sanctions can penalize international participants, drawing criticism for infringing on sovereign rights. The U.S. has increasingly utilized these sanctions, creating a situation where it acts as a global enforcer of its policies, which some refer to as "long-arm jurisdiction."

Trump’s introduction of "secondary tariffs" combines tariffs—a favored tool of his administration—with the existing framework of sanctions, potentially broadening the implications of the tariff war. The effectiveness of these tariffs remains uncertain, but they may significantly deter countries like China and India from purchasing oil from sanctioned nations, especially given the large economic barter they face if tariffs were implemented. The article suggests that these tariffs could compel such nations to reconsider their trading choices given the substantial financial stakes involved.

【即時短評】中美夾殺戰略困局 賴政府如何安民心?

[Instant Comment] How can the Lai government reassure the people in the strategic dilemma of China and the United States?

United Daily News | Local Language | News | April 3, 2025 | Geopolitical Conflict and Disputes

The Chinese Communist Party has conducted military exercises around Taiwan over two consecutive days, aimed at testing the U.S. strategic stance towards Taiwan and the Indo-Pacific region, particularly in response to Taiwan's "Seventeen Points of Lai." These exercises include a significant military presence around not only Taiwan but also in regions encompassing Japan, South Korea, the Philippines, and Australia. The exercises reflect a new normal for China's military operations in the Indo-Pacific and serve as intimidation tactics against Taiwan.

In the face of sustained economic, political, and military pressures from both the United States and China, the Lai government in Taiwan is urged to develop a comprehensive strategy to reassure its citizens. Following Lai's announcement of measures aimed at countering China's efforts, the People's Liberation Army (PLA) launched a series of military exercises, including "Strait Thunder-2025A," signaling a clear warning against "Taiwan independence" movements. These military drills are not only aimed at Taiwan but also serve to test the limits of U.S. tolerance in the region.

Moreover, the impending announcement of "reciprocal tariffs" by U.S. President Trump poses additional challenges for Taiwan, especially as the U.S. Trade Representative's recent report highlighted trade restrictions imposed by Taiwan on U.S. goods. This highlights the strain in Taiwan's cross-strait relations and Taiwan-U.S. relations. As both the U.S. and China prepare for potential discussions, Taiwan finds itself in a precarious position between these superpowers, facing threats across political, military, and economic domains. There is an urgent need for the Lai government to go beyond mere rhetoric and formulate concrete responses to the ongoing pressures.

川普關稅戰略全面升級:「在美國生產就免關稅」政策即將出爐

Trump's tariff strategy is fully upgraded: the "tariff-free production in the United States" policy is about to be released

The Storm Media | Local Language | News | April 3, 2025 | Regulation

US President Donald Trump is set to unveil significant tariff reforms on April 2, coinciding with a press conference in the White House Rose Garden themed "Make America Wealthy Again." The new policy, dubbed "Liberation Day," emphasizes promoting production in the United States by encouraging foreign companies to establish factories domestically. This initiative aims to eliminate import tariffs that could reach substantial percentages, as articulated by White House press secretary Caroline Karoline Leavitt, who highlighted that foreign firms could avoid these tariffs by creating jobs in the US.

Current proposals under consideration include a flat 20% tariff on all imports, which could generate over $6 trillion in revenue. An alternative is a reciprocal tariff model targeting countries that impose trade barriers against US goods, while countries with trade agreements with the US would remain unaffected. A "compromise plan" involving differentiated tariff rates for various nations is also being discussed, with Taiwan identified as a key target. Trump's administration is weighing these options against each country's trade surplus and overall strategic importance to the US.

In anticipation of the new tariff policy, Trump reported signs of shifting foreign investment, citing that several auto factories planned for other countries are now relocating to the US. As tensions rise, China and the European Union are preparing countermeasures against recent US tariffs, including a 25% tariff on imported cars set to take effect shortly. With "Liberation Day" approaching, global markets are closely monitoring these developments, which are expected to significantly alter the landscape of international trade and supply chains.

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