Taiwan

Intelligence for Better Decision Making

Taiwan's Strategic Moves in the Global Semiconductor Race
Dec. 20, 2024 | Indirect Indicator

Amidst the rapid evolution of the global semiconductor market, Taiwan is making strategic moves to fortify its position through the "Chip Taiwan Team" initiative launched by the National Science Council.

The plan aims to enhance Taiwan's semiconductor industry by focusing on domestic production for applications such as drones, robots, and space technology. Wu Chengwen of the Executive Yuan has announced that further details regarding chips essential for AI and other sectors will be disclosed in the near future. Currently, Taiwan’s semiconductor industry predominantly serves foreign markets, with expertise in IC design, wafer manufacturing, and packaging. Wu emphasized the critical need to develop a domestic supply chain to meet local demands and reduce reliance on imports, especially in AI and communications technologies.

This initiative is part of a broader strategy to increase production capacity for innovative products, establishing a local supply chain that bolsters Taiwan's economic resilience. The plan aims to elevate Taiwan's presence in the global market, aligning supply chains with democratic nations and moving away from the so-called "red supply chains." Announcements regarding participating companies are expected soon.

In the United States, as President Biden's term nears its conclusion, his administration is pressing for the completion of the CHIPS and Science Act funding, a significant $280 billion allocation for US semiconductor manufacturing. This presents a major opportunity for Taiwan Semiconductor Manufacturing Company (TSMC) to benefit from grants and loans for new operational facilities in Arizona. Nevertheless, with President-elect Trump signaling intentions to reassess the Act's structure, the future of this funding remains uncertain. Meanwhile, as South Korea, Japan, and China advance their semiconductor agendas, the geopolitical climate in East Asia grows more complex, creating a challenging arena for regional leaders striving to maintain stability amidst these uncertainties.
US Investigation Spurs Rise in Netcom Stocks Amid TP-Link and Semiconductor Scrutiny
Dec. 20, 2024 | Indirect Indicator

The Biden administration is contemplating a ban on TP-Link, a prominent Chinese technology company, amid concerns that its network routers may be linked to cyber attacks posing national security threats.

This potential ban, expected to be possibly announced by early 2025, has led to calls for investigations by Congress and involves federal agencies such as the Departments of Commerce, Defense, and Justice. The US Cybersecurity and Infrastructure Agency has detected vulnerabilities in TP-Link routers that could enable remote code attacks. Additionally, Microsoft has identified a hacking campaign, "Volt Typhoon," allegedly connected to the Chinese government, which leverages TP-Link routers to target US think tanks and government agencies. In response, a Chinese Embassy spokesperson has criticized the US actions as an unjustified pretext for targeting Chinese firms.

With a headquarters in Shenzhen, TP-Link holds about 65% of the US market for home and small business routers. Its popular products, the AX3000 and AX1800 models, are frequently purchased on Amazon. Established in 1996 by Zhao Jianjun and Zhao Jiaxing, TP-Link has operations in both China and the US

Simultaneously, the Biden administration is scrutinizing Chinese semiconductor imports to mitigate reliance on technology deemed a national security risk. This examination could lead to tariffs or import restrictions on older semiconductors and related products, including medical devices, vehicles, smartphones, and weaponry. Conducted under Section 301, this investigation could influence the policies of a future Trump administration. It aligns with broader efforts to bolster the US semiconductor industry amid worries about China's trade practices. Previous legislation under the Biden administration promoting domestic semiconductor manufacturing aimed to reduce dependency on Chinese imports. Although there are existing restrictions on advanced semiconductors, China's ability to produce older models competitively at lower costs has raised concerns about market stability. Plans are underway to increase tariffs on these legacy semiconductors from 25 to 50 percent within the next year, with additional measures being considered to protect the US market and promote domestic production.

A potential ban on TP-Link could create opportunities for other networking brands, particularly Taiwanese companies like Zyxel, D-Link, and ASUS, which are poised to fill the market void. In anticipation of this ban, Netcom stocks have risen, with notable price increases for companies like D-X, Zhonglei, and Qiqi, suggesting expectations of Taiwanese brands benefitting from TP-Link's diminished market role. Taiwanese manufacturers, such as Zyxel and ASUS, stand to benefit directly, while the OEM sector may also experience growth. Historically, Taiwanese Netcom companies have successfully adapted to challenges, expanding into markets like Europe, the US, and India during the 2018 trade war. Nonetheless, demand for high-end Chinese Wi-Fi products may remain limited in China due to consumer preferences and frequency bandwidth restrictions.

Monitored Intelligence for Taiwan - Dec. 20, 2024


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市府多元推動住宅政策 擴大溪北地區服務量能

The city government promotes housing policies in multiple ways to expand service capacity in the Xibei area

Tainan City | Local Language | CityState | Dec. 20, 2024 | UndeterminedReal Estate

The Tainan City Government is advancing housing policies in the Xibei area to meet public housing needs and ensure stable support for youth and disadvantaged groups. This initiative, a part of the "Trilogy of Housing Justice," emphasizes rent-oriented social housing policies to boost housing security and aligns with national objectives for social housing exclusively for rent.

The "Social Housing Construction Plan" approved by the Executive Yuan aims for 7,000 housing units in Tainan City. The Ministry of the Interior has partnered with local governments to accelerate social housing supply, with Mayor Huang Weizhe noting several sites selected for construction or design phases, allowing for ongoing suitability assessments.

Currently, Tainan has 11,170 social housing units either under construction or planned, with the city government initiating 2,087 units and the National Housing and Urban Renewal Center projecting 9,083 units across several districts. As of December 2020, 13 projects are underway, representing 6,124 households from both government and National Center initiatives.

Notable projects include Livable Kangqiao in Yongkang District and Yuzhong Anju 2 in Rende District, set to commence by December 2020. Additionally, the city government is developing three sites under Zhongshezhai, projected to provide 563 households by 2014, while the National Center is managing 10 sites, including Xindu Anju in the Eastern District, expected to yield 5,561 units.

In the Xibei area, two projects—Changsheng Good Room in Xinying District and Lu'an Good Room in Jiali District—are in progress, with the Changsheng project commencing on September 14, 2020, and anticipated completion in 2017. The first social housing rentals in Tainan are expected to be announced in 2014, with qualification and rental details to be shared at a January 2014 briefing.

The Municipal Development Bureau is formulating regulations aligned with the "Residential Law" and "Tainan City Social Housing Leasing Measures." Future rental rates will reflect market trends, tenant incomes, and fair access criteria. Information on rental qualifications and details will be available via the Tainan Housing Network post-completion, with ongoing rental management and subsidy initiatives to ease public housing burdens and expand services in the Xibei area.

強化數位韌性:OneWeb頻寬太小,台灣考慮跟亞馬遜合作發展網路衛星

Strengthening digital resilience: OneWeb bandwidth is too small, Taiwan considers cooperating with Amazon to develop Internet satellites

The Storm Media | Local Language | News | Dec. 20, 2024 | UndeterminedTech Development/Adoption

Wu Chengwen, chairman of Taiwan's National Science and Technology Council, has expressed concerns about the insufficient bandwidth of the OneWeb satellite network operated by Eutelsat. Consequently, Taiwan is considering a collaboration with Amazon's more advanced Kuiper project to enhance communication capabilities during emergencies.

In November, Chunghwa Telecom signed an exclusive agency contract with Eutelsat to manage Taiwan's low-orbit satellite services, committing to deploy a network of satellites for improved communication in remote areas and crisis situations. This initiative aims to strengthen Taiwan's digital resilience in light of potential threats to its communications infrastructure.

Wu Chengwen also questioned Eutelsat's financial stability, which he believes may be causing delays in the development of their second-generation satellites. However, Eutelsat OneWeb has publicly denied any financial issues, stating that the development of their next-generation satellite network is on schedule.

紅海危機周年胡塞要辦航行安全研討會 萬海船隻持續通行紅海

On the anniversary of the Red Sea crisis, the Houthis will hold a navigation safety seminar. Thousands of ships continue to pass through the Red Sea.

ETtoday | Local Language | News | Dec. 20, 2024 | Geopolitical Conflict and Disputes

The Houthi armed forces are planning a "Red Sea Navigation Safety" seminar to discuss navigation security as the crisis marks its first anniversary. Despite the turmoil, nearly 20% of vessels from regions like mainland China and Southeast Asia continue to navigate the Red Sea, with the Houthis primarily targeting ships linked to Israel, raising significant risks for maritime operations.

Companies such as Wan Hai Shipping have maintained regular voyages to ports like Jeddah and Al-Aqaba, utilizing Singapore-flagged vessels, while avoiding routes to Israel. The Houthis have openly stated their commitment to attack vessels associated with Israel until hostilities in Gaza and Lebanon come to an end, ensuring ongoing threats to maritime trade in the region.

Critics argue that the Houthis are unsuitable hosts for a shipping security seminar, given their history of attacks on over 100 vessels and threats to shipping companies. An email from the Humanitarian Action Coordination Center disclosed that the Houthis have threatened to ban ships from the Red Sea unless they report to them, particularly if carrying Israeli-linked cargo. This has heightened tensions amid ongoing global navigation, especially following the hijacking of the "Galaxy Leader" in November 2022, which led to temporary suspensions of navigation by some shipping lines.

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