MOEA Guards Taiwan Businesses Amid Trade War 2.0

As U.S. President Donald Trump moves to impose tariffs on China, Canada, and Mexico starting this month, concerns over a new wave of trade tensions—dubbed Trade War 2.0—are intensifying. Taiwan’s Ministry of Economic Affairs (MOEA) stated that with global supply chains undergoing restructuring, Taiwanese businesses have significantly expanded their presence in Mexico. More than 300 Taiwanese companies, primarily in electronic manufacturing services (EMS), machinery, and automotive parts, have already established operations there. The MOEA pledged to closely monitor U.S. policy developments and assist businesses in adapting their production strategies as needed.

Amid the nearshoring trend in recent years, Taiwan’s manufacturers have ramped up investments in Mexico, setting up new factories, upgrading production lines, and expanding operations. According to MOEA data, Taiwanese investments in Mexico are expected to reach $4 billion by 2025, creating an estimated 70,000 jobs. The EMS sector remains the dominant force, with major players including Hon Hai Precision (Foxconn), Pegatron, Wistron, Quanta, Compal, and Inventec. While most Taiwanese exports from Mexico are still destined for the U.S. market, MOEA emphasized its continued support in helping businesses optimize their manufacturing and investment layouts.

In 2023, Mexico became the world’s largest exporter of medium- and large-sized computer equipment, with exports totaling $19.9 billion, accounting for 16% of the global market share. Chihuahua State led the way, exporting $14.3 billion worth of goods—serving as a key hub for Taiwanese electronics manufacturers operating in Mexico.

Adding to trade tensions, Trump recently called for broad tariffs on imported computer chips and semiconductors. The MOEA reaffirmed that Taiwan and the U.S. share a deep, mutually beneficial partnership in the global semiconductor supply chain. Taiwan’s role as a leading OEM chip manufacturer complements U.S. semiconductor design, creating a win-win model for both economies. The ministry also underscored that Taiwanese-made semiconductor chips are semi-finished products, primarily serving U.S. technology firms as part of an integrated production process.