Taiwan, other 'low cost countries' grow exports to US as China's shrink

隨著中國的萎縮，台灣與其他“低成本國家”增加了對美國的出口

US firms diversifying supply away from China in ongoing trend


TAIPEI (Taiwan News) — Taiwan increased its share of exports to the U.S. last year as China’s declined, as U.S. companies increasingly move manufacturing to other markets in “low-cost countries” (LCCs) throughout Asia.

Out of 14 LCCs, China and Hong Kong’s combined exports to the U.S. were down nearly three percent in 2022 from the previous year, per Nikkei, at 50.7% in 2022, compared to 53.5% in 2021.

Consulting management firm Kearny published the findings, and includes the Chinese mainland, Hong Kong, Taiwan, India, Vietnam, Thailand, Malaysia, Indonesia, the Philippines, Singapore, Cambodia, Pakistan, Bangladesh and Sri Lanka in their list of LCCs.

According to the report, the shift in manufacturing away from China reflects a trend that began in 2013, as companies seek to avoid intellectual property, political, supply chain, and other associated risks.

In March, chairman of the Taiwan electronics manufacturing giant Foxconn, Young Liu (劉揚偉) said that about 70% of the company’s revenue came from products made in China, but "going forward the proportion of overseas regions will continue to increase."

In November 2022, Foxconn announced plans to increase manufacturing staff in India, and announced it had invested a further NT$1.5 billion (US$500 million) in its India operations. At the time, Reuters reported analysis suggesting 25% of all Apple products, for which Foxconn is a major manufacturer, may be made in India by 2025.

According to industry research, Cambodia, Vietnam, and Thailand are also benefiting from semiconductor manufacturing operations moving out of Hong Kong and China. Taiwan’s TSMC announced in late 2021 that the company was in talks with the Indian government to increase investment in the country, and in March, the Thai subsidiary of a Taiwanese electronics and auto parts supplier became Thailand's most valuable company.

Meanwhile, the number of manufacturing plants making Apple products in Vietnam increased by 35% between 2018 and 2020. Less industrialized nations such as Cambodia are also reportedly attracting manufacturing away from Hong Kong and China, with more than US$2 billion (NT$61 billion) invested in electronics and automotive manufacturing by the Cambodian government in 2023.