The US-China trade war has led a growing number of Taiwanese businesses to bring some of their Chinese operations back home. On Friday, Economics Minister Shen Jong-chin said that investment from returning companies is set to break NT$700 billion (US$22.9 billion) next week.
Shen said that the return of Taiwanese businesses from China is starting to grow at a steady pace. He said that while this pace is unlikely to see abrupt changes, another bout of US-China trade friction could lead Taiwanese companies to speed up work to bring operations home.
Shen also responded to concerns about how well-prepared Taiwan is to accommodate returning businesses.
He said that concerns Taiwan may not be able to meet returning businesses’ demand for electricity are unfounded. He said that Taiwan has taken steps to make sure that even the power-hungry companies in the semiconductor sector will have the electricity they need. He said that the power grid’s operating reserve this year is at more than 10%, the equivalent of around four million kilowatts.
Shen also said that Taiwan has land ready to house returning operations. He said that returning companies are basing themselves in disused factories, bringing them back to life. However, he said that the government plans to ensure that there is enough space for returning companies to use. It plans to make land available for lease in industrial parks across parts of Taiwan’s southwest.