Taiwan's Electronics Giants Shift Focus to Weapon Manufacturing
Taiwanese private companies are shifting into the defense sector and manufacturing weapons as China's military power grows and tensions rise in the Asia Pacific region. Taiwan's military, under pressure to match China's military capacity, is loosening procurement rules to allow private companies to develop dual-use technologies for its military. U.S. defense contractors are also exploring ways to manufacture noncore components of their weapons systems in Taiwan. However, progress is slow due to bureaucratic processes and concerns over intellectual property and security vulnerabilities. Taiwanese companies argue that making arms and defense equipment is a natural step for the world's foremost semiconductor manufacturing base.
