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SpaceX has asked its suppliers in Taiwan to leave the country due to geopolitical concerns that could disrupt its supply chain in the future, according to a new report.
Company documents and sources working for the Taiwanese manufacturers in question reveal that SpaceX made the demand, prompting multiple suppliers to make plans in Vietnam and Thailand, Reuters reported on Tuesday.
At least one Starlink supplier has moved from Taiwan to Vietnam, and Starlink supplier Chin-Poon Industrial said SpaceX has asked it to move its manufacturing operations from Taiwan to Thailand.
SpaceX has reportedly been exploring alternative production regions for some time. Last year, company executives discussed establishing a satellite manufacturing center in Vietnam. It may invest $1.5 billion in the communist-led country, and the Vietnamese government is reportedly considering the proposal.
Wistron NeWeb Corporation started making Starlink products in Vietnam earlier this year and is looking to hire more workers to potentially double its workforce there. Another SpaceX supplier, Universal Microwave Technology, also reportedly invested in production in Vietnam this year.
It is likely that the geopolitical concerns are related to China’s tense relationship with Taiwan. China considers Taiwan a breakaway province and could attempt to take the country by force or block its borders at some point in the future. China last month practiced blockading Taiwan by encircling the island, which if carried out seriously could stop imports or exports from the country.
SpaceX has about a dozen suppliers in Taiwan, although Starlink’s service isn’t actually available there. Earlier this year, SpaceX was accused of denying Starlink access to US forces in Taiwan.
Last month, a news report revealed that Putin had asked SpaceX CEO Elon Musk not to offer Starlink in Taiwan as a favor to China. However, SpaceX and Musk have since denied these claims.
“As for Taiwan, as even the Taiwanese government has confirmed, Starlink is not available there because Taiwan has not granted us a license to operate, and regulators refused to waive the requirement that a foreign entity own 51% of Starlink in order to operate there operate. SpaceX has done that. has not accepted such a condition for any market in which it operates. This has nothing to do with Russia or China,” SpaceX responded.
Musk has previously said that Taiwan is an “integral part” of China. In response, Taiwanese Foreign Minister Joseph Wu said: “Listen, Taiwan is not part of the People’s Republic of China [and] certainly not for sale!”
Musk’s Tesla also recently complied with China’s data laws to move its self-driving technology closer to approval to operate in the country.