Wednesday, August 02, 2017
Major enterprises moving out of Taiwan, foreshadowing the island's bleak future
ANBOUND
Foxconn Group announced that it will spend 10 billion US dollars to set up factories in the United States, while the Taiwan government is ready to further restrict Taiwan's young generation of talent seeking employment in Mainland China; these events show that Taiwan's prospect is rather bleak, forcing enterprises and talents to seek for opportunities elsewhere. Recently, several Taiwan's leading enterprises have relocated or plan to do so; Formosa Plastics Group plans to move to Louisiana, United States and has invested more than 90 billion US dollars to build factories; E-United Group also intends to invest in steel mills in the United States while TSMC has also been worried about Taiwan's power supply and had considered to invest in the United States as well. There are two main reasons for the business relocation in the United States: First, unresolved issues of lack of water, electricity, work; second, confrontation between the Taiwan and the Mainland, which causes enterprises to wary of the market being affected.