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SpaceX has asked its suppliers in Taiwan to leave the country over geopolitical concerns that could disrupt its supply chain in the future, according to a new report.
Corporate documents and sources working for the Taiwanese manufacturers in question reveal that SpaceX had made the ask, resulting in multiple suppliers making plans in Vietnam and Thailand, Reuters reports Tuesday.
At least one Starlink supplier has moved from Taiwan to Vietnam, and Starlink supplier Chin-Poon Industrial said SpaceX asked it to move its manufacturing operations from Taiwan to Thailand.
SpaceX has reportedly been exploring alternative manufacturing regions for a while now. Last year, executives at the company discussed establishing a satellite production hub in Vietnam. It may invest $1.5 billion in the Communist-run 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, reportedly invested in Vietnam production as well this year.
It’s likely the geopolitical concerns are related to China’s tense relationship with Taiwan. China sees Taiwan as a breakaway province, and could attempt to take the country by force or block its borders at some point in the future. China practiced blockading Taiwan just last month by surrounding the island, which could, if executed in earnest, stop imports or exports from the country.
SpaceX has about a dozen Taiwan-based suppliers, though Starlink’s service isn’t actually available there. Earlier this year, SpaceX was accused of denying Starlink access to US troops in Taiwan.
Last month, a news report revealed that Putin asked SpaceX CEO Elon Musk not to offer Starlink in Taiwan as a favor to China. SpaceX and Musk, however, have since denied those claims.
“Regarding Taiwan, as even the Taiwan government has confirmed, Starlink is not available there because Taiwan has not given us a license to operate, and regulators declined to remove a requirement that a foreign entity own 51% of Starlink to operate there. SpaceX 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, Taiwan Foreign Minister Joseph Wu said: “Listen up, Taiwan is not part of the PRC [and] certainly not for sale!”
Musk’s Tesla has also recently abided by Chinese data laws to let its self-driving tech get closer to approval to operate in the country.
