With Tesla pushing suppliers to diversify beyond China and Taiwan, global supply chains are shifting due to political and business pressures. Manufacturers and logistics providers are reassessing their locations, with Taiwanese giants TSMC and Foxconn leading the way.
TSMC, the world’s largest chipmaker, and Foxconn, known for assembling products like Apple’s iPhones, are crucial to global tech and automotive supply chains. Their decisions significantly influence the industry.
TSMC has strategically chosen locations central to the automotive supply chain. For example, its upcoming European fab in Dresden is near facilities of Volkswagen, BMW, and Porsche, with co-investors like Bosch and Infineon. TSMC’s factory in Japan’s Kumamoto Prefecture is aligned with Sony, Toyota, and Denso, supporting Japan’s carmaking and electronics industries.
Foxconn is expanding into Mexico, India, and Southeast Asia, and diversifying into factory automation, transportation, and logistics. Its decision to set up in these regions shows its commitment to a broad sector base beyond consumer electronics.
