Taiwan authorities followed the trend and responded to sanctions against Russia, and major technology manufacturers such as ASUS , Acer , MSI were named and attracted attention. Wang Xinwen, dean of the School of Tourism and Management, Changhua Zhongzhou University of Science and Technology, said in an interview with the Hong Kong China Review News Agency that Taiwan may miscalculate its impact on the technology industry in terms of sanctions against Russia.
Wang Xinwen
Wang Xinwen pointed out that since communication equipment is the key point of modern warfare and happens to be Taiwan's strengths, these major technology manufacturers are insightful from the sanctions stance. However, business behavior involves contract and goodwill issues, and it is not so-called political values that can be divided into one piece. In the long run, the DPP authorities' statement on the sanctions stance may put negative variables on the development of Taiwan's technology industry.
The Russian-Ukrainian war triggered a Western camp to sanction Russia. More than 450 companies announced their withdrawal from Russia, and the Taiwanese authorities also responded. However, Taiwan's major technology manufacturers Acer, Asus (ASUS), and MSI were previously named by Yale University in the United States and left without joining the game.
Wang Xinwen pointed out that Asus and Acer are the leaders of Taiwan's 3C products, which can be regarded as the earliest wave of Taiwan's technology industry internationally. In addition to computers, these brands have also developed well in ICT-related peripherals, including server , e-sports products and equipment, and have been developing globally for many years. Recently, due to the new crown epidemic, the demand for computer communication equipment has been strong and has become more vigorous, with channels and sales deployments all over the world. Previously, the DPP authorities assessed that the trade volume of Taiwan and Russia was not large and would not have a severe impact on Taiwan's economy, but they may miscalculate the extent of their impact on the technology industry.
Wang Xinwen explained that since the above-mentioned brands are all technology companies, technology equipment plays an important role in modern warfare, whether the relevant industries respond to sanctions has attracted international attention. In particular, Taiwan's information communications (ICT) products are internationally famous and have not withdrawn from Russia, it is naturally easy to be magnified and inspected. Therefore, Taiwan's statement on the sanctions position will have unexpected negative effects on the technology industry.
Wang Xinwen said that as mentioned above, these technology brands in Taiwan have established a complete production and supply system around the world. Now that the Russian-Ukrainian war has started, Taiwan’s position follows the Western camp, resulting in these brands having to choose sides. This is a relatively unfavorable situation for corporate and commercial behavior, because this involves channels and market layout, and it is not feasible to cut off materials or stop supply overnight.
He said that first of all, there are commercial contracts for the supply, sales and factory establishment of brands. Since there is a contract, it must be followed first. In addition, if the product is supplied to academic education, civil, commercial and other purposes, it is also worth thinking about whether the product supply should be rashly terminated. Assuming that the company only follows the so-called value position, it must stop the entire brand channel, and it may face huge compensation and goodwill losses.
So, Wang Xinwen said that the DPP authorities followed the trend and sanctions on Russia will put companies in a dilemma. First, responding to sanctions may face risks such as default, damage to goodwill, compensation, etc.; second, if normal operations are maintained, you must worry that the expectation of the Western camp to sanction Russia is not met. In the future, these brands may be subject to some negative measures or even boycotts in the European and American markets, which is a negative variable in the development of Taiwan's technology industry.
In addition, Wang Xinwen mentioned that in recent years, many companies in Taiwan have invested in the development of satellite communication equipment, especially in low-orbit satellite-related fields. Because the Russian-Ukraine war has attracted international attention, it is a business opportunity for Taiwanese manufacturers, but it may also face commercial risks encountered by companies such as Asus and Acer. The same is true for other industries including semiconductors, wafers, chips, etc., which are all part of the concerns that Taiwan's technology industry needs.
Source: Hong Kong China Review Network
