Ministry of Economic Affairs: Taiwan’s Supply Chain Has Withstood Tests and Never Faced Complete Disruption
On July 19, the Ministry of Economic Affairs released a press statement responding to former Intel CEO Pat Gelsinger’s recent warning about risks to Taiwan’s energy supply. The ministry stated that Taiwan plays a critical role in the global semiconductor and ICT industry supply chains. Over the past 25 years, Taiwan has weathered the 1999 Jiji earthquake, the COVID-19 pandemic, and multiple international energy crises, yet has maintained stable industrial operations without any complete supply chain disruptions.
The ministry highlighted that Taiwan’s semiconductor industry has demonstrated strong adaptability in the face of natural disasters. For instance, during the April 3, 2024, Hualien earthquake, while a few production lines in certain facilities were briefly affected, other plants quickly adjusted production. The overall downtime did not exceed one day. The ministry emphasized that Taiwan’s industrial clusters are highly integrated, with close collaboration among companies, effectively dispersing risks and ensuring the continuity of the supply chain.
Regarding energy supply, the ministry noted that Taiwan’s oil and gas imports come from diverse and dispersed sources, with safety stock levels exceeding legal requirements. Through mechanisms such as medium- and long-term contract procurement, flexible spot market adjustments, and safety stock management, Taiwan has effectively reduced risks associated with reliance on a single region or supplier. Currently, domestic oil and gas supplies are sufficient to address challenges posed by changes in the international landscape.