US firms in Taiwan adapt by picking local partners as investments grow: AmCham

US firms in Taiwan adapt by picking local partners as investments grow: AmCham

American businesses in Taiwan are increasing partnerships with local tech firms to mitigate supply chain shifts and geopolitical risks. Amid tensions between China and the US, American companies view Taiwanese suppliers as a means to secure stable supply chains and critical components. The Covid-19 pandemic and geopolitical tensions have disrupted global supply chains, prompting businesses to prioritize building resilience and contingency plans. Despite these challenges, American investment in Taiwan has grown, particularly in the technology and semiconductor industries. Approved investments from the US reached a record-high of $932 million in 2023.

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Frequently Asked Questions

U.S. Firms and Investment in Taiwan

Q: Why do U.S. firms choose to invest in Taiwan?

A: U.S. firms invest in Taiwan for a variety of reasons including the welcoming attitude towards foreign direct investment (FDI), the active efforts by Taiwanese authorities to court partnerships, and the potential to improve business growth. Taiwan offers a conducive environment with initiatives that encourage U.S. investments. Source

Disputes between U.S. Investors and Local Partners in Taiwan

Q: Have there been any disputes between U.S. investors and local partners in Taiwan?

A: While disputes can happen in international business, the 2023 Investment Climate Statements on Taiwan mention that there have been reports of disputes between U.S. investors and their local Taiwan partners. Specific details of these disputes would require more focused research on this particular area. Source

Enhancing Market Presence in Taiwan

Q: What strategies do U.S. firms use to enhance their market presence in Taiwan?

A: U.S. firms participate in major trade shows and advertise in Taiwan trade publications as useful ways to boost sales. Engaging with local partners also often provides important insights and assistance in navigating the local business landscape. Source

Support from the American Institute in Taiwan (AIT)

Q: What type of support does the American Institute in Taiwan (AIT) provide to U.S. businesses in Taiwan?

A: The AIT facilitates and celebrates commercial partnerships between U.S. and Taiwan companies, aiming to increase opportunities for business growth and encourage U.S. business interests on the island. This implies a supportive role to foster investment and collaboration. Source 1, Source 2

Compliance with Anti-Corruption Laws

Q: How can U.S. businesses ensure compliance with anti-corruption laws when choosing local partners?

A: U.S. companies should be mindful of the Foreign Corrupt Practices Act (FCPA) when engaging with local partners overseas. The FCPA provides guidance on regulatory compliance to prevent corruption and bribery in international business transactions. Source

Please note that while these FAQs are crafted based on the available content in the search results, they do not directly cite the South China Morning Post's article about American Chamber of Commerce (AmCham) statements on investment growth and adapting strategies with local partners in Taiwan. The specific information from that source would likely provide more detailed and direct answers related to U.S. firms adapting in Taiwan through partnership with local companies.