Suppliers of components for Elon Musk’s Starlink satellite internet equipment are shifting production from Taiwan (China) to Vietnam.

Wistron NeWeb Corporation (WNC), a Taiwanese supplier for SpaceX, is now manufacturing routers and network devices for Elon Musk's Starlink satellite internet service at a facility in Ha Nam Province, Vietnam.

The company's latest annual report in April stated, "In response to geopolitical risks and evolving customer demands, WNC has continued to expand its global production capabilities."

Universal Microwave Technology, another SpaceX supplier specializing in satellite components, also invested in a factory in Vietnam this year, according to official company documents.

Additionally, the company is building a new plant in Thailand. "Establishing overseas production capacity helps alleviate customer concerns about geographic risks and enhances cooperation with clients," the company noted.

Taiwan (China) has a robust satellite industry, with around 50 companies producing ground equipment and other sensitive components. The island’s government estimated the industry’s production value at over 200 billion New Taiwan dollars (around $6.23 billion) last year. SpaceX itself has approximately a dozen direct suppliers in Taiwan.

Shenmao Technology, a supplier of soldering materials for printed circuit boards, announced in April that it would invest $5 million to build a production facility in Vietnam.

In September, there were reports that SpaceX is looking to invest $1.5 billion in Vietnam, although details regarding timing and purpose were not disclosed.

Elon Musk's Starlink satellite internet service is expected to reach a new milestone this week, according to SpaceX President Gwynne Shotwell.

According to sources, the shift or expansion of production to Vietnam by suppliers is largely due to SpaceX's requirements.

Chin-Poon Industrial, another SpaceX satellite component supplier, reported that Elon Musk’s company requested that their new production orders be relocated from Taiwan to Thailand due to "geopolitical considerations."

This shift of Starlink component production away from Taiwan reflects a strong and ongoing trend.

Ming-Kuen Lai, CEO of Taiwanese construction company Acter, noted that his company’s business in Southeast Asia grew by 50% last year, outpacing growth in Acter’s core markets of Taiwan and China.

Acter specializes in building electronics factories and clean rooms for tech companies like Foxconn, Delta Electronics, Wistron, and ASE Technology.

Southeast Asia currently contributes just over 10% of Acter's revenue. However, Lai highlighted the rapid growth in Thailand, Vietnam, and Malaysia.

“Vietnam is experiencing an electronics assembly boom, while Thailand is seeing an increase in new printed circuit board factories, and Malaysia is attracting semiconductor packaging businesses,” he said.

Geopolitical tensions, combined with a priority on resilient global supply chains, have driven major shifts in the tech sector.

After decades of concentrating production in China and Taiwan, electronics manufacturers like Foxconn, Quanta, and Wistron, along with major chip suppliers from TSMC to United Microelectronics Corporation (UMC), are racing to establish operations in Southeast Asia, Japan, and even Europe.

The Vinh