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Business trends

Taiwan tech sector turns to Japan to counter 'red supply chain'

Nuvoton's Panasonic chip deal is part of a drive to fend off Chinese rivals

A Taiwanese company's move to purchase Panasonic's chip business is only the latest example of a budding cross-border tech alliance.   © Reuters

TAIPEI -- Taiwan's tech companies are eager to acquire Japanese assets to fortify their defenses against rising Chinese rivals, with Nuvoton Technology emerging this week as a buyer for Panasonic's semiconductor business.

"Consultations on alliances with Japanese companies and M&A deals have been increasing since 2016," a Taiwan chip industry insider explained. That was the year contract manufacturing giant Hon Hai Precision Industry, better known as Foxconn, acquired Sharp. Now that Sharp is in the black after years of struggles, the acquisition is seen as a Japan-Taiwan success story others are keen to emulate.

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