Perspectives with Wenchi Yu Ep. 32 Made With Taiwan: How AI, Security, and ‘One World, Two Systems’ Rewire Global Manufacturing
Feb 18, 2026
Wesley Chu, former Foxconn general counsel and AI policy researcher, walks through Taiwan’s race to become a trusted co‑producer in global manufacturing. He outlines the U.S.–Taiwan investment deal, the push from OEM to value‑driven partnerships, dual manufacturing lines for China vs. the rest of the world, and the push for AI factories, defense tech, and a Taiwan tech firewall.
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Reality Of Supply‑Chain Relocation
- Taiwan must accept some production relocation to the U.S. because of rising cross‑strait risk and U.S. national security demands.
- The tariff deal narrows gaps with Japan and Korea and helps Taiwanese firms compete in the U.S. market.
From Cost To Trust In Manufacturing
- Taiwanese firms must move beyond low‑margin OEM/ODM work to capture higher value in AI and democracy supply chains.
- Trust and security now matter as much as cost when partnering with U.S. customers.
Automate To Compete In The U.S.
- To survive high U.S. operating costs, Taiwanese factories must cut expenses and boost automation and sensors.
- Build AI factories using robotics and high‑quality sensors to protect margins in places like Texas.