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Industry Leaders Discuss Opportunities and Challenges of Supply Chain Restructuring — Insights from GIGABYTE and Vanguard International Semiconductor

On October 12, the Center for Democracy, Science, and Emerging Technology (DSET) hosted the “Supply Chain Resilience Forum” at National Chengchi University, gathering over 300 experts, scholars, and industry leaders.

DSET, a rising think tank dedicated to advancing Taiwan’s international engagement and 1.5-track diplomacy, invited experts from leading think tanks in the U.S., Japan, South Korea, and Europe to discuss the global shift from “economic efficiency” to “economic security” in supply chain restructuring. The discussions aimed to define Taiwan’s role and direction in policy research, ultimately ensuring national security through economic resilience.

The forum featured industry insights from GIGABYTE Technology General Manager Meng Hsien-Mi and Vanguard International Semiconductor (VSMC) AVP Jonathan Chang, who shared their perspectives on supply chain resilience from a business standpoint.

Jonathan Chang, Associate Vice President of VSMC, emphasized the importance of precision and efficiency in semiconductor manufacturing. Taiwan’s strength is built on 30 years of accumulated experience and still relies on international collaboration. “Chip manufacturing depends on the international supply chain; Taiwan purchases equipment from suppliers and fulfills customer needs in the most efficient way possible.” Chip manufacturers are obligated to address customer concerns and demands regarding supply chains, and these decisions are often driven by customer requirements rather than the company’s own choices. VSMC, for instance, has responded to customer demands for supply chain resilience by expanding operations in Singapore.


At the same time, VSMC has begun focusing on transitioning to smart manufacturing, which includes automation and data analytics to improve production efficiency and maintain flexibility in global supply chains. Currently, VSMC specializes in the production of power ICs, particularly in the fields of electric vehicles (EVs) and artificial intelligence (AI) servers. Despite geopolitical risks, Chang emphasized that the company should seize opportunities to expand its technological capabilities and product lines.

Meng Hsien-Mi, General Manager of Gigabyte Technology’s Manufacturing Group, discussed how Gigabyte has been addressing geopolitical challenges. Historically, Gigabyte has relied on production facilities in China, but due to tariffs and restrictions imposed by the United States, the company has been forced to shift part of its production to locations such as the United States, Europe, and Southeast Asia. He noted, “At one point, nearly 60% of Gigabyte’s products came from China. Geopolitical issues present challenges not only in terms of technical talent but also in cross-cultural management.”


These challenges have pushed Gigabyte to diversify and mitigate risks, moving beyond hardware manufacturing, which was their primary revenue focus, and gradually entering fields such as AI servers. This has positioned Gigabyte as one of the key suppliers of Nvidia’s H200. Meng emphasized the importance of supply chain flexibility in responding to geopolitical risks, and highlighted the transparent partnerships Gigabyte maintains with both suppliers and customers. While overseas factories handle mass production, Taiwan remains the central hub for product design and production recipes.

At the end of the forum, Deputy Secretary General of the National Security Council, Fei-Fan Lin, mentioned in his closing remarks the strategic importance of Taiwan’s semiconductor industry in global supply chain security. Taiwan’s ability to produce cutting-edge semiconductors positions it as a critical player in the global economy. He noted that China’s threats to Taiwan not only jeopardize the stability of the Taiwan Strait but also the security of the global supply chain, underscoring the need for international cooperation to protect this industry. He concluded by thanking DSET for its contributions over the past year and emphasized, “The government will continue to provide DSET with the necessary support, strengthening its role as a platform for Taiwan’s international exchange, and deepening cooperation with democratic nations.”

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