TAIPEI (TVBS News) — Taiwan's display manufacturing sector could emerge relatively unscathed from looming U.S. tariffs, according to industry leaders who are positioning their sector as a potential bridge rather than a competitive threat to American interests. James Yang (楊柱祥), vice chairman of the Taiwan Display Union Association (TDUA, 台灣顯示器產業聯合總會理事長), emphasized this distinction while addressing industry stakeholders at a pre-conference gathering for the "Touch Taiwan Smart Display Show" on Monday (April 7). Yang suggested that rather than being adversaries in the marketplace, Taiwan's panel industry could actually strengthen economic ties between the two economies amid growing trade tensions.
The industry representative called on Taiwanese authorities to recalibrate their approach to industrial development, arguing that the panel manufacturing sector deserves greater consideration in national economic planning precisely because it doesn't compete directly with American producers. Yang drew a pointed contrast with Taiwan's semiconductor industry, which has attracted significant government support but also contributes substantially to the trade imbalance with the United States that has triggered recent tariff actions. Looking beyond immediate concerns, he advocated for a comprehensive reassessment of Taiwan's industrial transformation strategies over the coming five to ten years to better position the island's manufacturing ecosystem in the changing global trade landscape.
Adding further perspective on the industry's response to potential tariffs, TDUA Chairman Ko Fu-ren (柯富仁) cautioned that any significant supply chain realignments would require between eight and 12 months to implement effectively. Ko emphasized the continuing ambiguity surrounding the actual implementation of Washington's tariff measures, suggesting that the final impact could vary considerably across different industrial sectors once specific details emerge. The chairman revealed that the display industry association is still working toward internal consensus on the best approach forward and intends to formulate a comprehensive set of recommendations to present to government officials once their analysis is complete.
Illustrating the limited vulnerability of major Taiwanese display manufacturers, Ko cited specific figures from industry leader AUO Corporation, noting that the company's U.S.-bound products represent just 12% of its total revenue stream — a proportion that suggests resilience against potential tariff disruptions. The chairman struck a notably optimistic tone when discussing opportunities in the American automotive sector, an area where Taiwanese display technology is increasingly finding applications. Ko highlighted strategic positioning that could help circumvent tariff concerns, specifically mentioning AUO's acquisition of German automotive parts manufacturer BHTC, which operates production facilities in Mexico that could potentially serve the U.S. market under more favorable trade terms.
