Chip magnate to steer plan to cut reliance on mainland as new economy minister
A Taiwanese business leader with a strong background in the semiconductor industry will become the island’s next economic affairs minister, in which role he is expected to continue the strategy of reducing economic reliance on the mainland.
Kuo Chih-hui, 71, also known as J.W. Kuo, co-founder of Topco Scientific which supplies electric components, will take office next month when president-elect William Lai Ching-te is sworn in.
The company supplies semiconductors, optoelectronics and solar energy products to clients including Taiwan Semiconductor Manufacturing Co, a world-leading chip maker, giving Kuo a strong grounding in global supply chains.
“We have great anticipation [Kuo] will leverage his profound knowledge and vast network in the industry to continue promoting the six core strategic industries in Taiwan,” premier-designate Cho Jung-tai told a news conference in Taipei.
The six core industries – information and digital technology, cybersecurity, medical technology, green and renewable energy, and national defence – were identified as such by the outgoing administration of President Tsai Ing-wen, and Cho’s comments indicate the next government will continue those policies.
Cho, a former chairman of the independence-leaning Democratic Progressive Party, said Kuo would also be tasked to ensure a stable power supply, which he said was the public’s most pressing concern.
Taiwan has experienced power outages, sometimes island-wide, since 2017, leading to public criticism of the government’s inability to maintain a stable power supply, especially for the island’s key semiconductor industry.
In a statement issued through Topco Scientific, Kuo said he would use his 40 years’ experience in business and his network of connections to promote the sustainable development of the island’s economy.
Kuo – who was once chosen as one of Taiwan’s top 100 chief executives and has accumulated significant personal net worth – said he would resign from all his posts at Topco.
Analysts said while the appointment of a business leader could help boost the island’s economy, it would still be difficult to cut its economic reliance on the mainland.
Tsai Cheng-yuan, a former legislator for Kuomintang, Taiwan’s main opposition party, welcomed Kuo as a “good choice” and said he had much more business experience than outgoing economy minister Wang Mei-hua, a lawyer by training.
Huang Huei-hua, a senior researcher with the Taiwan International Strategic Study Society think tank, said Wang was not a popular minister and had been given a poor performance rating in several opinion polls.
“However, when it comes to cross-strait policy, Kuo, like Wang, is expected to follow the Tsai government’s policy to reduce Taiwan’s high economic reliance on the mainland,” she said.
Huang said Lai had already made public his intention to play safe by following Tsai’s policy after the inauguration.
“This means Tsai’s policy of diversifying Taiwan’s trade in Southeast Asia and other parts of the world in a bid to cut economic reliance on the mainland will continue,” she said.