TSMC and Foxconn join forces to secure vaccines for Taiwan

The world’s two largest tech manufacturers have signed an agreement to purchase 10 million doses of BioNTech’s Covid-19 vaccine to donate to Taiwan, resolving a nearly year-long political tug-of-war over securing vaccines for the country.

TSMC, the world’s largest contract chipmaker, and Foxconn, the leading manufacturer of Apple’s iPhone, said they had agreed a $350 million deal with Chinese conglomerate Fosun, which manages BioNTech’s distribution rights to greater China.

The two tech companies intervened because the sovereignty dispute over Taiwan had prevented Taipei from buying BioNTech’s jabs.

China claims Taiwan as part of its territory and often tries to force third countries and companies to treat the country as if it were ruled by Beijing.

Taipei has been trying to strike a deal with the German biotech company since August last year. But an initial contract signed in January derailed after BioNTech demanded changes to the language used to describe Taiwan in a public announcement, the Taiwanese health minister said. Beijing has also protested vaccine donations to Taiwan by the US and Japan as “interference”.

The Chinese government and Fosun claimed they would like to supply vaccines to Taiwan, but the Chinese company has not filed an application with the country’s Food and Drug Administration to distribute the BioNTech shot in Taiwan – a step required for any importer. or distributor of medicines. Local officials said Beijing refused to do business with the Taiwanese government.

The deadlock, which persisted as deliveries to Taiwan of other vaccine orders from AstraZeneca and Moderna were delayed due to global shortages, increased pressure on the government after the island experienced a significant outbreak for the first time since mid-May.

The deal with TSMC and Foxconn helped to circumvent the political deadlock. On Sunday, Fosun said in a statement that the injections intended for Taiwan would be sold through its Hong Kong branch and a Taiwanese medical company to TSMC and Yongling Foundation, the charitable organization of Foxconn founder Terry Gou.

In statements filed Monday with the Taiwan Stock Exchange, TSMC and Hon Hai Precision Industry, Foxconn’s flagship company, said their respective purchases were worth up to $175 million each and the vaccines would be donated to Taiwan’s Ministry of Health.