TH Tung, chairman of Pegatron, has noted that his company has reestablished some manufacturing sites in Taiwan in recent years, and that moving production back to Taiwan could be a key direction to help reshape some of Taiwan's manufacturing industries.

With the US government announcing an around 10% tariff on China-made products in the latest round of trade war between the two countries, many Taiwan-based supply chain makers have expressed willingness of moving their factories back to Taiwan from China.

Tung, who is also president of Taipei Computer Association (TCA), pointed out that Pegatron has expanded its manufacturing capacity in Taiwan by acquiring buildings and factories.

But Tung noted that a lack of resources such as power, land, workforce and water is now the biggest challenge for the Taiwan government if it wants to attract more manufacturers back to the country. He added China faces similar issues, particularly labor shortages.

Tung hopes the US-China trade tensions can reach an end soon.

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