Tong Zixian watches Taiwan stocks plummet 2》The strength of Taiwan and the United States’ “long-term growth” will not be shaken

Tong Zixian believes that after Trump's disastrous defeat in the midterm elections, we can expect him to change his irrational style of "maximum pressure" on foreign industries.

The results of the U.S. midterm elections raised doubts about the shift in artificial intelligence (AI) industry policies. Taiwan stocks plummeted today. However, Pegatron Chairman Tong Zixian put forward a "long-term" view from the perspective of industry fundamentals, emphasizing that technology not only supports the U.S. economy, but also is the key to maintaining the basic national strength of the United States. No matter how the political parties change, it is impossible to give up the high-tech and energy industries easily. Taiwan's accumulated technological manufacturing strength for 30 years is an indispensable and important pillar of the global digital product supply chain.

Tong Zixian pointed out that the prosperity of the United States is based on its leading position in high-tech and energy industries. Technology is not only the driving force for economic growth, but also the basis for maintaining national competitiveness. Even if the Democratic Party controls a majority of seats in Congress, it "cannot, dare not, and will not" abolish the high-tech and energy industries that support the basic national strength of the United States. Otherwise, it may be the Democratic Party that faces an election defeat next time.

In response to market concerns that the Democratic Party's control of Congress will be detrimental to the development of the AI ​​industry, Tong Zixian bluntly said, "This is overblown." He believes that the Democrats are more establishment and moderate, and can instead move U.S. policies toward stability and rationality, which is another "multiple growth" factor.

Talking about Trump's defeat in the midterm election, Tong Zixian believes that Trump provoked the Hertz crisis, which caused the rise in oil and commodity prices, and the long-term "white supremacy of hostility to immigrants", which caused the Asian and Latino votes to deviate. These are all reasons for the electoral defeat. Other reasons include the persistence of "Trump supremacy", contempt for the media, humiliation of universities, and even dispatching national militiamen to run rampant, accumulating public dissatisfaction for a long time, and finally "retribution in the midterm elections."

Tong Zixian said that the impact caused by relevant political factors should not be confused with the long-term competitiveness of the U.S. technology industry. As for Taiwan's "long-term success", the key lies in the solid establishment of parts, components, semiconductors and system equipment manufacturing capabilities in the past 30 years. Regardless of future AI development, or existing network communications, computers, smartphones, satellites, electric vehicles and smart medical and other fields, Taiwan's industries have been deeply involved.

Tong Zixian said, "The whole world needs digital products, and Taiwan is an important partner." This highlights that Taiwan's position in the global technology supply chain cannot be easily replaced by short-term changes in the political situation. After Trump's disastrous defeat in the midterm elections, we can expect him to change his irrational style of "maximum pressure" on foreign industries, and at least reduce harsh and boring statements such as "Taiwan stole the U.S. chip industry."