Chairman of Topco Group Appointed as New Economy Minister of Taiwan

Chairman of Topco Group (a supplier to chip giant TSMC), J. W. Kuo, has been appointed as the new Economy Minister of Taiwan by the incoming premier, Cho Jung-tai. The figure with deep industry knowledge has been placed at the helm of a ministry tasked with ensuring stable power supplies, a critical issue for the Taiwanese economy.

TSMC and Chip Industry

Taiwan Semiconductor Manufacturing Company Limited, commonly referred to as TSMC or Taiwan Semiconductor is the world’s leading contract chipmaker; the chip industry is the essence of Taiwan’s export-driven economy. It is one of Intel Corporation’s key competitors and one of the firms Intel outsources wafer production from.

Appointment of the Chairman

The Economy Ministry oversees economic development, approves overseas investments, and manages power generation and distribution through state-owned utility Taipower.

Cho, who will assume premiership upon the inauguration of president-elect Lai Ching-te on 20 May, 2024, announced the appointment on Tuesday. Kuo, a doctor of business administration from National Taipei University, replaces Wang Mei-hua, a lawyer by training, who served as the previous economy minister.

While highlighting Kuo’s background in the semiconductor industry and his extensive international experience with global supply chains, Cho emphasized that ensuring stable power supplies will be the new minister’s top priority.

“I will also ask Minister Kuo to use his expertise in the energy industry to ensure stable power supplies,” Cho said, “and further develop diversified green energy to encourage deep energy conservation for industry.”

Power Supply in Taiwan

Taiwan has faced criticism for its handling of power outages that struck the island in 2017, 2021 and 2022. These disruptions raised concerns about the government’s commitment to securing stable electricity supplies, particularly for vital chip industry.

The state is actively investing in renewable energy sources such as wind power while simultaneously constructing new terminals to import liquefied natural gas (LNG).

Looking Forward

Kuo himself is yet to elaborate on his specific plans, stating that he will unveil his agenda upon assuming office. Topco Group has also remained silent on the appointment, with no official response regarding potential changes to Kuo’s position within the company once he takes on his new government role.