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The latest revenue data released by Taiwan's MediaTek has attracted widespread attention.

The data shows that the total revenue for the first seven months of this year was only 225.55 billion New Taiwan dollars, a decrease of 33.5% compared to the same period last year.

This data highlights the severe challenges faced by Taiwan's electronics manufacturing industry. In the first two quarters, Taiwan's exports fell by 19% and 17% respectively, and in July, Taiwan's export volume fell by another 10%.

Taiwan's economy is highly dependent on exports, with electronic products being the main component of exports. Therefore, the decline in MediaTek's revenue reflects the difficulties faced by the entire Taiwan electronics manufacturing industry.

In recent years, factors such as global economic instability, trade disputes, and supply chain disruptions have had a significant impact on Taiwan's export situation.

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At the same time, the continuous advancement of the US Chips Act has brought greater export difficulties to Taiwan's electronics manufacturing industry. The act aims to restrict chip supplies to Chinese tech giants such as Huawei and strengthen control over the global chip industry.

This has had a huge impact on Taiwan's position as a global chip manufacturing center, potentially causing it to lose market share and competitive advantage.

In addition to the impact of the US Chips Act, Taiwan's electronics manufacturing industry also faces competitive pressure from around the world. Many emerging markets, such as China and South Korea, are actively developing their electronics manufacturing industries and gradually emerging as competitors to Taiwan.In addition to the pressure of declining revenue, Taiwan's electronics manufacturing industry is also facing the challenge of industrial migration. For Taiwan's electronics manufacturing industry, industrial migration is not just a decision made by a single company, but a transformation of the entire industrial ecosystem. In particular, Taiwan Semiconductor Manufacturing Company (TSMC), the leading company in Taiwan's electronics manufacturing industry, has decided to transfer its production line to the United States, which will have a profound impact on Taiwan's export data. Once most of the production is completed in the United States, regardless of where the products are sold, they will no longer be counted as Taiwan's exports, which will be a major blow to Taiwan's economy. Moreover, TSMC's current migration is likely to be proven wrong in the end. Chip manufacturing requires very large industrial chain support, and the current industrial chain layout in Asia is very complete, while the United States is obviously not as good as Asia. TSMC will face the challenge of significantly increased costs in building factories in the United States. Moreover, as one of the world's largest traditional consumer markets, the United States is slowly losing its luster, with persistent inflation and a sluggish economy. In contrast, the mainland China market is becoming more and more attractive. In the first quarter of this year, Taiwan's GDP fell by 2.87%, while the mainland's GDP grew by 4.5%. In the second quarter, Taiwan's GDP finally grew by 1.5%, but the mainland's GDP growth reached as high as 6.3%.Looking at the first half of the year as a whole, Taiwan's GDP still declined by 0.27%, remaining in a state of recession.

If ranked by the GDP growth rate in the first half of the year, the Taiwan region became the province at the bottom of the list among all provinces in our country, and it is the only province with negative growth.

Even without comparing with Mainland China, Taiwan's performance is worse compared to other Asian countries.

Weak domestic demand in Western countries has led to a significant reduction in orders, and Southeast Asian countries such as Vietnam are also facing similar difficulties. Vietnam has already seen many factories shut down or operate at half capacity, severely affecting the local economy.

However, compared to Taiwan, the situation in Southeast Asian countries seems slightly better.

ASEAN countries are actively developing trade relations with Mainland China, which is an important opportunity for these countries. Mainland China, as the world's largest manufacturing base and consumer market, provides huge business opportunities for ASEAN countries.

ASEAN countries are actively promoting a free trade agreement with China, strengthening economic cooperation between the two countries, which brings stable orders and market demand for Southeast Asian countries.

Clearly, the answer is there, and the choice is right in front of us.