TSMC and Foxconn Secure Pfizer Vaccines... Will They Solve Taiwan's Vaccine Shortage?

China suspected of obstructing Taiwan's vaccine procurement
Negotiations underway for indirect procurement through private companies
TSMC and Foxconn likely to secure 10 million doses

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] As the Taiwanese government struggles to secure vaccines, Taiwan's largest IT companies, TSMC and Foxconn, are set to purchase Pfizer-BioNTech vaccines directly on behalf of the government.

According to the Wall Street Journal (WSJ) on the 11th (local time), negotiations led by TSMC and Foxconn to secure Pfizer vaccines on behalf of the Taiwanese government are nearing finalization, with the possibility of securing up to 10 million doses.

German pharmaceutical company BioNTech, together with Chinese pharmaceutical group Puxing Medical Group, issued a joint statement on the same day announcing plans to sell 10 million doses of Pfizer vaccines to TSMC and Foxconn.

According to the statement, TSMC and Foxconn are expected to donate the secured Pfizer vaccines back to the Taiwanese government.

Spokespersons for TSMC and Foxconn also confirmed that only the final signing remains regarding these negotiations.

Currently, Taiwan is experiencing low vaccination rates due to a shortage of vaccine supplies. As of the 9th, the first-dose vaccination rate relative to the entire population of Taiwan stands at 13.79%, significantly lower than South Korea (about 30%) and Japan (about 28%).

If the vaccine procurement negotiations between TSMC and Foxconn are finalized, it is expected to ease the Taiwanese government's vaccine supply difficulties.

Previously, the Taiwanese government had been negotiating with BioNTech since early this year to purchase Pfizer vaccines directly but failed to reach a final agreement.

Taiwan has claimed that the breakdown of negotiations was due to interference by the Chinese government. Although the Chinese government expressed intentions to donate vaccines directly to Taiwan, Taiwan rejected this, calling it a "hypocritical act disguised as goodwill" and stated it would not accept vaccines from Chinese authorities.

On the other hand, the Chinese government has completely denied allegations of obstructing the negotiations.

The Chinese government also emphasized that if Taiwan wants to purchase Pfizer vaccines, it must do so through Puxing Medical Group, a Chinese pharmaceutical company holding exclusive rights to supply Pfizer vaccines to Taiwan, Hong Kong, and Macau.

This is interpreted as reflecting China's 'One China' policy, which regards Taiwan as part of its territory and does not recognize its independent sovereignty.

WSJ reported that Puxing Medical Group's reiteration in the joint statement with BioNTech that "Puxing Medical Group holds exclusive rights to supply Pfizer vaccines to the Taiwan region" implies that Taiwan is perceived as a state subordinate to China.

[Image source=Reuters Yonhap News]

Meanwhile, if the vaccine procurement negotiations between TSMC and Foxconn are finalized, the Taiwanese government is expected to gain the political justification of not directly securing vaccines from the Chinese government. Taiwan has preferred to secure Pfizer vaccines directly from European factories without passing through mainland China.

According to Puxing Medical Group, the Pfizer vaccines secured by TSMC and Foxconn will be shipped directly from European vaccine production facilities to Taiwan without passing through mainland China.