The Strategist

Foxconn and TSMC to pay $350M for coronavirus vaccines for Taiwan

07/12/2021 - 03:48

Taiwan-based semiconductor companies Foxconn and TSMC have signed a contract to buy 10 million doses of the Pfizer/BioNTech coronavirus vaccine, Reuters reports, citing statements from the two companies. The deal is worth $350m.

Shanghai Fosun Pharmaceutical, which represents BioNTech in China, said the parties had signed the agreement.

The deal was announced a month after Taiwan authorities gave Foxconn founder Terry Gou the right to negotiate for vaccine purchases. 

Prior to this, Mr. Gou indicated that he was willing to enter into negotiations with Chinese vaccine supplier BioNTech and gift 5 million doses to the government.

Taiwan had already tried to purchase COVID-19 vaccines directly from German BioNTech, but the deal fell through. The Taiwanese authorities had advocated direct negotiations with the German manufacturer because of a lack of confidence in vaccines coming from China. 

After negotiations broke down, Taiwan accused China, which does not recognise the island's autonomy, of pressuring the German manufacturer.