Yung Shin Group is intensifying its focus on the active pharmaceutical ingredient (API) segment through a “strengthen and expand” strategy aimed at enhancing vertical integration and boosting competitiveness in key products. The Group plans to concentrate on core strategic APIs for which there are fewer than three global suppliers or which serve as key export channels for the Group. It will deepen internal collaboration and does not rule out the possibility of expanding API production capacity outside of China in the future.
Yung Shin noted that while the Trump-era tariffs have not yet targeted semiconductors or pharmaceuticals, a 20% tariff has been imposed on APIs exported from China to the U.S. However, the impact of this tariff on the broader supply chain remains limited. As for the previously rumored U.S. Most Favored Nation pricing policy for drugs, the company’s internal assessment suggests minimal impact, given that U.S. generic drug prices currently average just 0.87 times those in OECD member countries. In fact, the recent appreciation of the New Taiwan dollar may benefit many domestic-focused pharmaceutical companies.
Yung Shin also acknowledged that due to the pricing advantage of APIs from China and India, the Group has historically used a low proportion of in-house APIs. However, it has now committed to scaling up and strengthening its API capabilities. By avoiding direct competition with China and India on pricing, the Group will instead target niche APIs with fewer than three global suppliers or those that are key to its own export channels. Currently, Yung Shin is collaborating with its affiliate Yung Zip on 40 to 50 such projects, with the goal of steadily increasing the Group’s internal API supply ratio.
Looking ahead, Yung Shin stated that it is continuing to evaluate various strategies to further integrate API competitiveness. It is already expanding production facilities on available land and is also open to the possibility of building additional API capacity in regions outside of China.
Resource: 聚焦原料藥做大做強，永信集團兩策略選題
