Ferrari N.V. saw a remarkable surge in sales in Taiwan, outpacing China and Hong Kong, thanks to the flourishing wealth of the country’s chip entrepreneurs and the diversification of global supply chains.

What Happened: Ferrari’s sales in Taiwan have doubled over the past four years, largely due to the increasing wealth of the country’s chip industry leaders and the shift of global supply chains away from China, reported the Financial Times.

CEO, Benedetto Vigna, noted that the demand for supercars in Taiwan is growing faster than in China or Hong Kong, driven by the rising affluence of the country’s citizens.

Vigna said, “China is growing but . . . less than Taiwan. In Taiwan, you have more entrepreneurs, and the chip industry is booming. You have a lot of people that are making a lot of money.”

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Despite the majority of sales coming from Europe and the US, the carmaker reported a significant increase in shipments to mainland China and Taiwan, from 5% of the total in 2020 to nearly 11% in 2023.

The wealth surge in Taiwan, driven by the semiconductor industry and the relocation of Taiwanese manufacturers from China, has resulted in Ferrari ( RACE ) gaining numerous new customers in the past four years.

Taiwan is home to the world’s biggest semiconductor foundry TSMC, which supplies chips to the world’s biggest fabless semiconductor companies and consumer electronics companies.

The island nation is now the fifth-richest country in the world, with a per-capita income of $178,503, the report said, citing Allianz Global Wealth Report.

Why It Matters: The development comes amid Ferrari’s strategic shift towards electric and hybrid cars, with the Italian luxury sports car manufacturer aiming to have 60% of its sales split between fully electric and hybrid cars by 2026. The company plans its first fully electric model expected to be launched in 2025.

Despite the ongoing shift towards electric vehicles, Ferrari’s traditional car sales continue to thrive, especially in markets like Taiwan. This could be seen as a positive sign for the company’s future, as it navigates the transition to electric vehicles.

The auto industry is in a state of flux amid the ongoing global economic uncertainty, with a cautious consumer scaling back on consumer discretionary purchases.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.