Taiwan is evaluating measures to support its semiconductor industry after former U.S. President Donald Trump threatened tariffs on imported chips.
Premier Cho Jung-tai stated on Wednesday that the government is closely monitoring the situation and holding emergency discussions. “In a day or two, we will urgently examine whether we should offer more cooperation plans and assistance to the industry,” he told the official Central News Agency during a temple visit for Lunar New Year celebrations.
He later emphasized that Taiwan would enhance international collaboration to maintain its leadership in the semiconductor industry and global supply chain.
Trump explicitly mentioned Taiwan on Monday while discussing his proposed tariffs. “We are going to be placing tariffs on foreign production of computer chips, semiconductors, and pharmaceuticals to return production of these essential goods to the United States,” he said. “They left us and they went to Taiwan, which is about 98 percent of the chip business … We want them to come back and we don’t want to give them billions of dollars.”
Taiwan, home to the world’s largest contract chipmaker, remains a crucial hub for global tech giants like Apple and Nvidia.
On Tuesday, Taiwan’s economy ministry responded, emphasizing the symbiotic relationship between the U.S. and Taiwanese semiconductor industries. “Taiwan and the U.S. semiconductor and other technology industries are highly complementary, especially the U.S.-designed, Taiwan-foundry model, which creates a win-win business model for both sides,” the ministry stated.
Taiwan’s exports to the U.S. reached a record $106.2 billion in the first 11 months of last year, making it the seventh-largest trade partner of the U.S. The island’s electronics exports surged by 83 percent year-on-year in the first 10 months of 2023, according to Taiwan’s executive yuan.
Meanwhile, the U.S. trade deficit with Taiwan hit an all-time high of $67.4 billion last year, according to the U.S. Census Bureau. Last April, Taiwan Semiconductor Manufacturing Company (TSMC) announced plans to build a third factory in Arizona, increasing its total U.S. investment to $65 billion.
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