Taiwan Set to Assist Domestic Industry Amid Threat of US Tariffs on Semiconductors
Taiwan’s government is expected to assess the need for additional support for its domestic industry in response to President Donald Trump’s threat to impose tariffs on imported semiconductors. Premier Cho Jung-tai made the statement on Wednesday, revealing that the economy ministry and other departments have been tracking the developments of the past few days.
As the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), is based in Taiwan and plays a crucial role in the global technology supply chain for companies such as Apple and Nvidia. Trump announced on Monday that he plans to impose tariffs on imported chips, pharmaceuticals, and steel to encourage producers to manufacture in the United States.
In response to Trump’s remarks, Cho emphasized that Taiwan’s position in the world’s industrial chain is not to be underestimated, and the country will continue to maintain its advantage. He added that Taiwan needs to strive for more cooperation externally and maintain its leadership in industrial and technological sectors.
TSMC, which announced plans to build a $12 billion factory in Arizona in 2020, has declined to comment on Trump’s latest tariff remarks. According to Taiwan’s Economy Minister Kuo Jyh-huei, the impact of any tariffs on semiconductor exports is expected to be small due to their technological superiority.
In another potential challenge for Taiwan, Trump has directed federal agencies to investigate US trade deficits and unfair trade practices, including alleged currency manipulation by other countries. Taiwan’s trade surplus with the US surged 83% last year, with exports to the US reaching a record $111.4 billion, driven by demand for high-tech products such as semiconductors.
