Taiwan Vows To Address Donald Trump's Chip Concerns, Boost US Investment Amid US' Tariff Pressure

2025-02-15 09:00:45

(MENAFN- Live Mint) Taiwan's President Lai Ching-te has committed to addressing concerns raised by US President Donald trump regarding the Semiconductor industry. Lai announced plans to enhance US investment and procurement while also strengthening Taiwan's defense spending.

His remarks came in response to Trump 's directive to impose reciprocal tariffs on trade partners that tax US imports. Trump has also signaled intentions to raise tariffs on Taiwan-made semiconductor chips by up to 100%.

Addressing US concerns on semiconductors

Trump criticised Taiwan , claiming that the country had taken away the semiconductor industry that he wanted to restore in the United States. In response, Lai emphasised the importance of a globally integrated semiconductor supply chain.

“We are aware of President Trump's concerns,” Lai stated after a National Security Council meeting.“Taiwan's government will communicate with the semiconductor industry to formulate strategies and engage in further discussions with the United States.”

Lai also proposed building a global AI chip alliance among democratic nations to ensure a resilient supply chain. Taiwan, home to TSMC, the world's largest contract chipmaker and a key supplier for companies such as Apple and Nvidia, is a critical player in the industry.

TSMC's role and investments

TSMC has been making significant investments in the United States, including a $65 billion project in Arizona, initiated during Trump's first administration.

A senior Taiwan security official noted that if TSMC deemed it feasible to increase US investments, the government would assist in negotiations.

Countries that gave in to Trump's tariff threats

Several countries have adjusted their trade policies or made concessions in response to tariff threats from Trump. His aggressive trade stance led to heated negotiations, retaliatory measure s, and eventual compromises from key US trading partners.

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