Taiwan phrases chip enterprise a ‘win-win’ because it responds to Trump’s tariff menace

U.S. President Donald Trump. File
| Photograph Credit score: Reuters

Semiconductor enterprise between Taiwan and the US is a “win-win” mannequin for each side given the excessive degree of complementarity, the federal government mentioned on Tuesday in response to tariff threats from U.S. President Donald Trump.

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House to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is a key hyperlink within the international know-how provide chain for corporations reminiscent of Apple and Nvidia.

Mr. Trump mentioned on Monday (January 27, 2025) he plans to impose tariffs on imported chips, prescribed drugs and metal in an effort to get the producers to make them in the US.

Additionally Learn | U.S. ordered TSMC to halt shipments to China of chips utilized in AI purposes

“Taiwan and the U.S. semiconductor and different know-how industries are extremely complementary to one another, particularly the U.S.-designed, Taiwan-foundry mannequin, which creates a win-win enterprise mannequin for Taiwan and U.S. industries,” Taiwan’s Financial system Ministry mentioned in an announcement in response.

The Ministry “will proceed to concentrate to U.S. coverage going ahead, and there shall be shut contact and cooperation between the 2 sides to make sure that Taiwan’s and U.S.’ industries and nationwide pursuits can develop in a mutually useful means within the face of worldwide challenges”.

Taiwan’s Presidential workplace, in a separate assertion, mentioned the island and the US have “good mutual belief and a detailed relationship” when it got here to chips and high-tech cooperation, which it additionally mentioned was a “win-win scenario”.

In 2020, below the primary Trump administration, TSMC introduced that it will construct a $12 billion manufacturing unit in Arizona in a win for efforts by the U.S. authorities to wrestle international tech provide chains again from China. It later boosted these plans with the full funding now standing at $65 billion.

TSMC declined to touch upon Mr. Trump’s newest tariff remarks.

Earlier this month, Taiwan Financial system Minister Kuo Jyh-huei mentioned he solely anticipated a small affect from any tariffs imposed by Mr. Trump on semiconductor exports given their technological superiority.

In one other potential problem for Taiwan, Trump final week directed federal companies to research persistent U.S. commerce deficits and unfair commerce practices and alleged foreign money manipulation by different nations.

Taiwan’s commerce surplus with the US surged 83% final yr in contrast with 2023, with exports to the U.S. hitting a file $111.4 billion pushed by demand for high-tech merchandise reminiscent of semiconductors.