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2mo ago

Taiwan Responds to U.S. Tariff Threats with Investment Plans and Semiconductor Talks

Facing criticism from President Trump, Taiwan pledges to boost U.S. investments, enhance defense spending, and collaborate on a resilient global chip supply chain.

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Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. REUTERS/Florence Lo/Illustration/File Photo
An image about President Trump says Taiwan 'took our chip business away, and we want that business back'

Overview

  • President Trump has accused Taiwan of undermining U.S. semiconductor manufacturing and threatened tariffs of up to 100% on Taiwan-made chips.
  • Taiwan President Lai Ching-te announced plans to increase U.S. investments, focusing on semiconductor production and trade balance improvements.
  • TSMC, the world's largest contract chipmaker, is reportedly exploring options to expand its U.S. presence, including advanced packaging facilities and potential collaboration with Intel.
  • The U.S. government is considering alternatives for TSMC's role in bolstering domestic chip production, but political concerns over foreign control of Intel's factories remain significant.
  • Taiwan emphasized the importance of a globally integrated semiconductor ecosystem and proposed a partnership with democratic nations to strengthen supply chain resilience.