Overview

• President Donald Trump has threatened Taiwan Semiconductor Manufacturing Company (TSMC) with a tax of up to 100% if it does not expand its manufacturing operations in the United States.
• TSMC recently announced a $100 billion investment plan to build five additional chip factories in the U.S., reinforcing its commitment to bolstering domestic semiconductor production.
• Taiwan is actively negotiating with the U.S. to resolve tariff disputes, with officials emphasizing strategic communication and proposals to strengthen bilateral trade ties.
• In response to market instability linked to the tariff tensions, Taiwan has activated a $15 billion stock stabilization fund to restore investor confidence.
• Trump has criticized the Biden administration's $6.6 billion subsidy to TSMC's U.S. operations, arguing that such financial aid is unnecessary for companies already expanding domestically.