Tue Jan 28 12:16:26 UTC 2025: ## Taiwan Defends Chip Industry Amid Trump’s Tariff Threats
**Taipei, Taiwan –** Taiwan’s government has pushed back against U.S. President Donald Trump’s threat to impose tariffs on imported chips, asserting that the semiconductor partnership between the two nations is mutually beneficial. The statement follows Trump’s announcement on Monday of planned tariffs on imported chips, pharmaceuticals, and steel to encourage domestic production.
Home to TSMC, the world’s largest contract chipmaker, Taiwan plays a crucial role in the global tech supply chain, supplying major companies like Apple and Nvidia. The Taiwanese Economy Ministry emphasized the complementary nature of the U.S.-designed, Taiwan-manufactured chip model, calling it a “win-win” situation. The ministry indicated it will maintain close contact with the U.S. to ensure continued mutually beneficial cooperation.
Taiwan’s Presidential office echoed this sentiment, highlighting the strong relationship and trust between the two countries regarding chip and high-tech cooperation. This collaboration was further solidified by TSMC’s $65 billion investment in a new Arizona factory, initiated under Trump’s first term.
While TSMC declined to comment on the latest tariff threats, Taiwan’s Economy Minister Kuo Jyh-huei previously downplayed the potential impact, citing the technological superiority of Taiwanese semiconductors. However, the substantial trade surplus Taiwan enjoys with the U.S. – a record $111.4 billion in 2024, up 83% from 2023 – adds another layer of complexity to the situation. Trump’s broader investigation into trade deficits and alleged unfair trade practices presents a further challenge for Taiwan.
First Piper 