Berliner Tageblatt - Taiwan could help industry after Trump warns of chip tariffs

The self-ruled island is a global power in the manufacturing of chips, which are used in products from Apple's iPhones to Nvidia's artificial intelligence hardware and are a key driver of its economy.

"In the next day or two, we will urgently assess whether additional collaboration plans or support measures for the industry are needed," Premier Cho Jung-tai told reporters.

"Taiwan's position in the global supply chain cannot be ignored, and we will continue to maintain this advantage."

Trump, who previously accused Taiwan of stealing the US chip industry, has threatened several key trade partners with tariffs in an attempt to drive companies to shift manufacturing to the United States.

Speaking at a Republican congressional retreat in Miami on Monday, Trump warned the United States will soon place tariffs on foreign-made semiconductor chips, pharmaceuticals and metals such as steel.

The levies could be implemented in the "very near future" so as to "return production of these essential goods to the United States of America", he said.

"They left us and they went to Taiwan... which is about 98 percent of the chip business... and we want them to come back," he added.

"The incentive is going to be they're not going to want to pay a 25, 50 or even 100 percent tax."

Trump has previously criticised the CHIPS Act, a major law passed during former president Joe Biden's tenure aimed at strengthening the US semiconductor industry and reducing the country's reliance on Asian suppliers, including Taiwan.

The United States finalised a deal to award Taiwanese chipmaking giant TSMC up to $6.6 billion in direct funding to help build "state-of-the-art facilities in Arizona", officials said in November.

Similar deals were struck with US chipmakers GlobalFoundries, Intel and South Korea's SK Hynix before Trump took office, ensuring the funds can start flowing as companies reach milestones.

TSMC, which is the world's largest chipmaker, has long been under pressure to move more of its production away from Taiwan, where the bulk of its fabrication plants are located.

While Taiwan is a self-ruled island, China claims it as part of its territory and has threatened to use force to bring it under its control.

TSMC's new factories overseas include three planned in the United States and one that opened in Japan last year.

J.Horn--BTB