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President of Taiwan has vowed to enhance procurement and investment in the US to address Donald Trump’s global tariff threats and the challenges facing Taiwan’s semiconductor sector.
“We will increase investment and purchases from the US to balance our bilateral trade,” stated Lai Ching-te during a press conference on Friday, shortly after the US president revealed intentions to impose “reciprocal tariffs” on nations with significant trade deficits with the US.
The US trade deficit with Taiwan, which ranks as its seventh-largest trading partner, expanded by $26.1 billion to reach $73.9 billion last year, largely due to rising demand for advanced artificial intelligence chips. Most of these chips are produced by Taiwan Semiconductor Manufacturing Company, the world’s leading chipmaker.
Nonetheless, Lai affirmed Taiwan’s crucial position in global chip production and countered Trump’s assertions that the semiconductor industry, which the US president has accused Taiwan of “stealing,” should be brought back to America.
“I want to emphasize that Taiwan, as the world’s foremost semiconductor [manufacturing] powerhouse, is equipped and ready to adapt to new challenges,” declared Lai.
He promised to “safeguard Taiwan’s essential role in the global supply chain” and proposed a “global semiconductor democratic supply chain initiative” to assist the US in building more resilient supply chains—a collaborative approach that differs from Trump’s protectionist policy focused on consolidating the industry domestically.
Under pressure from both the Trump and Biden administrations, along with the demands of US clients, TSMC has pledged to invest $65 billion in three fabrication facilities in Arizona, with the first site already in mass production. While these facilities will constitute less than a fifth of TSMC’s overall capacity when finished, they represent the company’s largest overseas investment.
However, Trump has threatened to revoke the subsidy agreements established by his predecessor, which could jeopardize over $6 billion in financial support for TSMC. Trump also aims to significantly expand chip manufacturing in the US.
During his announcement of the latest tariff strategy on Thursday, Trump reiterated claims that Taiwan “took our chip business away”.
“We want that business back in the United States,” he remarked, “and if they don’t bring it back, we’re not going to be very happy.”
Lai on Friday reiterated that Taipei is the US’s “most reliable trading partner” and highlighted the shared democratic principles between the two nations.
However, he indicated that the current Trump administration is pursuing “strategies and policies that starkly contrast with those of the past,” which presents challenges for all other nations, including Taiwan.
