Taiwan’s Economy Minister Kuo Jyh-huei has dismissed former U.S. President Donald Trump’s accusations regarding Taiwan’s role in the semiconductor industry. Trump had previously asserted that Taiwan ‘should pay us for defense’ and had ‘taken American semiconductor business,’ comments that unnerved the democratically governed island.
Kuo, addressing reporters ahead of the Semicon Taiwan exhibition, firmly rejected Trump’s claims. He clarified that Taiwan’s contribution to the global chip industry lies in its manufacturing capabilities, complementing the U.S. chip industry by producing chips as commissioned by American companies. He attributed Trump’s misstatements to a misunderstanding, possibly due to misinformation from associates or competitors.
TSMC, the world’s largest contract chipmaker, has been at the center of this controversy. Despite Trump’s accusations, TSMC is actively expanding its operations globally. The company is investing billions of dollars in new factories overseas, including a significant $65 billion investment in three plants in Arizona. While this expansion is a crucial part of the Biden administration’s efforts to enhance domestic chip production and reduce reliance on foreign manufacturers, TSMC has emphasized that the majority of its manufacturing will remain in Taiwan.
The U.S. Congress’s recent approval of the Chips and Science Act, allocating $52.7 billion for research and manufacturing subsidies, further underscores the importance of bolstering the domestic semiconductor industry.
Taiwan’s close relationship with the U.S. has been evident throughout recent administrations. The Trump administration provided significant support to Taiwan, including arms sales, which have continued under President Joe Biden. Trump’s 2016 phone call with then-Taiwanese President Tsai Ing-wen, although met with anger from Beijing, highlighted the close ties between the two nations. While the U.S. does not officially recognize Taiwan’s government, Taiwan’s government firmly rejects China’s sovereignty claims.
