Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump.
Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp.
Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US.
Photo: Reuters/Ann Wang
“Taiwan and the US semiconductor and other technology industries are highly complementary to each other, especially the US-designed, Taiwan-foundry model, which creates a win-win business model for Taiwan and US industries,” the Ministry of Economic Affairs said in a statement in response.
The ministry “will continue to pay attention to US policy going forward, and there will be close contact and cooperation between the two sides to ensure that Taiwan’s and US’ industries and national interests can develop in a mutually beneficial way in the face of global challenges.”
The Presidential Office, in a separate statement, said Taiwan and the US have "good mutual trust and a close relationship" when it comes to chips and high-tech cooperation, which it also called a "win-win situation."
In 2020, under the first Trump administration, TSMC announced that it would build a US$12 billion factory in Arizona in a win for efforts by the US government to wrestle global tech supply chains back from China. It later boosted those plans with the total investment now standing at US$65 billion. Even so, the bulk of TSMC's production remains in Taiwan, with exports to the US theoretically subject to tariffs.
TSMC declined to comment on Trump’s tariff remarks.
Earlier this month, Minister of Economic Affairs J.W. Kuo (郭智輝) said he only expected a small impact from any tariffs imposed by Trump on semiconductor exports given their technological superiority.
In another potential challenge for Taiwan, Trump last week directed federal agencies to investigate persistent US trade deficits and unfair trade practices and alleged currency manipulation by other countries.
Taiwan’s trade surplus with the US surged 83 percent year-on-year last year, with exports to the US hitting a record high of US$111.4 billion, driven by demand for high-tech products such as semiconductors.
SELL-OFF: Investors expect tariff-driven volatility as the local boarse reopens today, while analysts say government support and solid fundamentals would steady sentiment Local investors are bracing for a sharp market downturn today as the nation’s financial markets resume trading following a two-day closure for national holidays before the weekend, with sentiment rattled by US President Donald Trump’s sweeping tariff announcement. Trump’s unveiling of new “reciprocal tariffs” on Wednesday triggered a sell-off in global markets, with the FTSE Taiwan Index Futures — a benchmark for Taiwanese equities traded in Singapore — tumbling 9.2 percent over the past two sessions. Meanwhile, the American depositary receipts (ADRs) of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock on the TAIEX, plunged 13.8 percent in
A wave of stop-loss selling and panic selling hit Taiwan's stock market at its opening today, with the weighted index plunging 2,086 points — a drop of more than 9.7 percent — marking the largest intraday point and percentage loss on record. The index bottomed out at 19,212.02, while futures were locked limit-down, with more than 1,000 stocks hitting their daily drop limit. Three heavyweight stocks — Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Hon Hai Precision Industry Co (Foxconn, 鴻海精密) and MediaTek (聯發科) — hit their limit-down prices as soon as the market opened, falling to NT$848 (US$25.54), NT$138.5 and NT$1,295 respectively. TSMC's
TARIFFS: The global ‘panic atmosphere remains strong,’ and foreign investors have continued to sell their holdings since the start of the year, the Ministry of Finance said The government yesterday authorized the activation of its NT$500 billion (US$15.15 billion) National Stabilization Fund (NSF) to prop up the local stock market after two days of sharp falls in reaction to US President Donald Trump’s new import tariffs. The Ministry of Finance said in a statement after the market close that the steering committee of the fund had been given the go-ahead to intervene in the market to bolster Taiwanese shares in a time of crisis. The fund has been authorized to use its assets “to carry out market stabilization tasks as appropriate to maintain the stability of Taiwan’s
In a small town in Paraguay, a showdown is brewing between traditional producers of yerba mate, a bitter herbal tea popular across South America, and miners of a shinier treasure: gold. A rush for the precious metal is pitting mate growers and indigenous groups against the expanding operations of small-scale miners who, until recently, were their neighbors, not nemeses. “They [the miners] have destroyed everything... The canals, springs, swamps,” said Vidal Britez, president of the Yerba Mate Producers’ Association of the town of Paso Yobai, about 210km east of capital Asuncion. “You can see the pollution from the dead fish.
RSS