Taiwan-US Semiconductor Industry: A Mutually Beneficial Model Despite Tariff Threats
The Taiwan Ministry of Economic Affairs has emphasized the complementary nature of the semiconductor industry between Taiwan and the United States, characterizing it as a "win-win" model that benefits both parties.
Taiwan, home to the world's leading chip manufacturer, Taiwan Semiconductor Manufacturing Co. (TSMC), plays a crucial role in the global technology supply chain. This complementarity between US design capabilities and Taiwan's advanced foundry model has fostered a thriving business environment.
Responding to recent tariff threats from US President Donald Trump, the ministry stated that it "will continue to monitor US policy and engage in close communication and cooperation to ensure that Taiwan's and US' industries and national interests can develop in a mutually beneficial manner amidst global challenges."
In 2020, TSMC announced a major investment of $65 billion to establish a factory in Arizona, a significant move supported by the US government's efforts to strengthen domestic tech manufacturing.
Despite potential challenges arising from trade deficit concerns raised by the Trump administration, the Taiwan Economy Minister remains optimistic about the impact on semiconductor exports due to their technological superiority.
Taiwan's trade surplus with the United States has significantly increased in recent years, driven by high demand for Taiwanese semiconductors. The strong semiconductor industry between Taiwan and the US is a testament to their shared interests in technology advancement and the benefits of collaboration.