Taiwan to Simulate U.S. Tariff Impact on Semiconductor Industry

Taiwan plans to simulate the impact of potential U.S. tariffs on its semiconductor industry and engage in talks with Washington. The Trump administration's probe into chip imports raises security concerns. Taiwan's Economy Minister emphasizes the complementary nature of U.S. and Taiwanese chip sectors.

Taiwan is preparing to assess the repercussions of potential U.S. tariffs on its semiconductor industry, as announced by the island's economy minister. This move comes in response to the Trump administration's investigation into the import of chips and pharmaceuticals, citing national security threats from foreign reliance.

The U.S.'s heavy dependence on Taiwanese chip imports has been a concern, with efforts made during former President Joe Biden's term to mitigate this by encouraging domestic chip production through the Chips Act. Economy Minister Kuo Jyh-huei expressed plans to address the matter with U.S. officials, aiming for fair competition within the industry.

Highlighting the complementary relationship between Taiwanese and U.S. chip sectors, Kuo indicated that Taiwan would conduct simulations to gauge tariff impacts. Taiwan is home to TSMC, a key player in the global chip market and a major supplier to companies like Apple and Nvidia, who are planning significant U.S. investments.

(With inputs from agencies.)