Taiwan's Strategic Response to U.S. Tariffs on Semiconductors

Taiwan plans to assess potential U.S. tariffs on its semiconductor industry and negotiate with Washington for fair competition. The U.S. examines imposing tariffs on chip imports for national security reasons. Taiwan emphasizes its complementary role with U.S. technology giants, while TSMC announces substantial U.S. investments.

Taiwan is preparing to simulate the effects of potential U.S. tariffs on its semiconductor sector and engage in talks with Washington to address the issue, according to the island's economy minister.

The Trump administration had initiated an investigation into chip imports as part of a strategy to impose tariffs citing national security concerns, due to the heavy reliance on foreign-produced semiconductors. This dependence was targeted by former President Joe Biden through the Chips Act, allocating billions to encourage domestic chip production.

Speaking outside parliament, Economy Minister Kuo Jyh-huei emphasized discussions with the U.S. to achieve competitive fairness. He highlighted the complimentary nature of Taiwanese and American chip sectors.

Kuo mentioned that simulations would assess tariff impacts, and the exact levies would result from negotiations. Taiwan's TSMC, a vital supplier for Apple and Nvidia, recently announced a $100 billion U.S. investment, aligning with significant investment promises by tech giants in America.

(With inputs from agencies.)