Taiwan’s Economics Minister Kuo Jyh-huei has urged the United States to rely on Taiwan to revitalize its semiconductor manufacturing industry. In a recently submitted position paper, Taiwan highlighted the strong and complementary trade and technology ties between the two countries. Kuo emphasized that Taiwan plays a critical role in the global semiconductor ecosystem.
The US Commerce Department recently launched a Section 232 investigation to assess how semiconductor imports affect US supply chain security. This investigation could lead to new tariffs or trade restrictions. The public comment period for the probe closed on May 7, with stakeholders providing input. Taiwan responded by clarifying its role and the mutual benefits of US-Taiwan economic relations.
Kuo also addressed the potential impact of tariffs on Taiwanese manufacturers. While Taiwan’s chip producers remain confident despite President Trump’s proposed tariffs, they worry about being taxed more heavily than competitors like Japan and South Korea. For instance, the proposed tariffs include 32% on Taiwanese goods, 25% on South Korean products, and 24% on Japanese imports. Notably, the tariff plan is currently on hold for 90 days.
Moreover, Kuo believes South Korea’s Samsung will face the biggest challenges under these tariffs. Unlike TSMC and Intel, Samsung has not built an advanced semiconductor plant in the US. Therefore, Samsung may struggle more than Taiwan’s manufacturers in adjusting to new trade policies.
Furthermore, Kuo stressed Taiwan’s semiconductor industry holds a unique advantage. TSMC, Taiwan’s leading chipmaker, is expected to remain dominant over the next decade. As a contract manufacturer, TSMC produces chips for many US companies. Consequently, tariffs would raise costs for these American customers.
TSMC has asked its clients to lobby the US government against tariffs. Kuo warned that without support, the price of products like the iPhone could increase in the US. He stressed this outcome would harm American consumers and the overall supply chain.
In summary, the message remains clear: the US must rely on Taiwan to revitalize chip manufacturing. This key phrase captures the essence of Taiwan’s position in supporting the US semiconductor industry and protecting its own competitive edge. Taiwan seeks to maintain strong trade relations and ensure a secure, advanced chip supply chain for both countries.
