US Treasury Secretary Scott Bessent emphasized that the United States must de-risk reliance on Taiwan. He warned that Taiwan’s dominance in advanced semiconductor production poses a major national security threat. Bessent compared the situation to the 1973 Arab Oil Embargo, saying the US cannot depend on a single region for critical technology.
On Fox News’ “Mornings with Maria,” hosted by Maria Bartiromo, Bessent outlined strategies to strengthen critical industries. He explained that semiconductors are essential for national defense, economic stability, and technological leadership. He added that the pandemic revealed vulnerabilities in several key sectors, highlighting the urgency to de-risk reliance on Taiwan.
Bessent stated that companies like Nvidia do not require government support. However, he said the US might acquire stakes in other strategic industries. For example, shipbuilding is a sector where self-sufficiency is crucial. He described the pandemic as a “beta test” that showed how supply chain disruptions could affect national security.
He emphasized, “99% of advanced chips are manufactured on Taiwan.” This concentration creates a strategic vulnerability. Therefore, the US must act immediately to de-risk reliance on Taiwan. He said that diversifying production will protect the country from future disruptions and strengthen critical infrastructure.
Bessent also praised steps initiated under the Trump administration to reduce strategic risks. He criticized previous administrations for neglecting these vulnerabilities. He argued that proactive measures now could deliver long-term benefits for taxpayers while securing essential technologies.
When asked if government intervention would affect companies like Intel, Bessent reassured that most semiconductor firms are performing well. Still, he warned that heavy dependence on Taiwan remains a pressing concern. Policymakers must act to de-risk reliance on Taiwan to prevent future crises.
Finally, Bessent framed reducing dependence on foreign suppliers as a national security priority. He stressed that diversifying production and investing in domestic capabilities will strengthen the US economy, defense readiness, and global competitiveness.
The US government now considers de-risking Taiwan dependence a strategic necessity. Officials aim to reduce vulnerabilities while ensuring critical technologies remain accessible. Bessent concluded that decisive action will help the US maintain leadership in semiconductors and protect national interests.
