However, Trump has accused Taiwan of stealing the semiconductor business from the US and demanded payment for US protection. Despite this, TSMC has pledged over $65 billion in investments in the US, with the Biden administration promising financial support. The central bank warns that Taiwan's growth may be affected by changes in the global supply chain due to potential US tariff increases.
Key takeaways:
- Taiwan Semiconductor Manufacturing Co.’s investments in the US help reduce Taiwan’s trade surplus with its primary security partner, according to a senior Taiwanese official.
- Taiwan can further reduce its surplus in bilateral trade with the US by buying more energy, agricultural produce and weapons from America, says central bank Governor Yang Chin-long.
- Taiwan's growth momentum may be affected by changes in the global supply chain in response to any hikes in US tariffs.
- The Trump administration in 2020 managed to convince TSMC to make advanced semiconductors on American soil, with the Taiwanese chipmaker pledging more than $65 billion in investments.