Former U.S. President Donald Trump, who is pursuing another term in the White House, asserted that Taiwan should compensate the United States for its defense efforts, likening the relationship to that of an insurance company. In an interview with Bloomberg Businessweek published Tuesday, Trump remarked, “Taiwan doesn’t give us anything,” in response to whether he would defend Taiwan against China.
Beijing views Taiwan as part of its territory, with Chinese President Xi Jinping previously describing reunification with the mainland as “a historical inevitability.” Trump’s comments also touched on Taiwan’s pivotal role in the global semiconductor industry. He noted that Taiwan “took about 100% of our chip business,” highlighting how the U.S. once led in semiconductor manufacturing before companies moved production to Taiwan’s highly advanced facilities.
TrendForce data indicates that Taiwan will produce 66% of the world’s most advanced chips in 2024, while the U.S. will account for just 6%. The world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), plays a crucial role, manufacturing chips for leading American firms like Apple and Nvidia. Following Trump’s remarks, TSMC shares declined by 2.4% in Taiwan.
Concerns have been mounting over the heavy reliance on Taiwan for chip manufacturing and the potential impacts if China were to attack. TSMC Chair Mark Liu stated in 2022 that an invasion would render TSMC’s factories “not operable.”
Under the Biden administration, moves have been made to bring more chip manufacturing back to the U.S., with grants encouraging companies like TSMC and Samsung to expand domestic production. Trump criticized this strategy, suggesting that even with U.S. investments, these companies might ultimately repatriate their operations back to Taiwan.
This report updates the publish date of Trump’s interview in Bloomberg Businessweek.
Original Story https://www.cnbc.com/2024/07/17/trump-says-taiwan-should-pay-the-us-for-defense-shares-of-tsmc-fall.html
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