Former U.S. President Donald Trump, who is running for another term in the White House, has stated that Taiwan should pay the United States for its defense, arguing that the country \u201cdoesn\u2019t give us anything.\u201d His comments were made in response to a question about whether he would defend Taiwan against China during an interview with Bloomberg Businessweek published Tuesday.<\/p>\n
Trump likened the U.S. to an insurance company, suggesting that Taiwan should compensate the U.S. for its defense efforts. \u201cYou know, we\u2019re no different than an insurance company. Taiwan doesn\u2019t give us anything,\u201d he said.<\/p>\n
He also linked his remarks to Taiwan\u2019s semiconductor industry, one of the most advanced in the world, alleging, \u201c[Taiwan] did take about 100% of our chip business,\u201d although he provided no evidence for this claim.<\/p>\n
According to the Semiconductor Industry Association, Taiwan manufactures 92% of the world\u2019s advanced microchips. The U.S., which was once a leader in semiconductor manufacturing, now accounts for only 6% of global production due to industry trends that led to the rise of companies like Taiwan Semiconductor Manufacturing Co. (TSMC). TSMC, the world\u2019s largest and most advanced chipmaker, produces chips for major American companies such as Apple and Nvidia. Taiwan is projected to account for 66% of the production of the world\u2019s most advanced chips this year, according to TrendForce data.<\/p>\n
Following Trump\u2019s comments, shares of TSMC fell 2.4% in Taiwan.<\/p>\n
Concerns have been mounting over the global reliance on Taiwan for chip manufacturing, especially regarding the potential impact of a Chinese attack on the island. Beijing views Taiwan as part of its territory, and Chinese President Xi Jinping has called reunification with the mainland \u201ca historical inevitability.\u201d<\/p>\n
TSMC Chair Mark Liu warned in 2022 that a Chinese invasion would render TSMC\u2019s factories inoperable. \u201cNobody can control TSMC by force. If you take a military force or invasion, you will render TSMC factory not operable,\u201d Liu said.<\/p>\n
In response to these concerns, the Biden administration has been working to bring more chip manufacturing back to the U.S. through grants aimed at encouraging companies like TSMC and Samsung to expand their production facilities in America.<\/p>\n
Reflecting on the situation, Trump remarked, \u201cThey took almost 100% of our chip industry, I give them credit. We should have never let that happen.\u201d He also expressed skepticism about current efforts to incentivize chip production in the U.S., saying, \u201cNow we\u2019re giving them billions of dollars to build new chips in our country, and then they\u2019re going to take that too, in other words, they\u2019ll build it but then they\u2019ll bring it back to their country.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Trump\u2019s Remarks Lead to 2.4% Drop in Taiwan Semiconductor Manufacturing Co. Stock<\/p>\n","protected":false},"author":331,"featured_media":48193,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[165,750,95],"class_list":["post-48192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","tag-taiwan","tag-trump","tag-usa"],"reading_time":"3 min read","_links":{"self":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/users\/331"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/comments?post=48192"}],"version-history":[{"count":0,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/posts\/48192\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media\/48193"}],"wp:attachment":[{"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/media?parent=48192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/categories?post=48192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businessupturn.com\/usa\/wp-json\/wp\/v2\/tags?post=48192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}