US President Donald Trump lashed out at Taiwan for undermining the US chip sector, sparking renewed unease in the global semiconductor industry despite the island’s earlier pledge to invest heavily in the US.
“Taiwan came [into the chip sector and] they stole our chip business,” Trump said in a press conference on Saturday following the US Supreme Court’s ruling that he had exceeded his authority by imposing sweeping tariffs under a law designated for national emergencies.
Trump directed his ire at Taiwan’s chip industry after the Supreme Court ruled in a 6-3 decision that his import tariffs violated the 1977 International Emergency Economic Powers Act, invalidating many of his tariffs.
Trump has repeatedly claimed in the past that Taiwan stole the US’ chip business. Earlier this year, Taiwan committed to invest US$500 billion in return for lower tariffs of 15 per cent from 20 per cent.
Taiwan’s TSMC is one of the world’s largest chipmakers. Photo: EPA
Zhou Yonghong, a politician from Taichung city in central Taiwan, said on TV that the US tariff ruling could “make China very happy” while dealing a blow to Taiwan, which made a lot of efforts to reach a tariff agreement with the US.
At the press conference, Trump said that Taiwan had edged out some of America’s one-time chip champions, including Intel that would have been the world’s largest, adding that Taiwanese companies were setting up factories in Arizona, Texas and other US states only because they did not want to pay tariffs.