Taiwan’s Ministry of Economic Affairs announced plans to simulate the potential impact of proposed US tariff on its semiconductor industry, amid escalating global concerns around trade and technology security. Economy Minister Kuo Jyh-huei confirmed on Tuesday that discussions with Washington will be initiated to ensure “fair competition” for Taiwanese companies.
The move follows the Trump administration’s latest investigation into the import of semiconductors and pharmaceuticals, citing national security risks linked to foreign dependency. The US is reportedly weighing new tariffs on chip imports, which could affect Taiwan — one of the world’s largest chip producers and a key exporter to American tech giants.
Taiwan-US Semiconductor Ties Remain Strong but Face Tariff Risk
Minister Kuo emphasized the complementary nature of US and Taiwanese chip sectors. “We will try as hard as possible to communicate with the US side,” he told reporters, noting that the actual level of tariffs would depend on bilateral negotiations.
Taiwan is home to TSMC (Taiwan Semiconductor Manufacturing Company), the world’s largest contract chipmaker and a critical supplier for Apple, Nvidia, and other US firms. While the US has sought to localize more chip production through the CHIPS Act and related incentives, Taiwanese firms remain central to US AI and semiconductor ambitions.
TSMC, Apple, Nvidia Continue Deepening US Investment
Despite the looming tariff concerns, the relationship between US tech leaders and Taiwan’s chipmakers remains robust. On Monday, Nvidia announced plans to build AI servers worth up to $500 billion in the US over the next four years, in partnership with TSMC. Apple also pledged a half-trillion-dollar investment in US infrastructure in February.
Meanwhile, TSMC last month revealed an additional $100 billion investment in its US operations, reinforcing its commitment to global expansion even amid policy uncertainties. TSMC shares in Taiwan rose 1.4% on Tuesday, slightly trailing the broader TWII market index’s 1.8% gain.
Taiwan’s proactive engagement with the US signals a careful balancing act: preserving its role in the global chip supply chain while safeguarding its economic interests amid rising geopolitical tensions.
