Taiwan emphasises strong ties amid Trump’s tariff threat

TSMC’s $65 billion investment highlights Taiwan’s commitment to US economic cooperation.
TSMC reported a 60% year-on-year profit jump in Q1 2025, driven by strong AI chip demand despite weaker smartphone sales and looming tariff threats.

Taiwan described its semiconductor business with the US as a mutually beneficial partnership in response to tariff threats by Donald Trump. The economy ministry highlighted the complementary relationship between US-designed and Taiwan-produced chips, which has bolstered industries in both nations.

Trump proposed tariffs on imports of chips, pharmaceuticals, and steel, aiming to bring production to US soil. Taiwan stressed its commitment to close cooperation with Washington to address global challenges while supporting shared national interests. The presidential office reinforced this sentiment, emphasising trust and collaboration in high-tech fields.

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, remains central to the global tech supply chain. Despite tariff concerns, TSMC’s ongoing $65 billion investment in US facilities demonstrates a commitment to bilateral cooperation. Taiwan’s economy minister noted minimal expected impact from tariffs due to the island’s technological leadership.

Taiwan’s trade surplus with the US surged 83% last year, fuelled by semiconductor demand. While Taiwan remains cautious about evolving US trade policies, it remains optimistic about maintaining robust economic ties.