Trump ‘has a lot on his plate’, misunderstands Taiwan’s chip role, says minister By Reuters

TAIPEI (Reuters) – Former U.S. President Donald Trump “has a lot on his plate” and misunderstands Taiwan’s role in the semiconductor industry, possibly because others have misinformed him, the island’s Economy Minister Kuo Jyh-huai said on Monday.

Trump, the Republican nominee in November’s presidential election, lashed out at democratically-ruled Taiwan, which is claimed by China, saying in July, “Taiwan should pay for our defense” and that it had taken US semiconductor business.

His remarks hit shares of Taiwan’s TSMC, the world’s largest chipmaker and a major supplier to companies such as Apple (NASDAQ: ) and Nvidia (NASDAQ: ).

Speaking to reporters in Taipei ahead of this week’s Semicon Taiwan trade show, which will be attended by top executives from TSMC, Samsung ( KS: ) and SK Hynix, Kuo dismissed Trump’s remarks.

“Taiwan did not steal the U.S. chip industry,” said Kuo, formerly chief executive of a TSMC supplier, Topco Scientific.

Taiwan is helping to complement the U.S. chip industry in manufacturing and producing chips as ordered by the U.S. industry, he added.

“This is a misunderstanding on Trump’s part. The president has a lot on his plate; maybe a friend or competitor in Taiwan told him that,” Kuo said.

TSMC is spending billions building new factories overseas, including $65 billion for three factories in the US state of Arizona, although it says most production will remain in Taiwan.

TSMC’s factories in Arizona are a crucial part of the Biden administration’s efforts to boost the chip supply chain and ensure that the United States is less dependent on foreign-made chips.

In 2022, the US Congress approved the Chips and Science Act to boost domestic semiconductor production with a program of $52.7 billion in research and manufacturing subsidies.

Taiwan received strong support from the 2017-2021 Trump administration, including arms sales, which continued under President Joe Biden’s administration.

Trump spoke with Taiwan’s then-president Tsai Ing-wen in 2016 shortly after winning the election, sparking anger in Beijing because the United States does not officially recognize Taiwan’s government and joy in Taipei.

Taiwan’s government rejects China’s claims of sovereignty.