Taiwan expects small impact from Trump tariffs on chip exports By Reuters

By Wen-Yi Lee

TAIPEI (Reuters) – Taiwan expects only a small impact from the incoming administration of U.S. President-elect Donald Trump on semiconductor exports, given their technological superiority, Economy Minister Kuo Jih-hui said on Friday.

The island is home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), a key link in the global technology supply chain for companies such as Apple (NASDAQ:) and Nvidia (NASDAQ:) :

But Taiwanese politicians have warned that the Trump administration’s new US tariffs against all countries could curb economic growth this year for the export-dependent economy.

Trump has promised a 10% overall tariff on global imports and a much higher 60% tariff on Chinese goods.In late November, he specifically promised to impose 25% tariffs on imports from Canada and Mexico when he takes office on January 20.

Asked at a press conference about the impact of Trump’s tariffs on Taiwan’s export orders, Kuo said it would not have a major impact on the chip industry.

“There is a technology lead advantage for our semiconductors and advanced processes that cannot be replaced and therefore the impact will be small,” he added.

Taiwan will also help companies move supply chains to the US if necessary, away from where there may be high import tariffs, Kuo said.

“Now we see that we need to be able to develop the aerospace supply chain industry in the United States and by joining with US aerospace companies to move some of Taiwan’s aerospace research and development centers there.”

Taiwan will also open an office in Japan in the first half of this year to help Taiwanese businesses invest there and cooperate with the country on artificial intelligence and drones, he added.