In a recent The Joe Rogan Experience interview, former president Donald Trump reignited an ongoing debate by claiming Taiwan had “stolen”, America’s semiconductor manufacturing industry.
Trump’s remarks are a repeat of previous accusations, claiming that Taiwan has taken over a technology vital to the US economy.
Experts argue that Taiwan’s dominance is not the result of theft, but of an innovative business model with decades of investment.
As the race for the 2024 US presidency intensifies, the attention on Taiwan’s chip industry–led Taiwan Semiconductor Manufacturing Company(TSMC)- raises questions about the impact of Trump’s possible return to office on the global chip sector.
Trump’s perspective on tariffs and “protection fees”
Trump’s comments reflect concerns about American dependence on Taiwan’s semiconductor production.
During the interview he criticised the CHIPS Act and suggested that US funds shouldn’t be used to benefit firms from abroad who set up domestic plants.
If re-elected Trump proposed enacting a tariff on Taiwanese chip manufacturers, TSMC in particular, which manufactures chips used by tech giants such as Apple and Nvidia.
According to CNN, he even suggested that Taiwan pay the US for their defense. Taiwanese officials rejected this idea as an unwelcome “protection fee”.
TSMC shares fell by 4.3% as a result, highlighting the market’s sensitivity to geopolitical tensions.
Taiwan’s semiconductor success
Experts counter Trump’s accusations, pointing out that Taiwan’s semiconductor industry was born from foresight and strategy planning rather than by “stealing” American technologies.
Morris Chang founded TSMC in 1987. It was the first “pure play foundry”.
TSMC did not design its own chips. Instead, it focused on manufacturing them for other companies. This was a novel approach.
This allowed TSMC the ability to scale production and attract clients from all sectors. It also helped TSMC become a key player in the global semiconductor industry.
CNN quoted Christopher Miller, the author of Chip War : The Fight for the World’s Most Critical Technology as saying that “TSMC’s Success stems from a Focus on Manufacturing Excellence and Economies of Scale, Not from Taking Anything from the US.”
This manufacturing-focused approach, paired with Taiwan’s ecosystem of skilled engineers, has made it the world’s leading supplier of advanced chips, producing over 90% of global output, according to the Semiconductor Industry Association.
Intel and Samsung’s attempts to copy TSMC’s model of foundry show how Taiwan’s semiconductor growth was organic, rather than opportunistic.
Why US companies rely on TSMC
TSMC’s advanced production is vital to US technology giants such as Amazon, Microsoft and Google, despite Trump’s criticism.
The threat of a conflict between China and Taiwan heightened US interest to reduce this dependency. Initiatives like the CHIPS Act signed by President Joe Biden 2022 aimed at increasing US chip production.
It is not easy to build a domestic semiconductor production base. Intel and other companies are faced with high costs, labor shortages and regulatory challenges. This highlights the complexity of Trump’s drive to bring chip manufacture home.
TSMC faces challenges in expanding into the US.
The company is building three Arizona facilities, but has experienced delays due to differences in the work culture and labor laws.
“TSMC must adjust its operations to fit local cultures and labor systems if they truly want to become a global business,” said former TSMC R&D Director Konrad Young.
US-Taiwan chip dilemma
If Trump were to impose a tariff on Taiwanese Semiconductors, it could complicate the supply chain and increase costs in the tech sector.
Citi analysts noted that tariffs will require extensive audits due to the complex composition of electronic devices.
History shows that a trade conflict could lead to retaliation by China, as was seen when Beijing restricted American Micron’s market access in China during previous tensions.
A Trump presidency, on the other hand, could favor American chip makers like Intel and Texas Instruments. This could reshape the competitive landscape of the industry.
Taiwan’s role is essential as the US struggles to secure its chip supply.
Trump’s remarks highlight the challenges of reducing reliance on foreign chipmakers, while balancing geopolitical concerns.
TSMC continues to grow its influence in the global technology landscape.
Konrad Young argues that the key to any successful growth will be in cooperation, not competition. This will create an environment where US and Taiwanese companies can thrive, creating a sustainable future for semiconductors.
In the broader debate about semiconductor dominance, Taiwan’s path illustrates a model that rivals want to emulate and not replace.
While Trump’s claims are making headlines, experts in the industry agree that Taiwan did not steal America’s chips industry. It built one which has become the envy around the world.
This post Does Taiwan really steal the US chip industry, as Trump claims? This post may be updated as new information unfolds
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