Trump has accused Taiwan of taking the chip business away from the United States.
Taiwanese President Lai Ching-te on Friday pledged to strengthen communication with the U.S. government to address President Donald Trump’s concerns about the chip industry while also vowing to increase investment in the United States.
Trump said on Thursday that all chip production had moved to Taiwan from the United States and that he wanted to bring manufacturing back to the country.
“With respect to President Trump’s concerns about our semiconductor industry, the government will act prudently, strengthen communications between Taiwan and the US, and promote greater mutual understanding,” Lai said during a press conference with reporters, shortly after holding a National Security Council meeting at the presidential office.
Lai said the self-governing island is willing to collaborate with the United States and its other democratic partners to develop “more resilient and diversified semiconductor supply chains.”
Taiwan will introduce global semiconductor supply chain partnerships for democratic governments, he said.
Taiwan is home to the world’s largest contract chipmaker, TSMC, a major supplier to companies including Apple and Nvidia, and is a key part of the rapidly developing artificial intelligence (AI) industry.
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“Leveraging our strengths in cutting-edge semiconductors, we will form a global alliance for the AI chip industry and establish democratic supply chains for industries connected to high-end chips,” Lai said. “Through international cooperation, we will open up an entirely new era of growth in the semiconductor industry.”
The Taiwanese leader also pledged to expand investment and procurement in the United States, noting that over the past two years, investments in the United States have accounted for more than 40 percent of Taiwan’s total foreign investment, far surpassing its investments in China.
Taiwan will also increase cooperation with the United States in tech development and manufacturing for AI and advanced semiconductors, Lai said.
He added that Taiwan’s government will “continue to communicate and negotiate closely” with the U.S. government.
Keeping those lines of communication open will help the Trump administration “better understand how Taiwan is an indispensable partner in the process of rebuilding American manufacturing and consolidating its leadership in high-tech,” Lai said.
Trump Says Taiwan ‘Took Our Chip Business Away’
Trump spoke to reporters at the White House on Thursday after signing a presidential memorandum ordering reciprocal tariffs on all U.S. trading partners to “correct longstanding imbalances in international trade and ensure fairness across the board.”
The president signaled out Taiwan, telling reporters: “Right now, everything is made in Taiwan practically, almost all of it … and we want those companies to come to our country.”
He said Taiwan “took our chip business away,” and pointed to the U.S. semiconductor manufacturing giant, Intel.
“We had Intel, we had these great companies that did so well, and it was taken from us and we want that business back,” Trump said. “We want it back in the United States, and if they don’t bring it back, we’re not going to be very happy.”
Trump told House Republicans in January that his administration would impose tariffs of up to 100 percent on imported semiconductors, computer chips, and pharmaceuticals in “the very near future” as part of efforts to bring production back home.
Speaking from the White House on Thursday, Trump defended his tariff plans, telling reporters that while it may drive prices up short term, ultimately, those prices will come back down. He added that the tariffs will also lead to increased job opportunities in the United States.
The Associated Press and Reuters contributed to this report.
