Taiwan Says TSMC’s US Investments Help with Trade Balance
Taiwan Semiconductor Manufacturing Co.’s tens of billions of dollars of investments in the US help reduce the archipelago’s trade surplus with its primary security partner, a senior Taiwanese official said, as export-reliant economies brace for US President-elect Donald Trump, who is threatening additional tariffs on imports.
Taiwan Semiconductor Manufacturing Co.’s tens of billions of dollars of investments in the US help reduce the archipelago’s trade surplus with its primary security partner, a senior Taiwanese official said, as export-reliant economies brace for US President-elect Donald Trump, who is threatening additional tariffs on imports.
Taiwan can further cut its surplus in bilateral trade with the US by buying more energy, agricultural produce and weapons from America, central bank Governor Yang Chin-long told lawmakers on Thursday. He was responding to concerns that the incoming Trump administration could seek to penalize Taipei for its roughly $50 billion trade surplus.
“Our semiconductor and tech products are strategic goods, and US-Taiwan trade has been mutually beneficial,” Yang said. “The US comes up with designs, and we help them with manufacturing. They need our products.”
In a written report provided to lawmakers on Wednesday, the central bank said Taiwan’s growth momentum may be affected by changes in the global supply chain in response to any hikes in US tariffs.
In addition to TSMC, the go-to chipmaker for Apple Inc. and Nvidia Corp., Taiwan is also home to major electronics contract manufacturers including Hon Hai Precision Industry Co. and Quanta Computer Inc., which plays a pivotal role in making servers for developing artificial intelligence.
Read: AI’s $1.3 Trillion Future Increasingly Hinges on Taiwan
However, Trump has repeatedly accused Taiwan of stealing the semiconductor business from America, including in an interview with Bloomberg Businessweek, and he has demanded Taipei pay for US protection.
As president in 2017, Trump signed an executive order asking federal agencies to review partners that are causing a trade deficit for the US, including Taiwan, although that did not trigger any substantial action against Taipei back then.
Still, the Trump administration in 2020 managed to convince TSMC to make advanced semiconductors on American soil. The Taiwanese chipmaker has so far pledged more than $65 billion in investments with the Biden administration promising billions in financial support.
This article was generated from an automated news agency feed without modifications to text.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
MoreLess
First Published:14 Nov 2024, 11:52 AM IST
- Top Gainers
- Top Losers
- 52 Week High