((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
Taiwan will help companies relocate production from China given the likely significant impact on them of tariffs that new US President Donald Trump has promised to impose on the country, Economy Minister Kuo Jyh said on Thursday -huei.
The threat by Mr. Trump, who will take office in January, to impose 60% tariffs on American imports of Chinese products poses major risks to the growth of the world's second largest economy.
Taiwanese companies have invested billions of dollars in China over the past four decades, taking advantage of historically lower costs, but the Taiwanese government, aware of increased pressure from Beijing to accept China's sovereignty claims, encouraged its companies to move their investments elsewhere.
Speaking in Parliament, Mr Kuo said the impact of Mr Trump's tariffs on China on Taiwanese companies manufacturing there would be “quite significant”.
“We will as soon as possible help Taiwanese companies move their production bases,” he added, without giving details.
Mr Kuo was also asked by lawmakers about fears Mr Trump would cancel subsidies to TSMC
2330.TW, the world's largest contract chipmaker, which is investing $65 billion in the US state of Arizona to build new factories.
Kuo said there was a contingency plan, including helping more supply chain companies set up shop in the United States.
“It is a trend for TSMC to continue to increase its investments in the United States,” he said.
TSMC has not yet commented on any concerns it may have regarding the subsidies. Its Taipei-listed shares rose about 1% on Thursday morning.
Taiwanese company GlobalWafers 6488.TWO, which is investing $4 billion in the United States, told Reuters it expected grants under the Chips and Science Act, which aims to encourage investments by chip manufacturers in the United States, be maintained under the new American administration.
“Multi-year and 10-year programs such as the CHIPS Act and the agreements we have signed are regularly rolled over from one administration to the next,” the company said in a statement Thursday.
“We expect the CHIPS program to be no different and to proceed smoothly under the Trump administration”
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