Taiwan’s central bank chief said Thursday he doubts the new administration of U.S. President-elect Donald Trump will penalize Taiwan given the island’s central role in the semiconductor industry.
Mr Trump troubled Taiwan during his election campaign by accusing it of stealing the US chip market. Mr. Trump also proposed 10% tariffs on all U.S. imports and a 60% tax on goods made in China.
Responding to questions from lawmakers, Taiwan Central Bank Governor Yang Chin-long said semiconductors and other technology products made on the island were materials of such strategic importance as their supply chain. supply should not be disrupted. “Chips and information and telecommunications products are what the United States needs most,” Yang said. “I don’t think the United States would penalize Taiwan.
Cooperation between Taiwan and the United States in the field of chips is beneficial to both sides, he added.
“They design them and we make them,” Mr. Yang said.
During his first term as president, Mr. Trump imposed tariffs on China but spared Taiwan. Taiwan, home to tech giants such as chipmaker TSMC, is a major supplier to global titans such as Apple and Nvidia and is seen as a bellwether for global demand for technology.
However, the governor also said that if Trump’s proposed new tariffs were to take effect, it would impact Taiwan’s export-dependent economy, a risk the central bank flagged in a report to parliament on Wednesday .
Taiwan also runs a sizable trade surplus with the United States, expected to reach $50 billion this year, according to Yang.
Yang said that in addition to buying more goods from the United States, TSMC’s investment there could also help reduce the trade imbalance.
TSMC is spending $65 billion to build new factories in the US state of Arizona.
The United States is Taiwan’s main international financier and arms supplier, even without formal diplomatic relations.
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