The Semi-Conductor Chip Industry and Taiwan

Taiwan pledged to invest more in the U.S.

after President Donald Trump vowed to impose sweeping tariffs on foreign countries

Taiwan’s President Lai Ching-te said Friday that his country would communicate more with the U.S. about Trump’s concerns over the semiconductor chip industry and would also invest more in the U.S., according to multiple reports.

The Taiwanese president’s announcement came after Trump signed a presidential memorandum on Thursday outlining a plan to impose “reciprocal” and “fair” tariffs on U.S. trading partners across the globe.

“Gone are the days of America being taken advantage of: this plan will put the American worker first, improve our competitiveness in every area of industry, reduce our trade deficit, and bolster our economic and national security,” Trump wrote in the memorandum.

Trump said on Thursday that he believes Taiwan has taken away the semiconductor chip industry from the U.S. Notably, Taiwan is home to the world’s most valuable chipmaker, the Taiwan Semiconductor Manufacturing Company (TSMC), which produces advanced chips that can be used in applications such as computers, smartphones and artificial intelligence systems. In the third quarter of 2024, TSMC recorded a market share of 64.9% in the global semiconductor foundry market.

We used to be top dog in chip manufacturing but due to the "combination of top-tier engineers, relatively lower labor cost and long working hours, Taiwan has led to better productivity,” Konrad Young, a former research and development director at TSMC added that Taiwan’s comprehensive tech ecosystem is another crucial component of the island’s chip prowess.

Read about Taiwan's semiconductor chip

Semiconductors were invented in the United States but now most chips are manufactured elsewhere...we lost the edge due to Taiwan's originality, advancement, and modernization. Silicon Valley was the place years ago and my husband was an engineer there. Everyone prospered as well as California.