Taiwan To Simulate Impact Of U.S. Tariffs On Semiconductors

Taiwan will simulate the potential impact of U.S. tariffs on its semiconductor industry and seek discussions with Washington, the island’s economy minister said, Ben Blanchard reported for Reuters.

The U.S. relies significantly on chips from Taiwan.

The Trump administration is considering tariffs on semiconductor and pharmaceutical imports, citing national security concerns over the U.S.’s heavy dependence on foreign-made chips and medicines.

The U.S. relies significantly on chips from Taiwan—a dependency former President Joe Biden tried to reduce by offering billions in CHIPS Act incentives to attract semiconductor manufacturing back to the U.S.

Taiwanese Economy Minister Kuo Jyh-huei said he plans to engage in talks with U.S. officials to ensure "fair competition" and emphasized that the U.S. and Taiwanese semiconductor sectors are complementary.

“As to how much [the tariffs] could be, we will of course carry out simulations,” Kuo said. “On the tariffs issue, we will try as hard as possible to communicate with the U.S. side.”