By Wen-Yee Lee
TAIPEI (Reuters) – Taiwan expects little impact from any tariffs imposed by U.S. President-elect Donald Trump’s new administration on semiconductor exports given their technological superiority, Economy Minister Kuo Jyh-huei said on Friday.
Home of the world’s largest contract chip manufacturer, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is a key link in the global technology supply chain for companies such as Apple (NASDAQ: ) and Nvidia (NASDAQ: ).
But Taiwanese policymakers have warned that new US tariffs against all countries from the Trump administration could limit economic growth this year for the export-dependent economy.
Trump has promised a blanket tariff of 10% on global imports into the United States and a much higher tariff of 60% on Chinese goods. In late November, he specifically promised a 25% tariff on imports from Canada and Mexico when he takes office on January 20.
Asked at a news conference about the impact of Trump’s tariffs on Taiwan’s export orders, Kuo said it would not affect the chip sector much.
“For our semiconductors and advanced processes, there is an advantage of technology leadership and that cannot be replaced, so the impact will be small,” he added.
Taiwan will also help companies move supply chains to the United States if needed, away from where high import tariffs might exist, Kuo said.
“Now we see that we should be able to develop an aerospace supply chain industry in the United States and partner with American airlines, so some of Taiwan’s aerospace research and development centers can move there.”
Taiwan will also open an office in Japan in the first half of this year to help Taiwanese companies invest there and cooperate with the country on artificial intelligence and drones, he added.
