Trump Demands Chip Industry Reshoring, Faces Resistance from Taiwan and Europe
US President Donald Trump has urged the semiconductor industry to shift more production back to the United States, accusing Taiwan of stealing the chip business from America. "Taiwan has taken our chip business," Trump declared at the White House. "We want it back in the USA. And if they don’t do it, we will not be very happy," he warned.
A Shift in Chip Manufacturing Power
Once the cornerstone of the industry, US chipmakers like Intel have seen a decline in their share of cutting-edge chip production, which has largely shifted to Taiwan. Industry experts attribute this trend to decades of generous government subsidies that have enticed manufacturers to the island nation.
Western Concerns over Supply Chain Vulnerability
The West is increasingly concerned about the fragility of the global supply chain for semiconductors, particularly given Taiwan’s precarious geopolitical position with China. Beijing has long claimed Taiwan as its own territory, leading to fears that any Chinese military action against Taiwan could disrupt the supply of vital components such as smartphone chips.
Taiwan’s Response: Cooperation and Assurance
In response to Trump’s demands, Taiwan’s President Lai Ching-te pledged cooperation with the US and other democratic partners in building a resilient and diversified semiconductor supply chain. "We are willing to work together to strengthen the security of the global semiconductor supply chain," he told reporters.
Taiwanese officials emphasized the island’s indispensable role in bolstering US leadership in high-tech industries. They stressed the importance of close collaboration with Washington to ensure that the US government recognizes Taiwan’s strategic value.
TSMC’s Silence and Intel’s Struggles
TSMC, the Taiwanese chipmaking giant, declined to comment on Trump’s statements. Intel, on the other hand, has been struggling for years to catch up with TSMC in production processes. The company recently ousted CEO Pat Gelsinger due to the prolonged delays in its turnaround efforts.
In Europe, Intel has been forced to put on hold its plans for a new factory in Magdeburg, Germany, citing financial constraints despite billions of euros in promised government support.
Biden’s Subsidy Program and Trump’s Skepticism
Trump’s predecessor, Joe Biden, launched a nearly $40 billion subsidy program designed to incentivize chip manufacturing in the US. Europe has followed suit with similar plans. However, Trump criticized Biden’s initiative as wasteful and suggested he would prefer to impose tariffs instead.
Conclusion
Trump’s demands for chip industry reshoring have been met with mixed reactions. While Taiwan and Europe are willing to cooperate, they have also expressed concerns over the potential economic and geopolitical consequences of disrupting established supply chains. The future of semiconductor manufacturing remains uncertain as the US, Taiwan, and other nations navigate a complex and evolving global landscape.
