TAIPEI (Reuters) - Taiwan's government will soon look at whether it needs to help its domestic industry over threats by U.S. President Donald Trump to put tariffs on semiconductors, Premier Cho Jung-tai said on Wednesday.
Home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. (TSMC), the island is a key link in the global technology supply chain for companies such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA).
Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel to get the producers to make them in the United States.
Responding to a question on Trump's remarks, Cho said the economy ministry and other departments have been paying close attention to the "developments of the past few days".
"In a day or two we will urgently look at whether we need to make more cooperative plans and future assistance programmes for the industrial sector," he added. "I would like to reassure our compatriots that Taiwan's position in the world's industrial chain is not to be ignored, and that we will continue to maintain such an advantage."
Taiwan has to continue to strive for more cooperation externally and to maintain its leadership in the industrial and technological sectors, Cho added.
In 2020, under the first Trump administration, TSMC announced that it would build a $12 billion factory in Arizona in a win for efforts by the U.S. government to wrestle global tech supply chains back from China. It later boosted those plans with the total investment now standing at $65 billion.
TSMC has declined to comment on Trump's latest tariff remarks.
This month, Taiwan Economy Minister Kuo Jyh-huei said he only expected a small impact from any tariffs imposed by Trump on semiconductor exports given their technological superiority.
In another potential challenge for Taiwan, Trump last week directed federal agencies to investigate persistent U.S. trade deficits and unfair trade practices and alleged currency manipulation by other countries.
Taiwan's trade surplus with the United States surged 83% last year compared with 2023, with exports to the U.S. hitting a record $111.4 billion driven by demand for high-tech products such as semiconductors.