Trump softens tone on Taiwan's chip industry after TSMC investment

Washington, March 7 (CNA) U.S. President Donald Trump softened his stance on Taiwan's semiconductor industry on Friday, just days after Taiwan Semiconductor Manufacturing Co. (TSMC) announced a US$100 billion investment in the United States.

Speaking at the White House, Trump reiterated that Taiwan "stole" the U.S. chip industry but shifted the blame to previous administrations for allowing the computer chip production to move overseas.

"They stole it from us. They took it from us, and I don't blame them. I give them credit," Trump said. "I blame the people that were sitting in this seat because they allowed it to happen."

He also recalled that Intel was once a dominant player under former CEO Andy Grove, but said it gradually lost its leadership, allowing Taiwan to take over the sector.

Following Grove's passing, Trump said, Intel had leaders who "didn't know what the hell they were doing," which led to the U.S. losing its chip industry, now "almost exclusively in Taiwan."

Previously, Trump had threatened a 100 percent tariff on Taiwan's semiconductor imports to the United States, to encourage domestic chip production. His softened stance comes after TSMC committed on March 4 to building five advanced chip plants in Arizona.

No U.S. subsidies have been announced as part of this deal.

Trump hailed TSMC's expansion as a major victory for the U.S. because his government did not have to offer any subsidies, and criticized former President Joe Biden's CHIPS and Science Act, which allocated US$52 billion in subsidies to TSMC and other foreign chipmakers to boost local semiconductor manufacturing, calling it a waste of money.

He argued that TSMC's investment was driven by concerns over tariffs, rather than U.S. government incentives.