Taiwan to boost U.S. investments amid Trump's tariff threats: Lai

Taipei, Feb. 14 (CNA) President Lai Ching-te (賴清德) said Friday that the government will further encourage Taiwan's businesses to invest in the United States, in the wake of U.S. President Donald Trump's renewed tariff threats on Taiwanese semiconductors.

Speaking at a news conference in Taipei, Lai vowed to expand Taiwanese investment in the U.S. and increase procurement to "promote balanced trade" between the two sides.

In addition, the administration will launch an initiative on semiconductor supply chain partnerships for global democracies, Lai said.

However, he did not elaborate on how the government would collaborate with private enterprises in Taiwan to fulfill these commitments, saying only the goal was to support the development of various Taiwanese industries in a way that aligns with U.S. policy.

Commenting on what he described as Trump's "concerns over Taiwan's semiconductor industry," Lai said Taipei continued to communicate with Washington to enhance mutual understanding.

"Taiwan is an indispensable partner in the U.S.' efforts to rebuild the manufacturing sector and consolidate its leadership in high-tech industries," Lai said, adding that cooperation between the two sides would be mutually beneficial.

The remarks came after Lai convened a meeting with top national security officials at the Presidential Office in response to Trump's renewed pledge to impose tariffs on Taiwan's semiconductor industry to encourage the reshoring of chip manufacturing in the U.S.

"Taiwan took our chip business away," Trump said after signing a presidential memorandum paving the way for tariffs on foreign chip exports, pointing to the fact that over 90 percent of advanced chips are currently produced in Taiwan.

"We want that business back. We want it back in the United States. And if they don't bring it back, we're not going to be very happy," he added.

Trump has previously threatened to impose tariffs of up to 100 percent on Taiwanese chips, prompting analysts to warn that such measures could harm U.S. tech companies reliant on Taiwan's chip supply and ultimately impact American consumers.

But Trump defended his tariff plans as he spoke to reporters in Washington on Thursday, saying they would drive up prices in the short term but ultimately bring job opportunities back to the U.S.

If implemented, the proposed tariffs would reverse the approach of the previous U.S. administration, which sought to achieve similar objectives by providing subsidies to domestic and foreign chipmakers to build production facilities in the U.S.

With financial support from the former Biden administration, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is investing an estimated US$65 billion to build three semiconductor fabs in Arizona.

According to Lai, Taiwan has been Washington's "most reliable trading partner," noting that the country's direct and indirect investment in the U.S. has increased significantly over recent years to surpass US$100 billion by the end of 2024, providing nearly 400,000 job opportunities.

In 2023 and 2024, Taiwan's investment in the U.S. accounted for over 40 percent of its total outbound investment, making the U.S. the primary destination for Taiwanese investors, Lai added.