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Two weeks after saying he would tariff foreign-made processors, President Trump today accused Taiwan of stealing the US's chip business.
"Right now, everything is made in Taiwan practically. Almost all of it, a little bit in South Korea. But everything, almost all of it is made in Taiwan," he said, a reference to Taiwan-based TSMC, which produces leading-edge chips for the top tech companies, including Apple and Nvidia.
The president then threw some indirect shade at Intel, which also sources some of its chips from TSMC. “Taiwan took our chip business away,” Trump told reporters. “We had Intel, we had these great companies that did so well. It was taken from us. And we want that business back. We want it back in the United States.
“If they don’t bring it back, we’re not going to be very happy,” he added, months after making similar comments while on the campaign trail.
To push the tech industry to migrate chip manufacturing to the US, Trump has threatened to impose tariffs as high as 100% on all foreign-made processors. So far, TSMC has yet to comment on Trump’s tariff plans. But on Wednesday, the company’s board approved an additional $17 billion in funding to bolster its chip production, a portion of which will be in the US.
“We don't break down [capital expenditures] by market but some will apply to Arizona, where the second of three planned fabs is currently under construction,” a TSMC spokesperson said.
The company’s first fab in Arizona is complete and has started chip production using TSMC's 4-nanometer process. The chip giant plans on spending $65 billion on three fabs in the state, but much of its chip manufacturing, including its most advanced processes, still happens in Taiwan.
Trump commented on chip manufacturing after signing an executive order calling on his administration to investigate “reciprocal tariffs” on foreign countries, which risks sparking a larger trade war. On concerns the tariffs will increase prices for consumers, Trump told reporters, “There could be some short-term disturbance, but long-term it’s gonna make our country a fortune,” citing his belief that companies will migrate manufacturing to the US.
“If you build here, you’ll have no tariffs whatsoever, and I think that’s what’s going to happen. I think our country is going to be flooded with jobs,” added.
Foxconn, a major supplier of Apple iPhones, has signaled it’s exploring some manufacturing investments in the US. But others, such as motherboard maker ASRock, plan on moving their production to Taiwan and Vietnam to avoid Trump's tariffs on China.
The previous administration tackled the chip disparity via legislation. The CHIPS and Science Act, signed by President Biden in 2022, allocated $280 billion in funding for high-tech research, development, and manufacturing in the US. Almost $8 billion of that is going to Intel.
Last month, Trump called the CHIPS and Science Act a "ridiculous program," and argued that companies don't need money, they need incentives to build in the US. "The incentive is gonna be they’re not gonna wanna pay a 25, 50 or even a 100 % tax," Trump said.