Amid concerns over potential trade penalties from the U.S., Yang Chin-long, the governor of Taiwan’s central bank, has voiced optimism for Taiwan Semiconductor Manufacturing Co.’s TSM upcoming $65 billion investment in U.S. factories.
What Happened: During a legislative session, Yang highlighted the strategic significance of semiconductors and tech products manufactured in Taiwan, noting their essential role in the U.S. supply chain, Reuters reported on Thursday.
He stated, “Chips and information and telecommunications products are what the U.S. needs most. I don’t think the United States would penalise Taiwan.”
Yang mentioned that TSMC’s plan to invest $65 billion in new factories in Arizona would help address the trade imbalance. However, he warned that President-elect Donald Trump‘s planned new tariffs could impact Taiwan’s export-driven economy. Taiwan’s trade surplus with the U.S. is expected to reach $50 billion this year.
See Also: Apple’s Next Big Bet? Think Smaller, Says Analyst: ‘There Will Never Be Another… iPhone’
Why It Matters: In late October, Trump criticized Taiwan’s semiconductor industry during an episode in “The Joe Rogan Podcast.”
"You know, Taiwan, they stole our chip business … and they want protection," he said, pledging to impose tariffs on Taiwanese chips if elected, which could significantly impact the company, a key supplier to tech giants like Apple Inc. AAPL and Nvidia Corp NVDA.
Despite Trump’s election win, TSMC announced that its U.S. expansion plans remain unchanged, continuing with a $65 billion investment in advanced semiconductor facilities in Arizona.
Additionally, TSMC faces new U.S. restrictions, as the U.S. Department of Commerce ordered a halt on AI chip sales to China, reflecting ongoing efforts to limit China’s access to advanced technology.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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