Fear and resignation after Trump's $ 100 billion fee

Fear and resignation after Trump's $ 100 billion fee

The surprising ceremony in the White House, led by President Donald Trump, announced the $ 100 billion in the Taiwan Semiconductor Manufacturing Company (TSMC)-a decision that was celebrated as the greatest step of this type by a non-American company. But the jubilation in Washington is in stark contrast to the mood in Taiwan, where the announcement caused the loss of the leading semiconductor industry to the USA due to political pressure.

reactions from Taiwan

The former President of Taiwan, Ma Ying-Jeou, did not long for himself and accused the governing Democratic Progress Party (DPP) to sell TSMC as a "protection fee" to Trump. "This is a large national security crisis," wrote Ma on March 4 on his Facebook page shortly after the ceremony in the White House. The decision will "have a significant negative impact on the trust of the population who have relationships about the street and Taiwan's future geopolitical position".

The role of TSMC

The TSMC produces over 90 % of the world's most progressive microchips that drive everything from smartphones and artificial intelligence to weapon systems. In Taiwan, the global dependence on these semiconductors is considered a "silicon shield", which could serve as a deterrent against a possible Chinese invasion.

growing concerns about international relationships

China's governing party and has announced that the self -administration island are violently under its control. In recent years, Beijing has tightened his military activities around Taiwan by regularly stationing fighter planes near the island and carrying out exercises in surrounding waters.

The situation means that the sentence "Ukrainian today, Taiwan Morgen" is increasingly resonance in Taiwan's population. Many observers see parallels between the two democracies that face existential threats from aggressive neighbors.

US aid and the Taiwan Relations Act

Taiwan rely on military and political support from the United States. As part of the Taiwan Relations Act, the USA is legally obliged to provide Taiwan the means to defend itself against a possible attack by China. But Trump's current course and his frequent attacks on Taiwan's economy have aroused concern about future US-Taiwanese relationships.

Taiwan's security and international politics

In conversation about Taiwan's security situation, Tammy Chao, a pensioner, emphasized her deep concerns. She compared Trump's attitude with his approach to Ukraine and expressed that Taiwan could possibly be treated as a negotiating mass. "TSMC was the best card," she said.

In contrast, others are less concerned. Fred Lin, a specialist from the financial sector, believes that TSMC acted well. "Who does not pay to the USA? It's a kind of proxy fee, we can understand that, but that is the reality of international politics," he said.

strategic investments of TSMC

President Lai Ching-Te made it clear that Taiwan had not felt any pressure from Washington as part of the TSMC deal. TSMC caused the investment through the "strong demand" of American customers who strive for local production from potential risks in the supply chains. The grants that TSMC receives are part of the Chips Act, which is promoted by the bid administration and has the goal of increasing native semiconductor production.

effects on the global chip market

The announcement of TSMC to build new facilities in the USA is the focus of a broader trend in which companies are willing to make considerable investments. However, while Trump wants to promote incentives for domestic investments by subsidies, he relies on the use of tariffs. Earlier threats from Trump to raise tariffs on semiconductors and other industries have already shown their effects.

whether TSMC and other companies are willing to continue to compromise to secure the relationship with the USA could be crucial for the future dynamics in both the semiconductor industry and in the geopolitical landscape. However, analysts warn that compromises in international politics can also bring risks.

This article illuminates the dynamic and often tense relationships between Taiwan, the USA and China in the context of the global semiconductor industry and illustrates how geopolitical decisions can influence national security and business.