Trump demands the return of chip production to the USA - Taiwan reacts!

Trump demands the return of chip production to the USA - Taiwan reacts!

Taipei, Taiwan - President Donald Trump has once again put the chip industry under pressure and demanded that the production come back to the United States. He made it clear that Taiwan made their chip market to the Americans, which he perceives as unsustainable. "If you don't bring it back, we won't be very happy," said Trump in the White House. The concern is that a possible blockade by China could endanger the supply of important smartphone chips is great in the USA, since the most modern chips are now mostly produced in Taiwan, although its development is carried out in the United States. As the crown reports , the US president refers to the decades of subsidies that the Taiwanese manufacturers have attracted.

Taiwan responds to Trump's demands

In the face of Trump's demands, Taiwan's President Lai Ching-Te signaled that the Taiwanese government is willing to work closer together with the USA. He explained that Taiwan wants to build a diversified and resistant supply chain for semiconductors in cooperation with its democratic partners. This could be essential for the US economy, since companies like TSMC, the world's largest chip manufacturer, produce a large part of the chips for tech giants such as Apple and Intel. The Associated press reports that Lai emphasized a clear dialogue with which U.S. industry to create advantages for both sides.

Trump had recently ordered tariffs on trade agreements with partners who tax US imports, and this could lead to another trade conflict. Lai advocated that Taiwan has directed more than 40 % of his foreign investments to the United States in the past two years, which underlines the close economic connection between the two countries. In view of the increased armaments investments, Taiwan also wants to increase his defense budget to over 3 % of the gross domestic product in order to react to the geopolitical tensions in the region.

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