Taipei: If the United States imposes tariffs on semiconductors made in Taiwan, Taiwan should work actively to strengthen industrial cooperation with the U.S., according to an industry expert. Yang Guang-lei, former director of Taiwan Semiconductor Manufacturing Co.'s (TSMC) R and D Division and former senior technical advisor to Intel, emphasized Taiwan's need to leverage its strengths in semiconductor manufacturing alongside U.S. strengths in innovation and applications to address the potential tariff threat.
According to Focus Taiwan, U.S. President Donald Trump suggested on January 27 that tariffs of up to 100 percent could be imposed on Taiwan-made semiconductors. Although Trump did not provide further details, the implications of such a move could be significant for both Taiwanese and American companies. Trump's previous attempts to encourage overseas investment in the U.S. through tariffs contrast with President Joe Biden's strategy, which has combined financial incentives and geopolitical pressure to secure commitments from companies like TSMC to establish advanced wafer fabrication facilities in Arizona.
Yang highlighted that if the tariff policy is implemented, it would increase the prices of Taiwan-made semiconductors in the U.S., diminishing the competitiveness of Taiwanese vendors and creating opportunities for competitors such as Samsung and China to gain market share. This potential disruption in supply could also adversely affect American companies, given Taiwan's substantial share of the U.S. semiconductor market.
Yang suggested that Taiwan should reconsider its role in the global semiconductor market and actively pursue cooperation with the U.S. to jointly tackle global technology competition challenges. This could include transferring technology to the U.S. and sharing Taiwan's extensive experience in semiconductor manufacturing. Areas of potential collaboration could involve integrating AI into semiconductor production, manufacturing military goods, and exploring other niche markets.
By fostering such cooperation, Yang argued that the U.S. could expand its manufacturing capabilities, while Taiwan could sustain its global advantage through a mutually beneficial relationship. He cited a partnership example between Taiwan's United Microelectronics Corp. (UMC) and Intel in 2024, where the two companies collaborated on a 12-inch wafer platform, combining UMC's mature production experience with Intel's capacity.
Developing collaborative efforts in these areas could help Taiwan maintain its competitive edge in the global semiconductor market while strengthening its long-term partnership with the U.S., Yang concluded.