• 2025-08-07 10:50 AM

TAIPEI: Taiwanese officials confirmed that Taiwan Semiconductor Manufacturing Company (TSMC) will not be subject to former US President Donald Trump’s proposed 100% tariff on semiconductor chips.

National Development Council chief Liu Chin-ching stated TSMC’s exemption is due to its existing manufacturing facilities in the US.

“Because Taiwan’s main exporter is TSMC, which has factories in the United States, TSMC is exempt,“ Liu said during a parliamentary briefing.

Other Taiwanese chipmakers will still face the full tariff, though Liu noted competitors would be equally affected.

“Taiwan currently holds a leading position in the world and I believe that if the leader and competitors are on the same starting line, the leader will continue to lead,“ he added.

The government plans to monitor the situation and provide short-term and medium-term support measures.

Trump announced the tariff plan at the White House, stating it would apply a 100% levy on imported chips and semiconductors.

He did not specify when the policy would take effect but clarified exemptions for companies with US-based production.

TSMC, the world’s largest contract chipmaker, supplies major tech firms like Nvidia and Apple.

Taiwan produces over half of the world’s semiconductors and nearly all high-end chips.

Trump has previously accused Taiwan of undermining the US chip industry, despite TSMC’s planned $100 billion US investment.

Taiwan has also committed to increased US energy purchases and higher defence spending to mitigate trade tensions.

A temporary 20% tariff on other Taiwanese goods remains in place as negotiations continue. - AFP