Taiwanese manufacturers are “not afraid” of US tariffs, but are concerned about being affected more heavily than regional economic competitors Japan and South Korea, Minister of Economic Affairs J.W. Kuo (郭智輝) said.
“Taiwan has many advantages that other countries do not have, the most notable of which is its semiconductor ecosystem,” Kuo said.
The US “must rely on Taiwan” to boost its microchip manufacturing capacities, Kuo said in an interview ahead of his one-year anniversary in office tomorrow.
Photo: CNA
Taiwan has submitted a position paper under Section 232 of the US Trade Expansion Act to explain the “complementary relationship” between Taiwan and the US in terms of trade and technology, he said.
US President Donald Trump on April 2 announced that Washington would impose “reciprocal” tariffs on global trading partners. Under that policy, which was later paused for 90 days, import duties of 32 percent, 25 percent and 24 percent were to be imposed on goods from Taiwan, South Korea and Japan respectively, putting Taiwan at a disadvantage.
One of the purposes of Trump’s policy is to encourage companies to manufacture their products in the US, Kuo said.
Tech heavyweights Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Intel Corp and Samsung Electronics Co already have operations there, but Samsung lacks advanced semiconductor production capacity, he said.
Samsung has a semiconductor fab in Austin, Texas, which produces more mature nodes — up to the 14-nanometer process — and it is building a more advanced fab in Taylor, Texas, set to begin production next year, Kuo said.
However, “once tariffs are imposed, Samsung will be most disadvantaged,” he added.
As a firm’s competitiveness depends on its cash and capabilities, TSMC would maintain its dominant position “over the next 10 years,” Kuo said, adding that since TSMC is a foundry, any tariff increase would primarily affect US customers, not the company itself.
Apple Inc’s iPhones could become more expensive when bought in the US compared with those sold abroad, which is “definitely not something Americans would like to see,” he said.
Taiwan would wait for the results of Japan’s and South Korea’s negotiations before proceeding, while continuing talks with the US, where concerns about “origin-washing” have been a key focus, Kuo said.
The two countries have different standards for labeling goods as “Made in Taiwan” or “Made in China,” he said, but added that the Ministry of Economic Affairs is strictly enforcing rules — with penalties of up to NT$3 million (US$99,430) and potential revocation of licenses for repeat contraventions.
To prevent illegal transshipments, the ministry has adopted a four-part strategy of monitoring import volumes, imposing stricter penalties, strengthening anti-dumping investigations and increasing guidance for industries, Kuo said.
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