Trump Accuses Taiwan of Stealing U.S. Chip Industry; Experts Say Taiwan’s Growth is Organic

Former President Donald Trump recently claimed that Taiwan had effectively stolen America’s semiconductor industry, asserting that the island democracy had taken “almost 100%” of the market from the U.S. Trump suggested that this loss was a grave error and that Taiwan should pay for American defense support.

However, industry experts dispute this assertion. Taiwan’s semiconductor success is attributed to its strategic vision and innovative business model, not theft. Morris Chang, the founder of Taiwan Semiconductor Manufacturing Company (TSMC), established the company in 1987 after a distinguished career in the U.S. semiconductor industry. Chang’s vision was revolutionary—creating a “pure-play foundry” model focused solely on manufacturing chips designed by other companies.

This approach transformed the global chip sector. Today, Taiwan produces over 90% of the world’s advanced semiconductors, according to the Semiconductor Industry Association. TSMC’s success is built on its ability to scale production, invest heavily in R&D, and maintain efficiency. The company’s recent opening of a global R&D center in Hsinchu further underscores its commitment to advancing chip technologies.

Experts highlight that Taiwan’s achievements are rooted in its effective contract manufacturing model, skilled engineers, and a supportive tech ecosystem. While Intel and Samsung are attempting to replicate TSMC’s success, Taiwan’s advantages remain challenging to duplicate.

In response to Trump’s remarks, Taiwanese Premier Cho Jung-tai emphasized that Taiwan remains committed to maintaining its R&D capabilities domestically. This stance underscores the strategic importance of Taiwan’s semiconductor industry amid growing geopolitical tensions, including the risk of Chinese aggression.

The ongoing U.S.-China rivalry and chip shortages during the pandemic have prompted the U.S. to seek greater domestic chip production through initiatives like the CHIPS and Science Act. As TSMC expands its operations with new factories in Arizona, it faces challenges integrating its operations into different cultural and regulatory environments.

Experts advise that fostering a cooperative relationship between Taiwan and the U.S. could benefit both sides, ensuring stability and progress in the global semiconductor industry.