Taiwan is planning to conduct simulations to determine the effects of potential U.S. tariffs on its semiconductor sector and will seek discussions with Washington regarding the matter.
The Trump administration is examining the importation of semiconductors and pharmaceuticals with the aim of imposing tariffs on both, citing that significant dependence on foreign manufacturing of these goods poses a national security risk.
The U.S. has a strong reliance on chips imported from Taiwan, a dependency that former President Joe Biden aimed to reduce during his administration by allocating billions in Chips Act funding to attract chip manufacturers to boost domestic production.
During a press briefing outside parliament, Taiwan's Economy Minister Kuo Jyh-huei stated that he would initiate talks with the United States to ensure "fair competition" for Taiwanese companies.
"In terms of potential tariff levels, we will certainly conduct simulations," Kuo ssyd.
"Regarding the tariffs issue, we will make every effort to communicate with the U.S. authorities," adds the minister.
The minister says that the specific tariff levels will be the result of negotiations but did not provide further details.
Taiwan is home to TSMC, the largest contract chip manufacturer globally and a key supplier for major U.S. technology firms such as Apple and Nvidia.
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Nvidia announced plans to invest around $500 billion in AI servers in the United States over the next four years, with assistance from collaborators such as TSMC. This follows Apple's commitment in February to invest $500 billion in the U.S. over a similar time period.