Taiwan Tries to Persuade US That It Seeks Cooperation in Chipmaking

It wants Washington to see it as an economic necessity rather than rival

- Yip Wai Yee

TAIPEI - Taiwan may be a world leader when it comes to contract chipmaking, but make no mistake, the island is not challenging the US for tech dominance.

Instead, Taipei is trying to persuade Washington that it seeks cooperation - not competition - even as US President Donald Trump has repeatedly accused Taiwan of stealing the chip business from his country.

Late on Feb 18, Mr Trump said he planned to impose tariffs of at least 25 per cent on all semiconductor imports, with the possibility of going "very substantially higher over the course of a year". He did not specify a date but said he wanted to allow time for chipmakers to set up American factories so that they can avoid tariffs.

He had previously threatened tariffs of up to 100 per cent on Taiwan-made chips.

"Taiwan took our chip business away... We want that business back, we want it back in the United States," the American leader told reporters on Feb 13 as he vowed to reshore manufacturing via tariff policies.

But analysts said the message behind Taipei's response, delivered via a speech by Taiwanese President Lai Ching-te a day later on Feb 14, is clear: Taiwan is not taking from the US but enabling the US to stay ahead.