Taiwan to Assist Companies Relocating Production from China Amid U.S. Tariff Threats

Taiwan's Response to U.S. Tariff Threats on Chinese Imports

Taiwan's Economy Minister, Kuo Jyh-huei, announced on Thursday that Taiwan will help companies relocate production from China in response to the looming tariffs promised by incoming U.S. President Donald Trump. The tariffs, which could reach up to 60% on Chinese imports, are expected to have a significant impact on global trade and could slow growth in the world’s second-largest economy.

U.S. Tariffs Pose Major Risks for Taiwan's Companies in China

For over four decades, Taiwanese companies have invested billions in China, benefiting from lower production costs. However, Taiwan's government has been encouraging firms to diversify their investments elsewhere, particularly in light of Beijing’s growing pressure on Taiwan. Kuo stated that the impact of U.S. tariffs on Taiwanese firms operating in China would be "quite large," emphasizing the need for timely assistance to relocate production bases.

Contingency Plans for Taiwan's Semiconductor Industry

Lawmakers raised concerns about the potential loss of subsidies for Taiwan’s semiconductor giant, TSMC, which is investing $65 billion in new factories in Arizona. Kuo confirmed that a contingency plan is in place, with options for supporting more companies in the supply chain to move to the U.S. This aligns with TSMC’s ongoing expansion efforts in the U.S.

Taiwan's GlobalWafers, investing $4 billion in the U.S., expressed confidence that the CHIPS and Science Act would continue under the new U.S. administration, ensuring ongoing support for semiconductor investment.