Trump's Taiwan comment could come back to hurt the U.S. chip industry

A comment made by President-Elect Donald Trump months before the election could come back and have a negative impact the U.S. chip industry. In the July 16th edition of, Trump was quoted as saying,"Taiwan took our chip business from us. I mean, how stupid are we? They took all of our chip business. They’re immensely wealthy.a halt on any plans TSMC had to build 2nm chips out of the country

TSMC is expected to start manufacturing chips next month at its fab in Arizona using its 4nm/5nm nodes. By the end of the 2020s, the foundry was hoping to build 2nm chips in the U.S. although by then the industry will be well past the 2nm node for smartphone application processors. Even so, if Taiwan-U.S. relations are strained in any way it is not going to help make the U.S. self-sufficient in the semiconductors industry, a goal that surely President-Elect Trump would like to see.

While he still will be president-elect in December, Trump will supposedly be joining current U.S. President Joe Biden at the opening of the TSMC fab in Arizona. The factory is expected to hold the event during the first week of December. Biden's CHIPS and Science Act enacted in 2022 helped provide subsidies and support toward the building of the fabs. Despite wanting a strong U.S.

Many U.S. companies, including Apple and Nvidia, depend heavily on TSMC. As a result, it is hard to see any deterioration in the relationship between the U.S. and Taiwan although anything could happen over the next few years.

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