Taiwan's Economy Reacts to US Tariffs

Taiwan's Economy Minister Kuo Jyh-huei has stated that the impact of potential U.S. tariffs under President-elect Donald Trump on Taiwan's semiconductor exports will be minimal, citing the sector's technological leadership. Despite concerns that new tariffs could slow Taiwan's export-driven economy, Kuo emphasized that Taiwan Semiconductor Manufacturing Co. (TSMC) remains a crucial player in the global supply chain for tech companies like Apple and Nvidia. In response to the tariffs, Taiwan plans to assist companies in relocating supply chains to the U.S. and will establish an office in Japan to support investments and collaborations in AI and drones. Meanwhile, Malaysian analysts note that U.S. restrictions on AI chip exports are unlikely to significantly affect Malaysia’s tech sector, as local supply chains are not heavily integrated into the global AI landscape. However, these export restrictions might hinder data center expansions in Malaysia, particularly for U.S.-owned facilities. Overall, the semiconductor industry in both Taiwan and Malaysia is adapting to the evolving trade environment, with a focus on maintaining competitiveness and exploring new opportunities.