Taiwanese Government Plans Chip Industry Aid Amid Trump Tariff Threats

In response to President Trump's threat to impose a 100 percent tariff on semiconductors, Taiwan's Premier Cho Jung-tai emphasized the importance of maintaining the nation's competitive edge in the semiconductor industry and indicated the government's intent to explore partnerships with the private sector. Trump’s proposed tariffs would significantly impact Taiwan, which produces nearly 98 percent of the global chip supply, raising concerns about potential economic damage. Meanwhile, a freeze on federal funding ordered by the Trump administration has put CHIPs Act grants to semiconductor companies in jeopardy, though Bank of America suggests these grants are likely to survive despite the current uncertainty. The situation has prompted alarm among supporters of the CHIPs Act, with Senator Chuck Schumer criticizing Trump for unlawfully withholding funds and warning of negative repercussions for economic growth. Government officials are preparing for various scenarios as they await further guidance on the funding freeze's implications. The controversy over the funding freeze continues to unfold, raising questions about the future of semiconductor investments in the U.S.