Synopsis
On March 8, President Trump criticized the U.S. semiconductor industry’s decline, mentioning Taiwan and South Korea. He condemned the CHIPS Act, deeming it wasteful, while emphasizing the need for stronger protection of American chip manufacturing.Key Takeaways
- Trump blames U.S. leadership for chip industry loss.
- CHIPS Act criticized as wasteful spending.
- Taiwan now dominates global semiconductor production.
- Trump advocates for better protection of U.S. industries.
- Investments from Taiwan's TSMC in the U.S. are significant.
Washington, March 8 (NationPress) US President Donald Trump has highlighted Taiwan and South Korea while asserting that the United States has lost its position in the semiconductor industry to international competitors.
During a press briefing at the White House, Trump reiterated his disapproval of the CHIPS and Science Act, labeling it a "significant waste of resources." This legislation, enacted by his predecessor Joe Biden in 2022, aims to enhance domestic chip production via incentives.
"We have gradually seen a decline in our chip industry, and it is now nearly entirely based in Taiwan. They appropriated it from us, and it was once led by an American innovator—Andrew Grove, the former CEO of Intel," he remarked, as reported by the Yonhap news agency.
He also stated, "We once owned the chip sector, and now it’s predominantly in Taiwan, with only a small presence in South Korea."
The president criticized past leaders for their failure to safeguard this vital industry.
"I don’t hold Taiwan accountable; I commend them. The blame lies with those who have occupied this office," he stated, adding, "We could have easily defended that industry."
His comments come despite Taiwan Semiconductor Manufacturing Co. committing to invest US$100 billion in advanced chip manufacturing facilities within the United States. This investment is in addition to the existing $65 billion they are investing in Arizona.
Trump reiterated his critique of the CHIPS Act during a congressional speech on Tuesday, calling for its repeal.
"This involves hundreds of billions of dollars, and it’s simply a waste of funds," he stated.
He argued that qualifying for subsidies under the act is challenging.
"They consider race, gender, and various factors. It’s unprecedented," he noted.
He further asserted that, although he did not provide foreign firms with any financial support, they were attracted to the U.S. due to tariffs.
"They sought to avoid paying tariffs. They also came because they appreciate the election results, recognizing my strong stance on business and job creation," he added.
Trump's comments regarding the CHIPS Act have garnered significant attention in South Korea, as the former Biden administration had agreed to offer grants to two South Korean tech giants, Samsung Electronics Co. and SK hynix, to facilitate their chip manufacturing investments in the U.S.
