Trump: Taiwan Should Fund U.S. Defense
- Donald Trump asserts that Taiwan should contribute financially to U.S. defense efforts, stating it 'doesn't give us anything.'
- This assertion follows rising tensions in the region.
- The recommendation has resulted in a drop in shares of TSMC, a major Taiwanese semiconductor company.
In a recent interview with Bloomberg Businessweek, former President Donald Trump suggested that Taiwan should financially contribute to U.S. defense efforts, asserting that the island "doesn't give us anything." This statement comes as Trump, who is campaigning for a return to the White House, addressed concerns regarding Taiwan's strategic importance in the face of potential aggression from China. Trump's remarks were notably linked to Taiwan's semiconductor industry, which he claimed has effectively taken "about 100%" of America's chip business. The U.S. has seen a significant decline in its semiconductor manufacturing capabilities, with Taiwan Semiconductor Manufacturing Co. (TSMC) emerging as a dominant player in the global market. Currently, the U.S. is projected to account for only 6% of semiconductor manufacturing, raising alarms about the implications of a concentrated supply chain in Taiwan. The geopolitical landscape surrounding Taiwan has become increasingly precarious, with fears mounting over the potential consequences of a Chinese military invasion. Experts warn that such an event could incapacitate TSMC's operations, further jeopardizing global supply chains reliant on Taiwanese chips. Trump's comments reflect a growing sentiment among some U.S. leaders regarding the need for Taiwan to assume greater financial responsibility for its defense, particularly as tensions with China escalate. As the 2024 presidential race heats up, Trump's stance on Taiwan and its semiconductor industry may resonate with voters concerned about national security and economic independence.