(Bloomberg) -- Taiwan’s economy minister pushed back at criticism of the island by Republican presidential nominee Donald Trump, and denied the island took the US chip industry.
“Of course Taiwan is not stealing the chip industry from the US,” Minister of Economic Affairs Kuo Jyh-huei told reporters in Taipei on Monday. “The chips we made are commissioned by US companies, which still have the highest gross margin. Trump might have some misunderstanding on such matters, and we will clarify that.”
Trump rattled Taiwan officials and the island’s markets with comments published July 16 in Bloomberg Businessweek that criticized the island over its chip sector and pushed Taiwan to pay the US for protection. That has raised fears that if Trump succeeds President Joe Biden, who has repeatedly said the US will defend Taiwan from a Chinese attack, he will be less committed, viewing Taiwan in transactional terms.
“Taiwan took our chip business from us,” Trump said at the time. “I mean, how stupid are we? They took all of our chip business. They’re immensely wealthy.”
Since Trump’s comments, the island’s officials have tried to talk up Taiwan’s efforts to uphold its part of the relationship. In response to Trump’s call for Taiwan to “pay” the US for protection, Premier Cho Jung-tai said the island has increased defense spending and extended the conscription period.
“It’s our shared responsibility and goal to maintain the peace and stability in the Taiwan Strait and the Indo-Pacific region,” Cho said on July 17.
The economy minister, who was doorstepped by reporters, also said Taiwan’s government plans to set up a business park in Kyushu, Japan, to help Taiwanese companies operating there.
“The park will follow the one-stop service model similar to the science parks we have in Taiwan,” Kuo said. “As each prefecture is providing different conditions, we will establish a new company providing services and helping Taiwanese companies swiftly settle in Japan.”
--With assistance from Cindy Wang.
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