Trump Is Wrong About Taiwan’s Chip Industry

Donald Trump’s comments that Taiwan hollowed out the American semiconductor industry are incorrect. That misunderstanding could impact the future of one of the world’s most important relationships, and end up aiding China at a time it is working hard to push its own tech sector to catch up.

“Taiwan took our chip business from us,” the returnee US presidential contender told Bloomberg Businessweek in an interview published this week. The remarks came after the Republican nominee was asked whether he’d defend Taiwan against China. It’s not the first time he’s said this about the island’s chip sector, but comes amid heightened military, trade and technology rivalry between the two superpowers. In truth, Taiwan accounts for less than a quarter of the global semiconductor market, trailing the US, but has more than a 90% share in the fabrication of the most-advanced chips.1