The Blubber

Two weeks after announcing plans to impose tariffs on foreign-made processors, President Donald Trump accused Taiwan on Friday of stealing the U.S. semiconductor industry.

"Right now, everything is made in Taiwan, practically. Almost all of it—just a little bit in South Korea. But almost all of it is made in Taiwan," Trump said, referring to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s leading chipmaker that produces cutting-edge semiconductors for major tech firms like Apple and Nvidia.

The president then appeared to criticize Intel, which relies on TSMC for some of its chip production. "Taiwan took our chip business away," Trump told reporters. "We had Intel, we had these great companies that did so well. It was taken from us. And we want that business back. We want it back in the United States."

"If they don’t bring it back, we’re not going to be very happy," he added, echoing similar statements he made during his campaign.

In an effort to incentivize tech companies to move semiconductor production back to the U.S., Trump has threatened tariffs of up to 100% on all foreign-made processors. TSMC has yet to respond directly to the tariff threat. However, on Wednesday, the company’s board approved an additional $17 billion in capital expenditures to expand chip production, part of which will fund projects in the U.S.

"We don’t break down capital expenditures by market, but some of it will apply to Arizona, where the second of three planned fabs is currently under construction," a TSMC spokesperson said.

TSMC’s first fab in Arizona is already operational, producing chips using its 4-nanometer process technology. The company plans to invest $65 billion in three semiconductor fabs in the state, although much of its most advanced manufacturing remains in Taiwan.

Trump’s comments on chip production came shortly after he signed an executive order directing his administration to explore “reciprocal tariffs” on foreign-made goods, a move that could escalate trade tensions. When asked about concerns that the tariffs might lead to higher consumer prices, Trump said, "There could be some short-term disruption, but long-term it’s going to make our country a fortune," predicting that manufacturers would relocate production to the U.S.

"If you build here, you’ll have no tariffs whatsoever, and I think that’s what’s going to happen. I think our country is going to be flooded with jobs," Trump added.