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In a recent statement at the White House, former President Donald Trump voiced his concerns about the current state of the U.S. semiconductor industry, emphasizing the dominance of Taiwan and South Korea in chip manufacturing. He claimed that the U.S. has lost its competitive edge in this critical sector.
During his remarks, Trump specifically targeted the CHIPS and Science Act, which was passed in 2022 under President Joe Biden’s administration. This legislation aims to enhance domestic semiconductor production through various federal incentives and subsidies. Trump, however, described it as a “tremendous waste of money.”
Trump’s Perspective on Semiconductor Production
Trump underscored the seismic shift in chip manufacturing, claiming, “We gradually lost the chip business, and now it’s almost exclusively in Taiwan. They stole it from us.” He highlighted that the industry was once championed by Andrew Grove, the late CEO of Intel Corp., illustrating a stark contrast to its present status.
He further added, “We had the chip business, and now it’s all in Taiwan, almost exclusive… a little in South Korea, but mostly in Taiwan.” Trump attributed the loss of this industry to past administrations, stating, “I don’t blame Taiwan. I give them credit. I blame the people that were sitting in this seat. We could have protected that so easily.”
Commitment to U.S. Semiconductor Investment
Despite Trump’s critical stance, it’s noteworthy that Taiwan Semiconductor Manufacturing Co. (TSMC) has pledged a substantial investment of $100 billion to establish advanced chip production facilities in the United States. This initiative follows their existing $65 billion commitment in Arizona, signaling continued foreign interest in the U.S. semiconductor landscape.
Criticism of the CHIPS Act
Continuing his critique, Trump called for the repeal of the CHIPS Act, claiming it amounts to “hundreds of billions of dollars” wasted. He criticized the qualifying criteria for subsidies, stating that they unfairly emphasize race, gender, and other factors that complicate the application process for companies.
Moreover, Trump argued that foreign semiconductor firms decided to invest in the U.S. not primarily due to the CHIPS Act but because of the tariffs implemented during his administration. “They didn’t want to pay the tariffs. And they also came because they like the results of the election,” he claimed, referencing his pro-business agenda.
Implications for South Korean Chipmakers
Trump’s comments have gained traction in South Korea, particularly because the CHIPS Act has opened pathways for tech giants like Samsung Electronics and SK hynix to secure funding for their semiconductor manufacturing endeavors in the U.S.
As discussions about semiconductor policy continue, Trump’s assertions could signal potential shifts in U.S. economic and trade strategies that may significantly affect global chip production and investment approaches.
Read More: Key Takeaways from Trump’s 2025 Speech to Congress
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