Taiwan's think-tank urges US to prioritise semiconductor cooperation over tariffs amid China's chip rise

Taipei [Taiwan], July 22 (ANI): The United States should prioritise strengthening semiconductor cooperation with Taiwan instead of threatening tariffs on Taiwanese chips, said a government-affiliated think tank as per a report in Focus Taiwan.

The Trump administration has proposed a sweeping 32 per cent tariff on all Taiwan-made imports, including a specific duty on semiconductors--a move Taiwan is keen to prevent.

The Research Institute for Democracy, Society, and Emerging Technology (DSET), under Taiwan's National Science and Technology Council (NSTC), warned that U.S. actions should focus on curbing China's advances in chipmaking rather than undermining Taiwan's role.

"Without any measures to take on the challenges from China, the global industrial sector will grow more dependent on Chinese suppliers, which could post tremendous challenges to the global democratic alliance," DSET CEO Jeremy Chang said Monday.

Chang cited recommendations from the think tank's Let a Hundred Flowers Blossom report, which emphasises deeper Taiwan-U.S. cooperation.

The report calls for coordinated capacity planning and joint research between non-Chinese companies, along with targeted restrictions on Chinese imports and incentives for specialised chip-making processes.

DSET non-resident fellow Ho Ming-yen added that how democracies impose precise semiconductor export controls against China, in particular on raw materials used in mature chip production, will determine their ability to contain Beijing's expansion in the field.

Ho Ming-yen proposed that democratic economies like the US, Europe, Taiwan, and South Korea should form a sectoral agreement covering tariffs, outbound investment restrictions, free trade mechanisms, and collaborative capacity development.

DSET also warned that China is rapidly expanding its semiconductor footprint through heavy state support, subsidies, and strategic planning.

"Analysts project that PRC-based firms may account for nearly half of the world's new mature-node manufacturing capacity within the next decade," it said in a research report titled "Great Siege: The PRC's Comprehensive Strategy to Dominate Foundational Chips."

This growth poses a significant threat to the US, Taiwan and their allies, which depend on reliable and market-driven supply chains, the report argues. (ANI)