Trump’s comments on Taiwan defense payment lead to TSMC share drop

Republican presidential candidate Donald Trump believes Taiwan should pay the U.S. for its defense, citing the lack of formal agreements between the two countries. While the U.S. is obligated to provide defense support to Taiwan, Trump argues that Taiwan should contribute financially for the services received.

In response, Taiwan’s Premier Cho Jung-tai emphasized the country’s commitment to self-defense and bolstering its own military capabilities. The U.S. has faced tensions with China over Taiwan, with President Joe Biden’s recent comments suggesting a shift in U.S. policy towards defending Taiwan.

These developments have impacted Taiwanese chip manufacturer TSMC, a key player in the global semiconductor industry. Despite concerns over potential conflict, TSMC continues to expand its operations, with significant investments in the U.S. and ongoing efforts to modernize its manufacturing facilities.

As geopolitical tensions rise, Taiwan remains a focal point for international relations and security concerns, with implications for global economic stability.