Washington: U.S. President Donald Trump addressed the state of the semiconductor industry on Friday, mentioning Taiwan and South Korea as he argued that the United States has lost its chip business to these foreign countries. During a press availability at the White House, Trump criticized the CHIPS and Science Act, describing it as a "tremendous waste of money." This act, signed by his predecessor Joe Biden in 2022, aims to boost domestic chip manufacturing through incentives.
According to Yonhap News Agency, Trump emphasized that the semiconductor industry, once dominated by American entrepreneur Andrew Grove, former CEO of Intel Corp, is now predominantly located in Taiwan. "We gradually lost the chip business, and now it's almost exclusively in Taiwan. They stole it from us. They took it from us," he stated, noting that South Korea also holds a small portion of the business.
Trump criticized former presidents for allowing the shift of this crucial industry overseas. "I don't blame (Taiwan). I give them credit. I blame the people that were sitting in this seat," he remarked, suggesting that previous administrations could have easily protected the domestic chip industry.
Despite these comments, Taiwan Semiconductor Manufacturing Co. has agreed to invest US$100 billion to construct advanced chip-producing facilities in the United States, supplementing its current $65 billion investment in Arizona.
Trump reiterated his disapproval of the CHIPS Act, calling for its removal during a congressional address on Tuesday. He described the act as a financial burden, claiming, "It's hundreds of billions of dollars, and it's just a waste of money." He argued that the qualification criteria for subsidies under the act are overly complex and discriminatory.
Continuing his critique, Trump expressed that foreign companies chose to invest in the U.S. due to tariffs and confidence in his pro-business policies. "Because they didn't want to pay the tariffs. And they also came because they like the results of the election, because they know that I'm very pro-business and pro-jobs," he explained.
Trump's comments on the CHIPS Act have garnered significant attention in South Korea, particularly because the previous Biden administration had agreed to provide grants to South Korean tech firms Samsung Electronics Co. and SK hynix under the act to support their U.S. chipmaking investments.