Holiday Ayo - US President Donald Trump said that he told Taiwan Semiconductor Manufacturing Company (TSMC) to immediately realize its promise to build a factory in the US.

Otherwise, Trump threatened to impose a 100% tax on Taiwanese chip giant TSMC. 

Speaking at the Republican National Congressional Committee event, Trump criticized President Joe Biden.

His predecessor was criticized for providing USD 6.6 billion in incentives for the construction of TSMC's factory in Phoenix, Arizona.

In fact, according to Trump, TSMC did not need the incentives.

"I didn't give money to TSMC... what I did was say, if you don't build a factory here, you're going to pay a lot of taxes," Trump said.

TSMC declined to comment on Trump's statement, quoted from Reuters, Wednesday (9/4).

Last March, TSMC said it would invest USD 100 billion in the United States. The investment includes building five new chip production facilities in the next few years.

But TSMC's investment in America was not welcomed in its home country. Former Taiwanese President Ma Ying-jeou accused the ruling Democratic Progressive Party (DPP) of selling TSMC to Trump as a protection fee.

"This is a major national security crisis," said Ma, a member of the opposition Kuomintang (KMT) party shortly after the signing ceremony at the White House.

"This will have a significant negative impact on public trust, cross-strait relations, and Taiwan's future geopolitical position."

He feared that Taiwan's flagship company would "fall" into the hands of the United States.

He fears that Taiwan’s flagship company could “fall” into the hands of the United States. TSMC produces more than 90% of the world’s advanced microchips, the brains of everything from smartphones to AI to weapons. 

That’s why many in Taiwan believe the global reliance on its semiconductors serves as a silicon shield, deterring a potential Chinese invasion. But Taiwan is also dependent on US military and political support. 

Trump’s rhetoric has raised uncertainty over the future of US-Taiwan relations. He has repeatedly accused Taiwan of stealing the US semiconductor industry and said Taiwan should pay the US for protection. 

For many Taiwanese, the fear of ending up like Ukraine, invaded by Russia, has grown as Trump has warmed to Moscow and alienated traditional European allies.

Taiwanese see parallels with Ukraine, both facing existential threats from aggressive neighbors.