Former President Donald Trump on Tuesday suggested that Taiwan should compensate the U.S. for its protection against China. This statement has raised questions about the future of U.S. support for Taiwan, especially if Trump is re-elected in the upcoming November presidential elections.
Trump’s Taiwan Comments: Trump’s comments led to a steep decline of 8% in shares of Taiwan-based AI chip giant TSMC, also known as Taipei’s “crown jewel.”
The comments not only sparked worries for Taiwan, but the impact of it was also seen in the stock of TSMC buyers, such as Apple Inc. (NASDAQ:AAPL), Nvidia Corp. (NASDAQ:NVDA), Qualcomm Inc. (NASDAQ:QCOM), and Advanced Micro Devices, Inc. (NASDAQ:AMD), that rely on the company for essential components.
This comes at a time when the chip industry is undergoing significant changes, with AI chips advancing rapidly and concerns growing over the fragility of the semiconductor supply chain. TSMC’s location in Taiwan, a territory claimed by China, puts the tech industry and the future of AI in a precarious geopolitical position.