Trump lays bare TSMC's inherent vulnerabilities
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Robyn Mak
HONG KONG, July 17 (Reuters Breakingviews) -The presidential candidate complained Taiwan took America's chip business and about handing out subsidies. He wants it to pay for US defence. For now, the high exposure of the island's $840 bln semiconductor giant to both Washington and Beijing is a dampener on its AI fortunes.
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Taiwan Semiconductor Manufacturing shares fell more than 2% to T$1,030 ($31.60) during morning trading on July 17 following remarks from U.S. presidential candidate Donald Trump that Taiwan should pay the United States for defence.
"I know the people very well, respect them greatly. They did take about 100% of our chip business. I think, Taiwan should pay us for defence," Trump said in interview with Bloomberg Businessweek on June 25 but published on July 16.
"You know, we're no different than an insurance company. Taiwan doesn't give us anything," Trump said.
Editing by Una Galani and Aditya Srivastav
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