Taiwan's Economy Minister Kuo Jyh-huei announced plans to simulate the impact of potential U.S. tariffs on the semiconductor industry and engage in discussions with Washington.

The specific extent of potential tariffs will be determined through negotiations between the U.S. and Taiwan, according to Kuo.

Kuo emphasized the importance of ensuring 'fair competition' for Taiwan's semiconductor sector and highlighted the complementary nature of the Taiwanese and U.S. chip industries.

Taiwan is a crucial supplier of semiconductors to the U.S., with TSMC being the world's largest contract chipmaker, supplying major tech companies like Apple and Nvidia.

Recently, TSMC announced a $100 billion investment in the U.S., further solidifying its commitment to the American market.

The U.S. government is investigating tariffs on semiconductor imports as a national security measure, citing reliance on foreign production.

The Biden administration has aimed to reduce U.S. dependence on Taiwanese chips by investing billions through the Chips Act to encourage domestic production.

Recent investments by major tech companies like Nvidia and Apple reflect a broader trend, with Nvidia planning to invest up to $500 billion in AI servers in the U.S. and Apple committing to $500 billion over the coming years.

The focus on tariffs under the Trump administration also extends to pharmaceuticals, aiming to reduce dependence on foreign sources.