**Trump's Comments on Taiwan Chips Spark Economic Concerns**

During a recent appearance on "The Joe Rogan Experience" podcast, former President Donald Trump leveled serious allegations against Taiwan, accusing the nation of usurping the American chip industry. Trump revealed his intention to impose tariffs on Taiwanese chips if he were to be re-elected. The repercussions of this announcement were felt immediately, with shares of Taiwan Semiconductor Manufacturing Company (TSMC) plummeting by 4.3% on Monday.

Trump’s remarks come at a crucial time, as over 90% of the world’s advanced chips are produced by TSMC, according to UBS analysts. Major tech companies including Nvidia, Amazon, Google, and Microsoft heavily depend on Taiwanese semiconductor manufacturing for their AI models and in-house chips. A tariff imposition could escalate costs across the tech supply chain, warned Citi analysts. They further noted that implementing such tariffs would necessitate complex audits across thousands of devices containing various chips.

The former president's criticism didn’t stop at Taiwan. Trump also voiced dissatisfaction with the U.S. CHIPS Act, arguing that it unfairly allows foreign companies to benefit from U.S. government funds. Under the Act, TSMC is expected to receive nearly $7 billion from the U.S. Commerce Department to develop its Arizona foundry, with production volumes slated to surge in 2025. However, these funds are contingent upon the company meeting specific milestones by the end of the year.

In the broader geopolitical arena, the potential for strained U.S.-China relations looms large. Analysts from Mizuho and Citi caution that a Trump re-election could be detrimental to TSMC, while a broader trade war could further disrupt the sector. Notably, under the Biden administration, stringent export controls on China have already severely curtailed Nvidia’s revenue from the country, reducing it from over 25% to less than 10%.

Industry experts underscore the challenges for U.S. semiconductor companies in competing with TSMC. While Intel, which is seen as the face of the CHIPS Act, has experienced setbacks, there is a growing sentiment that the U.S. must build its own leading-edge infrastructure regardless of who constructs it. Stacy Rasgon, a Bernstein analyst, dismissed Trump's claim that Taiwan had stolen the American chip industry as "ridiculous."

The implications of Trump's comments and potential policies are significant for the tech industry and global markets. Earlier this summer, similar remarks by Trump caused the VanEck Semiconductor ETF to lose $675 billion in market cap within a week, with TSMC shares dropping by over 10%. As eyes remain fixed on the forthcoming election, the future of semiconductor manufacturing continues to be a contentious and critical issue for both the U.S. and its global partners.