Taiwan will support its semiconductor manufacturers to overcome the costs caused by higher U.S. tariffs, Bloomberg reported, citing sources.
Taiwan's economic department will provide support for companies such as Foxconn to move production to Mexico. The island's government will also help companies overcome supply disruptions caused by U.S. President Donald Trump's 25% tariffs on imports from Canada, China and Mexico.
Trump has previously said the United States would impose tariffs on imports of semiconductors and pharmaceuticals. He added that Taiwan accounts for about 98% of the semiconductor business and said he wants to see manufacturers return to the United States. Many in Taiwan worry that its economy will be hit hard by high tariffs on chips made on the island.