Trump laments that he didn't implement tariffs earlier! Otherwise, Intel would have become the biggest company, and TSMC wouldn't exist.

Trump said in an interview that if tariffs had been implemented earlier, Intel would have become the largest company, and accused Taiwan of stealing the U.S. chip industry. However, TSMC's rise is actually the result of the foundry model and global division of labor, not theft. This statement highlights his mercantilist thinking.

Trump laments that if tariffs had been implemented earlier, Taiwan wouldn't exist

Recently, U.S. President Trump gave an exclusive interview to Fortune magazine, where he specifically discussed the current state of the semiconductor industries in the U.S. and Taiwan, and lamented that the U.S. government failed to protect domestic companies at critical moments, otherwise Intel would now be the world's largest company.

The Trump administration had, in the summer of 2025, negotiated to convert the originally planned federal chip manufacturing subsidies for Intel into equity, acquiring a 9.9% stake in the company. Trump stated that this investment, valued at about $10 billion, had grown to over $50 billion in just eight months.

Trump claimed that if he had been president when countries started shipping chips from China, he would have imposed tariffs on these imports to protect Intel. He straightforwardly said that if tariffs had been implemented early, Intel would have monopolized all semiconductor business, and Taiwan (TSMC) would not have the position it does in the industry today.

Image source: Flickr, photo by Gage Skidmore Trump delivering a speech at the 2025 Conservative Political Action Conference (CPAC)

Trump's Another Interview Accuses Taiwan of Stealing the U.S. Chip Industry

In addition to the Fortune interview, Trump recently also gave an interview to Fox News.

He made more aggressive remarks about Taiwan's semiconductor industry and warned Taiwan not to expect a blank check of U.S. military support in the event of war. When asked whether Taiwan should feel safer or less safe after the Trump-Xi meeting, Trump responded neutrally and emphasized that U.S. policy toward Taiwan has not changed.

In the interview, Trump also claimed that Taiwan's current scale is entirely due to successive U.S. presidents not imposing tariffs on chips exported to the U.S., and he even asserted that Taiwan stole the U.S. chip industry.

He believes that tough tariff policies could have prevented the chip manufacturing industry from moving overseas, and reiterated that the U.S. has already lost its own chip industry.

Trump says Taiwan stole the U.S. chip industry, but TSMC's rise is closely linked to the U.S.

However, claiming that Taiwan stole the U.S. semiconductor industry may not be accurate. The rise of Taiwan in the semiconductor field has a complex historical background and is deeply rooted in U.S. technological development.

From the 1970s to the 1990s, the Taiwanese government actively researched the electronics industry for economic development. TSMC was initially invested in by the Taiwanese government with $70 million, with additional private investments of $35 million, and Philips of the Netherlands invested $40 million.

TSMC's first chairman, Morris Chang, was born in China, grew up in Taiwan and Hong Kong, and later became a U.S. citizen. He was educated at Harvard University and MIT, and worked for 25 years at Texas Instruments, a pioneer in the U.S. semiconductor industry. During his tenure at Texas Instruments, he helped develop many manufacturing and management technologies that shaped modern chip production.

Image source: Republic of China Presidential Office data TSMC founder Morris Chang participating via video at the 2021 APEC Economic Leaders' Meeting

After taking over TSMC, Morris Chang pioneered a new business model focused on foundry manufacturing. As chip production costs increased and technology became more specialized, more American companies outsourced manufacturing to TSMC.

Currently, major U.S. tech giants like Apple, Nvidia, and Qualcomm still design the most valuable chips in the U.S. and rely on Taiwan for manufacturing.

The theft theory reflects Trump’s mercantilist mindset

Taiwan’s current semiconductor advantage is built on long-term government investment in the electronics industry, as well as the deep roots of American talent, education, and corporate expertise. The industry’s shift in focus is the result of decades of globalization, division of labor, and complex commercial considerations.

Using the term "theft" to summarize this complex history again highlights Trump’s mercantilist thinking and provocative negotiation style, which treats everything as a "bargaining chip" and pursues short-term, visible victories that must be personally declared by him.

Further reading:
TSMC’s Morris Chang: Semiconductor growth momentum shifting from mobile phones to AI, "COUPE" will become a key word

Taiwan-U.S. tariffs set at 15%! Bloomberg: U.S. shifts supply chain to TSMC, Taiwan needs to invest an additional $8B