Summarize this content to 2000 words in 6 paragraphs in Arabic It is a coincidence that Taiwan\u2019s deputy economy minister Cynthia Kiang arrives in Washington on Tuesday, just as Taiwan Semiconductor Manufacturing Co\u2019s board meets for the first time in Arizona.But the goal of Kiang\u2019s talks with US officials is very similar to that of board meeting at TSMC\u2019s huge new Arizona chip complex: to minimise the threat posed by tariffs planned by US President Donald Trump.While governments and corporates worldwide are scrambling to adjust to the US president\u2019s enthusiasm for erecting trade barriers, few have as much at stake as Taiwan and its flagship chip manufacturer.Trump wants to tax imported semiconductors and dismantle an incentive scheme under which Washington agreed to subsidise TSMC\u2019s pledged $65bn investment in US production capacity with grants worth $6.6bn.\u201cIn the very near future, we\u2019re going to be placing tariffs on foreign production of computer chips\u2009.\u2009.\u2009.\u2009to return production of these essential goods to the [US],\u201d Trump told House Republicans on January 27.\u201cThey left us and they went to Taiwan\u2009.\u2009.\u2009.\u2009and we don\u2019t wanna give them billions of dollars like this ridiculous programme that Biden has,\u201d he said, adding that foreign chipmakers \u201cdidn\u2019t need money, they needed an incentive. And the incentive is gonna be, they\u2019re not gonna want to pay a 25, 50, or even 100 per cent tax\u201d.Trump has also suggested that TSMC \u2014 which controls more than half of the global market for made-to-order chips \u2014 \u201cstole\u201d the business from the US. And he has accused Taiwan\u2019s government of relying on US security support without paying for it.The views of Howard Lutnick, Trump\u2019s nominee for commerce secretary, are also not reassuring for Taiwan and TSMC. At his nomination hearing last month, Lutnick said TSMC had \u201cleveraged\u201d the US to take chip manufacturing. \u201cWe are too reliant on Taiwan, we need to have\u2009.\u2009.\u2009.\u2009that production in [the US],\u201d he said. Such sentiments strike at the heart of Taiwan\u2019s sense of security. TSMC\u2019s leadership of global cutting-edge chip manufacturing is widely seen as ensuring Taiwan\u2019s importance to the US \u2014 and Washington\u2019s backing against the threat of annexation by China.Kuo Jyh-huei, Taiwan\u2019s economy minister, suggested last Saturday that the delegation led by his deputy Kiang would \u201ctry to explain things more thoroughly to our US friends\u201d.This includes the fact that TSMC customers that specialise in designing chips gain a much larger profit share than the manufacturer does \u2014 and operate without the risks that stem from its enormous capital investments in fabrication plants, Kuo said.Technology industry experts said the notion that Washington could coerce TSMC with tariffs into moving most of its operations to the US was illusory and based on ignorance about the chip industry.Although 70 per cent of TSMC\u2019s revenue came from North America last year, \u201cvery few chips go [directly] to the US\u201d, said Dan Nystedt, vice-president at TriOrient, an Asia-based private investment company. \u201cMost will be shipped to China, India, etc, placed inside iPhones and servers, and then shipped to the US.\u201dSince US tariffs normally apply to finished products rather than subcomponents, it would be \u201ctricky\u201d for US customs to target the overwhelming majority of the chips TSMC makes for US customers, analysts suggested.But Trump tariff policies have already had an impact on Taiwan\u2019s exporters. The first shot in his new trade war \u2014 a 25 per cent tariff on all imports from Mexico and Canada that was announced on February 2 but then postponed until March 1 \u2014 has already forced Taiwanese groups such as Foxconn and Quanta Computer to consider shifting again the production lines that churn out the lion\u2019s share of the world\u2019s servers.When Trump slapped tariffs on a wide range of technology imports from China in his first term, server manufacturers shifted a sizeable portion of their assembly operations to Mexico. \u201cDepending on the final tariff levels, we could shift some of that into the US, or elsewhere,\u201d said an executive at one Taiwanese contract electronics manufacturer.Trump\u2019s approach has spooked companies in Taiwan\u2019s chip sector, too. Rick Tsai, chief executive of MediaTek, the country\u2019s leading chip design house, told investors last week the company was running simulations of the impact of US tariffs, but their effect was \u201cvery unpredictable\u201d.TSMC\u2019s management faces a delicate balancing act.On the one hand, the company has to convince Trump to honour the Biden administration\u2019s subsidies deal, which it needs to make its Arizona investment plans feasible. On the other, TSMC executives believe moving too much production to the US would undermine its business model and prove politically too difficult back home.\u201cThe company needs to be as sensitive to the Taiwan government as it is to the US government and US companies,\u201d said a person close to TSMC. A critical sticking point is TSMC\u2019s Taiwan-based global research and development centre. The company has long been able to quickly scale up production at each new generation of processing technology while maintaining high yields, or the proportion of chips produced without defects. It credits much of this success to its practice of sending research engineers to the fab floor to tweak the tools.Managers believe neither moving R&D to the US nor setting up a parallel R&D organisation there are options.Analysts said that as a compromise, TSMC could accelerate the timetable for its Arizona plants to bring advanced technology to the US and possibly commit to additional investment. The company\u2019s first Arizona plant is in commercial production with 4 nanometre chips, one generation behind the most advanced technology used in mass production in Taiwan. It has pledged to bring 2nm chip production to the US in 2028, about two years after its start in Taiwan, and to bring a third fab online in Arizona by 2030.The board could also decide to build capacity in the US for advanced packaging, a fabrication phase crucial to the most advanced chips that TSMC has kept in Taiwan, people familiar with the company said.While that would increase TSMC\u2019s commitment to the US, it would still keep Taiwan as the epicentre of global chip manufacturing.Observers believe TSMC\u2019s US customers will have to help convince Washington that such moves are enough to justify holding off on the tariffs. \u201cApple and Nvidia and other chip designers, they would bear the brunt [of chip tariffs],\u201d said Nystedt.<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic It is a coincidence that Taiwan\u2019s deputy economy minister Cynthia Kiang arrives in Washington on Tuesday, just as Taiwan Semiconductor Manufacturing Co\u2019s board meets for the first time in Arizona.But the goal of Kiang\u2019s talks with US officials is very similar to that of<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-201981","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/201981","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=201981"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/201981\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=201981"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=201981"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=201981"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}