TAIPEI (TVBS News) — Economic Minister J.W. Kuo (郭智輝) announced Wednesday (June 25) that Taiwan's semiconductor, AI, and cybersecurity sectors will likely benefit as the U.S. imposes punitive measures on the "red supply chain." Kuo expects orders to shift to Taiwan due to these developments. He highlighted this potential shift during a report at the Legislative Yuan (立法院).
Kuo noted that the 90-day grace period for tariff deferrals is nearing its end, and negotiations are ongoing. He expressed optimism that the tariff rates will develop favorably. Kuo also addressed concerns about potential spillover effects from China's high tariffs, stating that the government is working to prevent origin washing and smuggling into the Taiwanese market.
Democratic Progressive Party (DPP, 民進黨) Legislator Lai Jui-lung (賴瑞隆) inquired about Taiwan's economic outlook for the latter half of the year. Kuo responded that after the U.S. tariff decisions are finalized on July 9, Taiwan's economic growth rate should remain at 3%. Kuo also noted that while advanced semiconductor processes are performing well, Taiwanese manufacturers will benefit from the demand for mature processes outside the red supply chain.
In response to DPP Legislator Chen Ting-fei's (陳亭妃) questions about the New Taiwan dollar's appreciation, Kuo mentioned that the Ministry of Economic Affairs (經濟部) has provided low-interest loans to small and medium enterprises to reduce operating costs. He emphasized that while only 23% of domestic industry exports go to the U.S., the Ministry is assisting businesses to enhance competitiveness for the remaining 77% of the market outside the U.S.
