Taipei: Rock Hsu, founder and president of the Taiwan-based electronics conglomerate Kinpo Group, has called on the government to protect the nation’s semiconductor industry amid ongoing tariff negotiations with the United States. Addressing reporters at the 2025 Taiwan Venture Capital Summit, Hsu emphasized the indispensable role semiconductors have played in Taiwan’s economic growth.

According to Focus Taiwan, Hsu advised that while pursuing reduced tariffs and economic advantages from the U.S., the government should avoid making concessions that could compromise Taiwan’s global competitiveness. He acknowledged the necessity of some trade-offs to achieve lower tariffs but urged the negotiation team to prioritize national interests.

Semiconductors constituted 32.3 percent of Taiwan’s total exports in the first seven months of the year, generating US$109.78 billion, a 23.5 percent increase from the previous year, as per the Ministry of Finance. Vice Premier Cheng Li-chiun, leading Taiwan’s delegation in talks with the U.S., confirmed the government’s commitment to negotiating a reduction of the current 20 percent blanket tariff and securing a favorable position on the proposed U.S. semiconductor tariff.

In April, the U.S. initiated a Section 232 investigation under the Trade Expansion Act of 1962 regarding a potential tariff on semiconductor imports. Recently, U.S. President Donald Trump announced a planned 100 percent tariff on imported semiconductor chips, exempting those manufactured within the U.S.

Taiwan Semiconductor Manufacturing Co. (TSMC) is anticipated to receive an exemption due to significant investments in Arizona, including a US$65 billion ongoing project and a pledged US$100 billion.

Hsu noted that many Taiwanese companies are investing in the U.S. but face obstacles like high production costs and cultural differences. He highlighted the difficulty of replicating Taiwan’s 24-hour work culture in the U.S. Additionally, he advocated for protections for traditional industries and suggested capping the Taiwan dollar’s appreciation to mitigate tariff impacts.

The Chinese National Federation of Industries (CNFI) supported Hsu’s stance, proposing the government freeze an electricity rate hike and delay carbon fee collections set for 2026 to alleviate financial pressure on businesses. The CNFI also recommended allowing the Taiwan dollar to depreciate by at least 10 percent to enhance exporters’ competitiveness.

Tariffs have been compounded by preexisting most-favored-nation duties and industry-specific trade remedy tariffs since August 7. The government’s negotiating team has committed to seeking tariff stacking relief in future discussions with the U.S.