Taipei: The Cabinet on Thursday dismissed U.S. President Donald Trump's allegation that Taiwan "stole" the U.S. chip industry, asserting that Taiwan's semiconductor success is due to the independent efforts of local companies. Trump had made the accusation during an interview with Fox News while visiting Beijing, suggesting that the decline of the U.S. semiconductor industry was due to previous administrations' lack of imposing tariffs on Taiwan-made semiconductors.

According to Focus Taiwan, Executive Yuan spokesperson Michelle Lee addressed Trump's comments in a news conference, emphasizing that Taiwan supplies semiconductors globally and has achieved its competitive status through legitimate means. She explained that Vice Premier Cheng Li-chiun had communicated to U.S. negotiators that Taiwan's semiconductor industry is the result of decades-long development.

Additionally, Executive Yuan Secretary-General Xavier Chang responded to Trump's claims during a legislative session with Kuomintang Legislator Hung Mong-kai. Chang highlighted that Taiwan did not steal chips but rather supplied them worldwide. He attributed Taiwan Semiconductor Manufacturing Co.'s (TSMC) achievements to three decades of technological advancement following a technology transfer agreement with the Radio Corporation of America (RCA).

The Cabinet's rebuttal follows comments from Robert Tsao, founder of United Microelectronics Corp. (UMC), who urged the Taiwanese government to counter Trump's accusations. Tsao warned that Trump's statements could have serious diplomatic repercussions and were part of a strategy to pressure Taiwanese companies to move production to the United States.

Tsao emphasized the origins of Taiwan's semiconductor expertise, tracing back to a US$3.5 million technology transfer from RCA in 1976. This agreement enabled the Industrial Technology Research Institute (ITRI) to acquire advanced manufacturing technology, which laid the foundation for Taiwan's thriving semiconductor industry.