Trump accuses Taiwan of stealing U.S. chip industry. Here's what the election could bring
CNBCNOV 2024
Taiwan Rejects U.S. Proposal for 50-50 Chip Production Split
Above: An AI Expo in Taipei, Taiwan, on March 26, 2025. Image copyright: Daniel Ceng/Anadolu/Getty Images
The Spin
Pro-establishment narrative
Taiwan owes its very survival to U.S. protection, yet it balks at a fair 50-50 split on chip production while pocketing billions in subsidies. To spurn America’s hand after siphoning off its industry is not strategic caution but sheer ingratitude — an ally demanding insurance without paying the premium, all while relying on U.S. lives to shield its immense wealth.
Establishment-critical narrative
Taiwan is irreplaceable to America — home to 92% of the world’s most advanced chips, powering everything from iPhones to missile systems. No amount of money can quickly replicate its decades-old mastery or global supply dominance. To lose Taiwan would cripple U.S. industry, imperil security, and hand China economic leverage and strategic control of the Pacific.
Pro-China narrative
Taiwan is merely reaping what it sowed. By tethering its fortunes to Washington’s whims, it drained its own talent, hollowed out its industry, and handed leverage to a partner that sees it as expendable. Having built its empire on America’s back, Taiwan now finds itself cornered.