Amid rising US tariffs and trade pressures, Taiwan’s tech resilience stands strong, with giants like Pegatron confident in the island’s industry navigating global challenges.
The US has imposed a 20% tariff on imports from Taiwan. Despite this pressure, Pegatron chairman T.H. Tung remains confident in Taiwan’s ability to navigate these challenges.
Speaking recently at the AI WAVE SHOW in Taipei as honorary chairman of the Taipei Computer Association, he underlined Taiwan’s high-tech sector’s resilience. Tung also pointed to the country’s strong export performance in the first half of 2025, with its trade surplus with the US already surpassing the total for 2024.
This robust demand, particularly for products critical to AI and cloud infrastructure, positions Taiwan as a vital global technology partner, not a market invader.
However, Tung raised concerns about traditional industries and agriculture, which are more exposed to tariff impacts. He urged the Taiwanese government to introduce strategies to support these sectors.
The situation is further complicated by Japan and South Korea’s recent agreements, which have secured a 15% tariff rate, making Taiwan’s negotiations particularly important.
Meanwhile, according to a report by Digitimes Asia, Taiwanese President William Lai assures that this measure is temporary, as discussions are ongoing.
Tung also highlighted the differences in negotiation leverage between Taiwan, Japan, and South Korea. While the GDP per capita is similar, the larger population and economic scale of Japan and South Korea provide them with more bargaining power in securing US investments.
Japan has committed US$550 billion, and South Korea US$350 billion, with Taiwan’s commitments, including those from Taiwan Semiconductor Manufacturing Company (TSMC), at similar levels.
Despite these challenges, Tung stressed that Taiwan’s semiconductor leadership stems from manufacturing excellence rather than tariff advantages. He dismissed concerns that the tariffs would significantly hurt Taiwan’s semiconductor sector, pointing to Intel as an example of a company that thrives despite not being subject to tariffs.
He concluded that the impact of tariff conflicts may ultimately harm US consumers and global trade, with Taiwan’s role in upcoming negotiations set to shape the future of its semiconductor industry.
