Trump calls $14 billion Taiwan arms deal a 'negotiating chip' with China after Xi said Taiwan issue could lead to 'clashes and even conflicts'

Following a meeting with Chinese President Xi Jinping, former U.S. President Donald Trump described a pending $14 billion arms sale to Taiwan as a 'very good negotiating chip' with China. The package,... Read original →

Trump framing the $14B Taiwan arms deal as a 'negotiating chip' reveals Washington’s instrumental view of Taipei, accelerating semiconductor supply chains’ geopolitical realignment. Technically, any Taiwan Strait escalation disrupting TSMC’s EUV-based 3nm operations would cripple NVIDIA’s AI chip ramp, Apple’s SoC cycles, and AMD/Qualcomm roadmaps. Compliance costs will surge: U.S. fabs like Arizona’s won’t offset Taiwan dependency before 2026, while export controls and 'friend-shoring' inflate manufacturing expenses by 15–20%. Strategically, China may restrict critical gases (e.g., neon) and boost SMIC’s N+3 node; TSMC, in turn, leverages its 'silicon shield' to demand explicit U.S. security guarantees. Over the next 12–24 months, a tripolar chip order emerges—U.S./EU/Japan reshoring mature nodes, China racing for equipment self-reliance, and Taiwan clinging to advanced-node monopoly—but miscalculation risks triggering global tech inflation.