TAIPEI (Taiwan News) — Taiwan should ensure its semiconductor industry is protected in any tariff negotiations with the US, Compal Group President Hsu Shih-hsiung (許勝雄) said Tuesday.

Speaking at the Taiwan Venture Capital Summit, Hsu said many Taiwanese companies have already expanded or plan to expand production in the US to offset tariff pressures, per CNA. However, he noted the US remains a high-cost environment, with expensive labor and slower corporate problem-solving compared to Taiwan’s 24-hour work culture.

Hsu said semiconductors are vital to Taiwan’s national strategy and corporate growth. He urged the government not only to safeguard the chip sector but also to support traditional industries such as machinery, tools, and textiles.

Tariff impacts will vary by sector, he said, with the automotive industry facing greater risks than consumer electronics. Many electronics products already carry low or zero tariffs under WTO rules, limiting potential damage from tariff changes.

Globally, reciprocal tariffs stand at about 10% for the UK, 15% for Japan, and 19%–20% for most Southeast Asian nations, Hsu said. A gap of a few percentage points remains manageable for Taiwanese industries, he added.

Other industry leaders at the meeting echoed his concerns. Compal Chair Chen Jui-tsung (陳瑞聰) said Taiwan’s semiconductor and ICT exports largely remain tariff-exempt and that the company has already shifted US-bound production out of China, per Anue.