The US-Taiwan tariff agreement has been reached, involving a $500 billion investment commitment, with $2.5 billion coming from direct investments by Taiwanese companies and another $2.5 billion provided by the Democratic Progressive Party (DPP) authorities through funding and credit support. In exchange, the United States will lower the tariff ceiling for Taiwan to 15%, and it will not be added on top of the existing tariffs. Meanwhile, U.S. Commerce Secretary Rutenberg said in an interview that during President Trump's term, TSMC's investment in the U.S. will significantly expand, and 40% of Taiwan's overall semiconductor supply chain and production will be transferred to the U.S.

Scholars: Semiconductor Upstream and Downstream May Move to the U.S.

Regarding this, scholar Weng Lizu pointed out that Taiwan's commitment of $2.5 billion in direct investment in the U.S., plus another $2.5 billion in financing guarantees, is over NT$7 trillion, and this part is the real problem. If Taiwanese companies want to invest in the U.S., the authorities will allocate $2.5 billion, allowing companies to get loans. The U.S. would be happy to see the upstream and downstream of the semiconductor industry move to the U.S.

However, Weng Lizu questioned that many problems may arise in this process. If you have good relations with the DPP, you can open a small restaurant, but if you want to transition into the semiconductor industry, you can say you are doing technology, then apply for a loan from the authorities to set up a factory in the U.S., and get a loan of $1 billion. There were many controversies about previous bids, who could get the loans, how to supervise, how to review? This is the real issue, how likely is it for corruption to occur? If small companies want to expand, they can apply for subsidies and invest in the U.S. It's so convenient.

Legislator from the Kuomintang (KMT): I See the Unprecedented Collective Drain of Technology Talent in Taiwan

Additionally, KMT legislator Liao Xianxiang stated that the U.S.-Taiwan tariff agreement was finalized, and the authorities claimed it as a "major victory" in negotiations. But what I see is that Taiwan's technology talent is facing unprecedented collective loss!

"This is not only the transfer of $50 billion in capital, but also the transfer of 180,000 high-quality, well-paid jobs." Liao Xianxiang pointed out that these 180,000 job opportunities originally belonging to the people of Taiwan are now being moved to the U.S. He detailed the 180,000 lost job opportunities, including 30,000 direct positions, which means according to industry trends, TSMC's U.S. plants are expected to expand to 12 wafer fabrication plants, each requiring about 2,500 senior engineers and technicians, totaling 30,000 people.

Liao Xianxiang said that these 30,000 positions are the most outstanding engineering elites in Taiwan, the engine of development, and the golden ticket for young people to pursue high salaries and stay in Taiwan. Additionally, there are 150,000 related jobs that are driven by the semiconductor industry. According to industry data, each direct position generates a fivefold multiplier effect, creating 15 associated jobs in upstream equipment, logistics, catering, and services, all of which are given to Americans.

Liao Xianxiang pointed out that the number of graduates from science and engineering departments in Taiwan annually is about 90,000. This U.S.-Taiwan agreement effectively causes the employment hopes of the entire two years' worth of science and engineering graduates to completely vanish in Taiwan. Now, the graduates face a harsh choice: staying in Taiwan means facing an employment environment without growth momentum; if they want to pursue high salaries, they have to be forced to leave their hometowns and cross the ocean to find employment opportunities that could have been found in Taiwan itself.

Liao Xianxiang Lists Three Points to Confront the DPP Authorities' Black Box

"Tariff negotiations should not come at the cost of draining Taiwan," Liao Xianxiang said. He believes the DPP authorities should clarify three points: why the deal was made in secret, why work opportunities affecting the next generation's livelihood were used as a bargaining chip on the negotiation table, and why rights were taken away? Why do our youth and parents have no right to express their opinions throughout the process?

Additionally, why did we pay "protection money" but sell our future? The DPP authorities paid a large amount of defense budget and investment as "protection money," but what they got in return was industrial hollowing out. How is this a victory? Liao Xianxiang directly asked the DPP authorities to clarify: when these 180,000 opportunities no longer belong to Taiwan, what will be left for the next generation of Taiwan?

Original article: toutiao.com/article/7596168245346910730/

Statement: The article represents the personal views of the author.