Why Trump wants chipmakers to move manufacturing back to US after Xi summit

President Trump has called on Taiwanese chipmakers to shift production to the US following his high-stakes summit with Chinese President Xi Jinping in 2026. Trump emphasized the urgency, stating that China’s stance on Taiwan—viewed as part of its mainland—poses a direct threat to global chip supply chains, with 90% of advanced semiconductors currently produced there. He claimed the US already has Taiwanese firms moving operations domestically and predicted a 40% to 50% share of the world’s chip business by the end of his term. The push stems from China’s unyielding position on Taiwan, where Beijing has warned of potential military action if Taiwan declares independence. During the summit, Xi reportedly cautioned Trump that mishandling Taiwan could destabilize US-China relations, risking broader conflict. Trump framed the issue as a critical priority, stating that relocating chip production to the US would strengthen national security amid rising geopolitical tensions. Semiconductors are vital for AI and advanced technologies, making Taiwan’s dominance in manufacturing a strategic concern. Trump’s remarks to Fox News underscored the urgency, describing the situation as ‘heated’ and emphasizing the need for US self-sufficiency in chip production. The call follows broader efforts to reduce reliance on foreign manufacturing, particularly in sectors critical to defense and AI development. China’s foreign ministry reiterated its stance, warning that improper handling of Taiwan could lead to clashes and jeopardize bilateral relations. The summit highlighted the fragility of US-China ties, with Taiwan’s status remaining a contentious issue. Trump’s push for domestic chip production aligns with broader economic and security strategies aimed at countering China’s technological influence.