Trump says Taiwan should pay the U.S. for defense; shares of chip giant TSMC fall

Former U.S. President Donald Trump, who is vying for another White House mandate, said he thinks that Taiwan should pay the U.S. for defense, claiming that the country "doesn't give us anything."

His comment was in response to a question on whether he would defend Taiwan against China, as part of an interview with Bloomberg Businessweek published Tuesday.

Beijing considers democratically governed Taiwan as a part of its territory, and Chinese President Xi Jinping has previously said reunification with the mainland was "a historical inevitability." 

Trump said, "Taiwan should pay us for defense."

"You know, we're no different than an insurance company. Taiwan doesn't give us anything," he added.

Trump, a Republican, appeared to link his comments to Taiwan's semiconductor industry, which is one of the most advanced in the world.

"[Taiwan] did take about 100% of our chip business," Trump said.

The U.S. was once a major player in semiconductor manufacturing, but shifting trends in the industry, such as companies moving away from making their own chips, led to the rise of Taiwan Semiconductor Manufacturing Co., or TSMC, and other major Taiwanese firms. Taiwan is expected to account for 66% of production of the world's most advanced chips this year, according to TrendForce data.

The U.S. is expected to account for 6% of manufacturing.

TSMC is the world's largest and most advanced chipmaker responsible for manufacturing chips for major American firms like Apple and Nvidia.

Shares of TSMC closed 2.4% lower in Taiwan after the release of Trump's comments.

For several years, there has been increasing concern over the world's reliance on the concentration of chip manufacturing in Taiwan, and what would happen in the event of a Chinese attack