TAIPEI, Jan 28 (Reuters) - Semiconductor business

between Taiwan and the United States is a "win-win" model for

both sides given the high level of complementarity, the island's

economy ministry said on Tuesday responding to tariff threats

from U.S. President Donald Trump.

Home to the world's largest contract chipmaker, Taiwan

Semiconductor Manufacturing Co. ( TSM ) , the island is

a key link in the global technology supply chain for companies

such as Apple ( AAPL ) and Nvidia ( NVDA ).

Trump said on Monday he plans to impose tariffs on imported

chips, pharmaceuticals and steel in an effort to get the

producers to make them in the United States.

"Taiwan and the U.S. semiconductor and other technology

industries are highly complementary to each other, especially

the U.S.-designed, Taiwan-foundry model, which creates a win-win

business model for Taiwan and U.S. industries," Taiwan's economy

ministry said in a statement in response.

The ministry "will continue to pay attention to U.S. policy

going forward, and there will be close contact and cooperate

between the two sides to ensure that Taiwan's and U.S.'

industries and national interests can develop in a mutually

beneficial way in the face of global challenges".

In 2020, under the first Trump administration, TSMC

announced that it would build a $12 billion factory in Arizona

in a win for efforts by the U.S. government to wrestle global

tech supply chains back from China. It later boosted those plans

with the total investment now standing at $65 billion.

TSMC declined to comment on Trump's tariff remarks.

Earlier this month, Taiwan Economy Minister Kuo Jyh-huei

said he only expected a small impact from any tariffs imposed by

Trump on semiconductor exports given their technological

superiority.

In another potential challenge for Taiwan, Trump last week

directed federal agencies to investigate persistent U.S. trade

deficits and unfair trade practices and alleged currency

manipulation by other countries.

Taiwan's trade surplus with the United States surged 83%

last year, compared with 2023, with exports to the U.S. hitting

a record high of $111.4 billion, driven by demand for high-tech

products such as semiconductors.