TAIPEI, Sept 2 (Reuters) - Former U.S. President Donald

Trump "has a lot on his plate" and misunderstands Taiwan's role

in the semiconductor industry, possibly because others have

misinformed him, the island's Economy Minister Kuo Jyh-huei said

on Monday.

Trump, the Republic nominee in November's presidential

election, unnerved democratically governed Taiwan, which is

claimed by China, by saying in July, "Taiwan should pay us for

defence," and that it had taken American semiconductor business.

His remarks pummelled shares of Taiwan's TSMC

, the world's largest contract chipmaker and a major

supplier to companies such as Apple ( AAPL ) and Nvidia ( NVDA )

.

Speaking to reporters in Taipei ahead of this week's Semicon

Taiwan exhibition, set to be attended by top executives from

TSMC, Samsung and SK Hynix ( HXSCF ), Kuo rejected

Trump's remarks.

"Taiwan did not steal the U.S. chip industry," said Kuo,

previously a senior executive of a TSMC supplier, Topco

Scientific.

Taiwan helps complement the U.S. chip industry in

manufacturing, and makes chips as commissioned by U.S. industry,

he added.

"This is a misunderstanding on Trump's part. The president

has a lot on his plate; maybe a friend or a competitor in Taiwan

told him that," Kuo said.

TSMC is spending billions building new factories overseas,

including $65 billion on three plants in the U.S. state of

Arizona, though it says most manufacturing will stay in Taiwan.

TSMC's Arizona factories are a crucial part of the Biden

administration's efforts to boost the chips supply chain and

ensure the United States is less reliant on chips made overseas.

In 2022, the U.S. Congress approved the Chips and Science

Act to boost domestic semiconductor output with a programme of

$52.7 billion in research and manufacturing subsidies.

Taiwan received strong backing from Trump's 2017-2021

administration, including arms sales, which have continued under

the government of President Joe Biden.

Trump spoke to then-Taiwan President Tsai Ing-wen in 2016

shortly after he won the election, prompting anger in Beijing,

as the United States does not officially recognise Taiwan's

government, and glee in Taipei.

Taiwan's government rejects China's sovereignty claims.