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

The high-stakes Trump-Xi 2026 summit has finally come to an end. Soon after the meeting, the President pushed the chip manufacturers to bring manufacturing facilities back to America.

Talking to Fox News, President Trump has urged Taiwanese chipmakers to immediately move their production to the US as conversation with Chinese President Xi Jinping confirmed how eager China is to take over Taiwan.

Given the growing importance of semiconductors and chips in today’s digital world, Trump also highlighted the dominance of Taiwan in advanced semiconductors as 90 percent of production comes from this country.

Trump said, “I would like to see everybody making chips in Taiwan come into America. To be honest with you, I think it's the greatest thing you can do. It's a heated situation. There is no question about it.”

“As you know, we have massive amounts of chip companies now from Taiwan already coming in. We expect to have 40% to 50% of the world chip business by the end of my term.”

The rationale behind this push comes from Beijing uncompromised stance on the status of Taiwan as China considers the country as a part of its mainland and it is determined to take it even by force.

According to Trump, Taiwan has always been a most important topic for China. Once Taiwan goes independent, clashes can escalate and there might be a war.

During the summit, Taiwan also remained a top issue between the US and China. President Xi also issued a stark warning to Trump as per Chinese foreign ministry, “If the issue is handled properly, the relationship can remain generally stable.”

“Otherwise, the two countries will have clashes and even conflicts, putting the entire relationship in great jeopardy,” the statement reads.

In the competitive artificial intelligence landscape, Chips are essential for AI models and technological advances, and Taiwan is known as the world's chip manufacturing hub.