Taiwan’s Economy Minister, Kuo Jyh-huei, expressed that former President Donald Trump misunderstood Taiwan’s role in the semiconductor industry.

What Happened: Trump had earlier suggested that Taiwan should compensate the U.S. for defense, accusing the island nation of taking American semiconductor business. This statement led to a significant drop in shares of Taiwan Semiconductor Manufacturing Co Ltd. (NYSE:TSM), the world’s largest contract chipmaker and a major supplier to companies such as Apple Inc. and Nvidia Corp.

In response to Trump’s remarks, Kuo, a former senior executive of a TSMC supplier, Topco Scientific, stated, “Taiwan did not steal the U.S. chip industry.” He added that Taiwan complements the U.S. chip industry in manufacturing and makes chips as commissioned by companies in the U.S.

“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, according to Reuters on Monday.

He also emphasized that TSMC is investing billions in building new factories overseas, including $65 billion on three plants in the U.S. state of Arizona, but most manufacturing will remain in Taiwan.

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Why It Matters: Trump’s comments on Taiwan’s role in the semiconductor industry have stirred a series of reactions. Taiwan’s Foreign Minister, Lin Chia-lung, had earlier asserted that Taiwan must depend on itself for defense, following Trump’s criticism.

Following Trump’s remarks, Taiwan’s Premier Cho Jung-tai announced a $100 billion economic and social reform plan, aiming to attract nearly $100 billion in investments.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari