TAIPEI: Taiwan will consider supporting its domestic industry, the government said on Wednesday (Jan 29), after US President Donald Trump warned he will soon place tariffs on overseas-made semiconductor chips.

The self-ruled island is a global power in the manufacturing of chips, which are used in products from Apple's iPhones to Nvidia's artificial intelligence hardware and are a key driver of its economy.

"In the next day or two, we will urgently assess whether additional collaboration plans or support measures for the industry are needed," Premier Cho Jung-tai told reporters.

"Taiwan's position in the global supply chain cannot be ignored, and we will continue to maintain this advantage."

Trump, who previously accused Taiwan of stealing the US chip industry, has threatened several key trade partners with tariffs in an attempt to drive companies to shift manufacturing to the United States.

Speaking at a Republican congressional retreat in Miami on Monday, Trump warned the United States will soon place tariffs on foreign-made semiconductor chips, pharmaceuticals and metals such as steel.

The levies could be implemented in the "very near future" so as to "return production of these essential goods to the United States of America", he said.

"They left us and they went to Taiwan ... which is about 98 per cent of the chip business... and we want them to come back," he added.

"The incentive is going to be they're not going to want to pay a 25 per cent, 50 per cent or even 100 per cent tax."