U.S. President Donald Trump's threat of tariffs on semiconductor chips has complicated Taiwan's bid to remain a global powerhouse in the critical sector and stay onside with key backer Washington, analysts said.

Since taking office last month, Trump has warned of sweeping tariffs against some of his country's biggest trade partners to push companies to shift manufacturing to the United States and reduce its huge trade deficit.

The latest levies announced last week include a 25% or higher tax on imported chips, which are used in everything from smartphones to missiles.