TAIPEI, July 17 Reuters Taiwan should pay the U.S. for its defence as it does not give the country anything, Republican presidential candidate Donald Trump told Bloomberg Businessweek, sending shares of Taiwanese chip manufacturer TSMC lower on Wednesday.

I know the people very well, respect them greatly. They did take about 100 of our chip business. I think, Taiwan should pay us for defence, Trump said in interview on June 25 that was published on Tuesday.

You know, we39;re no different than an insurance company. Taiwan doesn39;t give us anything.

The United States is Taiwan39;s most important international supporter and arms supplier, but they have no formal defence agreement, unlike what Washington has with South Korea and Japan. The U.S. is, however, bound by law to provide Taiwan with the means to defend itself.

Taiwan39;s government has made defence modernisation a priority, including developing its own submarines, and has said many times the island39;s security rests in its own hands.

Taiwan Premier Cho Jungtai, responding to Trump39;s comments, said Taiwan and the U.S. have good relations despite the lack of formal ties, and is dedicated to bolstering its own defences.

Taiwan has steadily strengthened its defence budget and demonstrated its responsibility to the international community, he told reporters in Taipei.

We are willing to take on more responsibility; we are defending ourselves and ensuring our security.

Taiwan39;s foreign ministry declined…