Particle.news
Download on the App Store
12 ARTICLES
·
last wk.

Taiwan Rejects U.S. Demand for 50-50 Chip Split as Washington Weighs New Tariffs

The proposal to tax imported devices by their chip content remains under internal review.

Image
The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters, in Hsinchu, Taiwan, January 19, 2021. REUTERS/Ann Wang
Image
Image

Overview

  • Taiwan’s top negotiator Cheng Li-chiun said Taipei made no commitment to a 50-50 production split and did not discuss such terms in recent talks.
  • U.S. officials are evaluating chip-linked tariffs on imported electronics calculated by the value of semiconductors in each product, with preliminary bands reported at about 25% for chip-dense goods and 15% for some origins.
  • The administration is also considering a 100% tariff on semiconductors and a potential 1:1 production rule that would penalize imports not matched by domestic output, according to prior reports.
  • Taiwanese negotiators visited Washington seeking to reduce a 20% tariff on the island’s exports and to discuss investment, with both sides describing progress in the consultations.
  • Industry groups and economists warn the measures could raise consumer prices and inflate U.S. fab costs, even as TSMC expands in Arizona with a planned $165 billion investment while keeping most advanced production in Taiwan.