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1h ago

Taiwan Rejects US Demand to Shift Half of Chip Production

Taiwan's vice premier rebuffed a 50-50 split proposal during tariff talks triggered by a new 20% levy.

Taiwan Semiconductor Manufacturing Company (TSMC) Factory in Nanjing, Jiangsu Province, China on the evening of September 11, 2025.
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TAIWAN CHINA US
Taiwan produces more than half of the world's semiconductor chips and nearly all of the high-end ones

Overview

  • Vice Premier Cheng Li-chiun said Taipei never agreed to a 50-50 split for chip manufacturing and "will not agree" to that condition.
  • The statement followed Washington talks on easing the Trump administration’s temporary 20% tariff on Taiwanese exports, with the president also threatening a "fairly substantial" tariff on semiconductors.
  • Taipei offered concessions unrelated to chip relocation, pledging more US investment, greater energy purchases, and defense spending above 3% of GDP.
  • US Commerce Secretary Howard Lutnick recently said he proposed the 50-50 plan and described a goal of supplying up to half of US semiconductor needs domestically.
  • ICT goods, including semiconductors, make up more than 70% of Taiwan’s exports to the United States, and the island produces over half of the world’s chips and nearly all high-end ones.