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Taiwan Rejects U.S. Push for 50-50 Chip Production Split

Taipei says talks center on tariff relief, with supply‑chain cooperation under discussion, not production quotas.

Taiwan Semiconductor Manufacturing Company (TSMC) Factory in Nanjing, Jiangsu Province, China on the evening of September 11, 2025.
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Overview

  • Vice Premier Cheng Li-chiun said Taiwan never committed to moving half its chip output to the United States and that the idea was not discussed in the latest round of talks.
  • U.S. Commerce Secretary Howard Lutnick recently floated a goal of lifting America’s chip production share to 40–50%, describing the concept in a NewsNation interview.
  • Taiwanese officials said negotiations are focused on lowering the current 20% tariff on Taiwan’s exports, securing Section 232 outcomes, and clarifying tariff-stacking exemptions, with “certain progress” reported.
  • Taipei has advanced alternative concessions, including plans to boost U.S. investment and a pledge to purchase $10 billion in U.S. agricultural goods over four years.
  • TSMC is investing up to $165 billion in Arizona, yet Taiwan says the bulk of advanced manufacturing will remain at home as it promotes a cooperative “Taiwan model” to expand U.S. capacity without forced quotas.