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4h ago

Taiwan Rejects U.S. Push to Relocate Half of Chip Production

Taipei says tariff talks continue under a 20% U.S. 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 Taiwan never agreed to a 50-50 chip split and will not accept such a condition after returning from talks in Washington.
  • U.S. Commerce Secretary Howard Lutnick recently advocated moving 50% of Taiwan’s chip output to the United States and outlined a goal of lifting U.S. market share to 40% to 50%.
  • Cheng reported “some progress” in negotiations over U.S. tariffs, which currently impose a temporary 20% levy on Taiwanese exports.
  • Taiwan has offered concessions short of relocating chip capacity, including more U.S. investment, increased energy purchases, higher defense spending above 3% of GDP, and a plan reported to buy about $10 billion in U.S. farm goods.
  • TSMC is building fabs in Arizona with reported commitments of about $165 billion, but the company says most advanced manufacturing will remain in Taiwan, which produces more than half of the world’s chips and nearly all high-end semiconductors.