Particle.news
Download on the App Store
11 ARTICLES
·
1h ago

U.S. Pushes 50-50 Chip Split With Taiwan During Washington Trade Talks

The push is framed as a security-driven effort to reduce U.S. reliance on Taiwan by lifting domestic chip output toward 40% this term.

Image
Image
Image
Image

Overview

  • Commerce Secretary Howard Lutnick said Washington has proposed that half of chips for the U.S. market be manufactured domestically, with the remainder produced in Taiwan.
  • Lutnick set a target of about 40% U.S. chip production by the end of President Trump's current term, estimating investments north of $500 billion would be required.
  • He floated offering Taiwan some form of security guarantee to address concerns that rebalancing production could weaken the island’s so‑called silicon shield.
  • Taiwanese trade negotiators held talks in Washington on lowering a 20% tariff and on potential Taiwanese investment in the U.S., with the delegation calling the meetings positive.
  • Context for the negotiations includes TSMC’s planned $165 billion U.S. investment and a U.S. proposal for 100% chip tariffs with exemptions for companies investing in America, while Taiwan’s recent $10 billion goods pledge has eased tensions.