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1h ago

U.S. Seeks 50-50 Chip Production Split With Taiwan, Lutnick Says

The commerce chief is targeting roughly 40% domestic output this term to cut reliance on Taiwan.

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Overview

  • Lutnick said Washington has discussed a "50-50" arrangement with Taipei so that half of chips for U.S. needs are manufactured domestically.
  • He projected the effort would take more than $500 billion in U.S. investment and set an interim goal of about 40% domestic output by the end of President Trump's current term.
  • The commerce secretary downplayed Taiwan’s "Silicon Shield" and suggested security assurances, while noting the U.S. would still rely on Taiwan for the other half of supply.
  • TSMC remains central to advanced semiconductors and has raised its planned U.S. investment to $165 billion, with its most advanced production still in Taiwan.
  • The administration has proposed 100% semiconductor tariffs with exemptions for firms investing in U.S. plants, as U.S.–Taiwan trade talks continue and could influence rates for Taiwanese businesses.