Taiwan Rejects US Demand to Produce Half of Semiconductors in US
Taiwan's Vice Premier Cheng Li-chiun has clarified the nation's stance on semiconductor production, stating that it 'will not agree' to producing 50% of its semiconductors in the US, a move that would significantly impact the premier league schedule of its domestic industry. This announcement comes amidst ongoing trade negotiations and growing tensions with China, which claims Taiwan as its territory.
The fifth round of US-Taiwan trade talks, led by Vice Premier Cheng, has seen progress in reducing US tariffs on Taiwanese goods. However, the demand for shifting half of Taiwan's chip production to the USA, proposed by US Secretary of Commerce Howard Lutnick, has sparked alarm and criticism among Taiwanese officials and experts.
Taiwan's semiconductor giant, TSMC, has already invested heavily in its domestic production, with a total investment of $165 billion this year alone. In 2020, TSMC invested $12 billion in Arizona, despite industry and public concerns. Despite these investments, Taiwan has vowed to resist US pressure to shift its chip production capacity to the USA.
The US's growing demands, particularly the push for a 50% split in chip production, are straining relations with Taiwan and risk further souring public sentiment towards the USA. Taiwan, under Vice Premier Cheng's leadership, remains firm in its stance, prioritizing its domestic semiconductor industry.
