Taiwan rejects US chip production proposal
a day ago
- #US-Taiwan relations
- #semiconductors
- #trade negotiations
- Taiwan rejects US proposal to relocate half of global semiconductor production to the US.
- Taiwan's Vice Premier Cheng Li-chiun confirms the 50-50 chip production split was never discussed in recent US-Taiwan tariff negotiations.
- Taiwan produces over 60% of the world's semiconductors and 90% of advanced chips used in AI, defense, and consumer electronics.
- The US aims to reduce reliance on Taiwan for chip supplies due to geopolitical tensions with China.
- TSMC is investing $165 billion in US plants but will keep most production in Taiwan due to ecosystem advantages.
- Taiwan's 20% tariff on exports to the US is a key point in trade negotiations, with Taipei pushing for reductions.
- Experts argue Taiwan's semiconductor dominance is hard to replicate, making a 50-50 split unrealistic.
- Taiwan views semiconductors as both an economic backbone and a strategic shield.
- The US CHIPS Act aims to increase US semiconductor production to 20% by 2030.
- Taiwan and the US continue negotiations on tariffs, tech partnerships, and agricultural trade.