The US wants 40% of Taiwan’s semiconductor production to take place in the US – a proposal firmly rejected by Taiwan.
Taiwan’s vice-premier Cheng Li-chiun said it would be “impossible” to move 40% of the country’s semiconductor production capacity, rejecting proposals that it could simply relocate its established supply chain ecosystem outside the country.
This is the latest in the semiconductor trade and technology negotiations that have been ongoing between the Taiwan and the US for many months.
Taiwan is home to the world’s largest contract chipmaker, TSMC, and the US is its biggest customer base; soaring demand for AI-related technology has only fuelled Taiwan’s trade surplus with the country. While TSMC has invested billions into building chip factories in the US, the bulk of its production is in Taiwan.
US president Donald Trump has accused Taiwan of taking business away from US-based chipmakers. While the US initially imposed a 20% broad tariff on Taiwan’s exports to the country...