Taiwan Rejects U.S. Proposal for 50-50 Split in Global Chip Production

Taiwan has firmly rejected a proposal from the U.S. Trump administration suggesting a 50-50 split in global semiconductor production. The proposal, reportedly introduced by U.S. Commerce Secretary Howard Lutnick, aimed to balance chip manufacturing between the U.S. and Taiwan.

However, Taiwan's Vice Premier Cheng Li-chiun clarified that this specific arrangement was "not discussed" during the recent trade negotiations.

In a statement released on Wednesday, Taiwan's Executive Yuan emphasized that the discussions focused on standard trade concerns, including lowering tariff rates, securing exemptions from tariff stacking, and reducing levies on Taiwanese exports under Section 232 of the U.S. Trade Expansion Act. The U.S. had initiated a Section 232 investigation into potential tariffs on semiconductor imports earlier this year, which remains ongoing.

The U.S. proposal to relocate half of Taiwan's semiconductor production to the United States was met with criticism from Taiwan's political opposition, who labeled the idea as exploitative and counterproductive to supply chain cooperation. Taiwan has consistently emphasized the strategic importance of maintaining local semiconductor production and its commitment to a balanced and cooperative global supply chain.

This development underscores the ongoing tensions in the global semiconductor industry, as nations seek to bolster domestic production capabilities while navigating complex international trade relationships.