Taiwan rejected on Wednesday a United States proposal to relocate half its semiconductor manufacturing to American territory. Vice Premier Cheng Li-chiun confirmed negotiators made no commitments to divide chip production equally between the nations after returning from tariff discussions in Washington.
Commerce Secretary Howard Lutnick requested the split during a weekend television interview, but Taiwanese officials dismissed the demand as harmful to national security interests. Opposition legislator Hsu Yu-chen characterized the proposal as plunder rather than cooperation, while warning it would eliminate Taiwan's strategic protection.
TSMC previously committed $165 billion to Arizona facilities after Washington applied pressure in 2020. Analysts argue concentrated production gives Taiwan economic leverage against potential Chinese military action, while dispersed manufacturing weakens supply chain efficiency.
The disagreement strains bilateral relations as Taipei seeks tariff reductions on exports facing 20 percent duties. Public sentiment grows wary of American pressure threatening the island's semiconductor dominance.
Commerce Secretary Howard Lutnick requested the split during a weekend television interview, but Taiwanese officials dismissed the demand as harmful to national security interests. Opposition legislator Hsu Yu-chen characterized the proposal as plunder rather than cooperation, while warning it would eliminate Taiwan's strategic protection.
TSMC previously committed $165 billion to Arizona facilities after Washington applied pressure in 2020. Analysts argue concentrated production gives Taiwan economic leverage against potential Chinese military action, while dispersed manufacturing weakens supply chain efficiency.
The disagreement strains bilateral relations as Taipei seeks tariff reductions on exports facing 20 percent duties. Public sentiment grows wary of American pressure threatening the island's semiconductor dominance.
