Taiwan rejects U.S. proposal of ’50-50′ chip production, says trade talks focused on tariffs

Taiwan rejects U.S. proposal of ’50-50′ chip production, says trade talks focused on tariffs


Taiwan Semiconductor Manufacturing Company, Limited at Hsinchu Science Park.

Annabelle Chih | Getty Images News | Getty Images

Taiwan will not accept Washington’s proposal to locally manufacture half the chips it currently supplies to the U.S., the island’s top trade negotiator said.

Speaking to reporters, Cheng Li-chiun, also the country’s vice premier, said on Wednesday that the proposal for a “50-50” split in semiconductor production was not even discussed, as she returned from trade talks in the U.S., according to Taiwan’s Central News Agency.

Cheng said the talks were focused on lowering tariff rates, securing exemptions from tariff stacking — additional duties — and reducing levies on Taiwanese exports. Taiwan currently faces a “reciprocal” tariff rate of 20%.

Washington has held discussions with Taipei about the “50-50” split in semiconductor production, which would cut American reliance on Taiwan, Commerce Secretary Howard Lutnick said last weekend in an interview to NewsNation, adding that currently 95% of the U.S. demand was met via chips produced within Taiwan.  

“My objective, and this administration’s objective, is to get chip manufacturing significantly onshored — we need to make our own chips,” Lutnick said. “The idea that I pitched [Taiwan] was, let’s get to 50-50. We’re producing half, and you’re producing half.” 

U.S. President Donald Trump had also taken aim at the island’s dominance in chips earlier this year, accusing it of “stealing” the U.S.’ chip business.

The Office of the U.S. Trade Representative and Taiwan’s Ministry of Economic Affairs did not immediately respond to CNBC’s request for comments.

Lutnick’s proposal has been condemned by Taiwan’s politicians, with Eric Chu, chairman of the island’s principal opposition party Kuomintang, calling it “an act of exploitation and plunder,” according to the Central News Agency report.

“No one can sell out Taiwan or TSMC, and no one can undermine Taiwan’s silicon shield,” Chu said, referring to Taiwan Semiconductor Manufacturing Company, the world’s leader in advanced chip manufacturing.

Taiwan’s critical position in global chips production is believed to have assured the island nation’s defense against direct military action from China, often referred to as the “Silicon Shield” theory.

In his NewsNation interview, Lutnick downplayed the “Silicon Shield,” arguing that Taiwan would be safer with more balanced chip production between Washington and Taipei. Beijing views the democratically governed island of Taiwan as its own territory and has vowed to reclaim it by force if necessary, while Taipei rejects those claims

Taiwan People’s Party Chairman Huang Kuo-chang reportedly called Lutnick’s proposal an attempt to “hollow out the foundations of Taiwan’s technology sector.”



Source

Bitcoin rallies to within 1% of all-time high, gaining safe haven status during shutdown
World

Bitcoin rallies to within 1% of all-time high, gaining safe haven status during shutdown

CHONGQING, CHINA – JULY 17: In this photo illustration, a person holds a physical representation of a Bitcoin (BTC) coin in front of a screen displaying a candlestick chart of Bitcoin’s latest price movements on July 17, 2025 in Chongqing, China. (Photo illustration by Cheng Xin/Getty Images) Cheng Xin | Getty Images News | Getty […]

Read More
European stocks end positive after touching fresh record high
World

European stocks end positive after touching fresh record high

European stocks ended higher on Friday, building on momentum that has pushed regional indexes higher this week. The pan-European Stoxx 600 closed the session up 0.5%, having added 0.5% in Thursday’s session after reaching a record high earlier in the day, marking the index’s fifth consecutive day of gains. Major bourses across the region made […]

Read More
Tesla had blowout quarter for sales of new cars. Why the EV stock fell sharply anyway
World

Tesla had blowout quarter for sales of new cars. Why the EV stock fell sharply anyway

Tesla posted stronger-than-expected third-quarter vehicle deliveries , but shares fell sharply as Wall Street analysts flagged looming headwinds ranging from the end of U.S. electric vehicle tax credits to continued pressure on profit margins. Quarterly vehicle deliveries through Sept. 30, when a key tax credit for EV buyers in the U.S. expired, climbed 7% during […]

Read More