AI-Summary – News For Tomorrow
Taiwan rejected a U.S. proposal to manufacture 50% of the chips it currently supplies to America, according to Taiwan’s top trade negotiator, Cheng Li-chiun. The U.S. Commerce Secretary, Howard Lutnick, suggested the split to reduce American reliance on Taiwanese chip production, currently fulfilling 95% of U.S. demand. The proposal, aimed at “onshoring” chip manufacturing in the U.S., was reportedly never discussed during trade talks. Previous administrations, including that of Donald Trump, have criticized Taiwan’s dominance in the chip industry. Taiwanese politicians fear the move would damage their technology sector and weaken the “Silicon Shield,” the island’s strategic importance in chip production believed to deter Chinese aggression.
News summary provided by Gemini AI.
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.
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. Â
“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.”Â
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.
“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.
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.”
