Taiwan has firmly rejected US pressure to shift half of its semiconductor production to American soil, stressing that Taipei "will not agree" to such a demand.
The island's lead tariff negotiator ,Vice Premier Cheng Li-chiun, told reporters that,"I want to clarify that this is the US's idea. Our negotiation team has never made a 50-50 commitment to a chip split."
"Please be rest assured that we did not discuss this issue this time, and we will not agree to such a condition," she added.
Her remarks came after her return from Washington, where she said discussions on US tariffs on Taiwanese exports had "made some progress."
The pushback comes as Taipei struggles to secure a tariff deal after the Trump administration imposed a temporary temporary 20% levy on Taiwanese exports, sparking concern among manufacturers, AFP reported.
Taiwan’s exports to the US are dominated by information and communications technology, more than 70% of them involve chips, a sector now in high demand due to AI-related growth. This has widened Taipei’s trade surplus with Washington, drawing Trump’s scrutiny.
To ease tensions, Taiwan has pledged to boost US investments, increase energy purchases, and raise its defence spending above 3% of GDP, even as it resists pressure on chip production.
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