Taiwan has explicitly rejected the US's demand to move a significant portion of semiconductor production to the country. Officials state that such a move is neither technically nor economically feasible.
The Taiwanese government has given a clear response to expectations that 40% of semiconductor production would be shifted to the US. Taiwan's Deputy Premier Cheng Li-chiun stated that they have explicitly informed Washington that a production transfer of this magnitude is "impossible."
Taiwan's Response to the US
For those unaware, Taiwan currently accounts for approximately 90% of global advanced semiconductor production. Moving a large portion of this production infrastructure, built over decades, to another country is seen as a risk that would affect not only the supply chain but also the entire national economy. Officials have stated that there is no logical justification for such a scenario.
Cheng Li-chiun emphasized that Taiwan's most advanced production technologies will not be moved abroad and must remain in the country due to their research and development processes. Li-chiun noted that the door to international investments is not entirely closed, stating that any expansion is planned in a way that will not weaken Taiwan's production and R&D activities.
On the US side, concerns about the geographical concentration of semiconductor production persist. US Secretary of Commerce Howard Lutnick views the concentration of a large portion of advanced chip production in a region close to China as a strategic risk. Washington's long-term goal is to achieve a 40% share in advanced semiconductor production.
Despite this, cooperation between the two countries has not completely ceased. Last month, the US lowered tariffs on exports from Taiwan, while Taiwan pledged to increase its investments in the US. TSMC's factory projects in Arizona, totaling $165 billion, are among the most concrete examples of this cooperation.
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