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Reading: Taiwan rejects U.S. proposal of ’50-50′ chip manufacturing
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Stock Market

Taiwan rejects U.S. proposal of ’50-50′ chip manufacturing

Editor
Last updated: October 2, 2025 4:44 am
Editor
Published: October 2, 2025
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Taiwan rejects U.S. proposal of ’50-50′ chip manufacturing


Taiwan Semiconductor Manufacturing Firm, Restricted at Hsinchu Science Park.

Annabelle Chih | Getty Pictures Information | Getty Pictures

Taiwan is not going to settle for Washington’s proposal to domestically manufacture half the chips it presently provides to the U.S., the island’s high commerce negotiator stated.

Chatting with reporters, Cheng Li-chiun, additionally the nation’s vice premier, stated on Wednesday that the proposal for a “50-50” break up in semiconductor manufacturing was not even mentioned, as she returned from commerce talks within the U.S., in response to Taiwan’s Central Information Company.

Cheng stated the talks had been targeted on decreasing tariff charges, securing exemptions from tariff stacking — further duties — and lowering levies on Taiwanese exports. Taiwan presently faces a “reciprocal” tariff price of 20%.

Washington has held discussions with Taipei in regards to the “50-50” break up in semiconductor manufacturing, which might reduce American reliance on Taiwan, Commerce Secretary Howard Lutnick stated final weekend in an interview to NewsNation, including that presently 95% of the U.S. demand was met through chips produced inside Taiwan.  

“My goal, and this administration’s goal, is to get chip manufacturing considerably onshored — we have to make our personal chips,” Lutnick stated. “The concept I pitched [Taiwan] was, let’s get to 50-50. We’re producing half, and also you’re producing half.” 

U.S. President Donald Trump had additionally taken purpose on the island’s dominance in chips earlier this 12 months, accusing it of “stealing” the U.S.’ chip enterprise.

The Workplace of the U.S. Commerce Consultant and Taiwan’s Ministry of Financial Affairs didn’t instantly reply to CNBC’s request for feedback.

Lutnick’s proposal has been condemned by Taiwan’s politicians, with Eric Chu, chairman of the island’s principal opposition celebration Kuomintang, calling it “an act of exploitation and plunder,” in response to the Central Information Company report.

“Nobody can promote out Taiwan or TSMC, and nobody can undermine Taiwan’s silicon defend,” Chu stated, referring to Taiwan Semiconductor Manufacturing Firm, the world’s chief in superior chip manufacturing.

Taiwan’s vital place in international chips manufacturing is believed to have assured the island nation’s protection in opposition to direct army motion from China, also known as the “Silicon Protect” concept.

In his NewsNation interview, Lutnick downplayed the “Silicon Protect,” arguing that Taiwan can be safer with extra balanced chip manufacturing between Washington and Taipei. Beijing views the democratically ruled island of Taiwan as its personal territory and has vowed to reclaim it by drive if crucial, whereas Taipei rejects these claims. 

Taiwan Folks’s Celebration Chairman Huang Kuo-chang reportedly referred to as Lutnick’s proposal an try to “hole out the foundations of Taiwan’s know-how sector.”

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Reading: Taiwan rejects U.S. proposal of ’50-50′ chip manufacturing
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