Archive · 1 Oct 2025
Taiwan Rejects US Demand for Semiconductor Production Split
The United States wants Taiwan to make half of its computer chips in the US, but Taiwan said no.
Taiwan makes most of the world's best chips.
The US is worried about getting chips from other countries and wants to make more at home.
Taiwan is trying to avoid new taxes on its exports to the US.
Both sides are talking about these issues, but Taiwan will not agree to the production split.
The US wants to control more of its chip supply.
Taiwan rejected a US proposal to split semiconductor production 50/50.
The US wants increased chip manufacturing on American soil.
Vice Premier Cheng Li-chiun confirmed Taiwan's rejection of the proposal.
Negotiations are ongoing regarding potential US tariffs on Taiwanese exports.
The US aims to increase its domestic semiconductor market share.
- Who
- Taiwan and the United States
- What
- Disagreement over semiconductor production, specifically the US proposal for a 50/50 split.
- When
- Recently, during ongoing trade and tariff negotiations.
- Where
- Taipei and Washington.
- Why
- The US seeks to increase domestic semiconductor production and ensure supply chain security.
Taiwan's Perspective
United States' Perspective
Production Split
Taiwan's Perspective
Will not agree to the 50/50 production split proposed by the US.
United States' Perspective
Seeks a significant portion of semiconductor production to be done in the US.
Trade & Tariffs
Taiwan's Perspective
Focuses on protecting Taiwan's economic interests and minimizing tariffs.
United States' Perspective
Wants to increase domestic chip production and secure supply chains.
- Main Issue
- Taiwan's refusal to move 50% of its semiconductor production to the US.
- US Proposal
- To split semiconductor production 50/50 between Taiwan and the US.
- Taiwan's Stance
- Rejected the US proposal and stated they will not agree to such a condition.
- Key Figure
- Vice Premier Cheng Li-chiun
- Tariffs
- Taiwan's exports face potential tariffs.
- US Goal
- To produce 40-50% of semiconductors needed for American consumption.
