Taiwan says ‘impossible’ to move 40% chip capacity to US
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Taiwan's Vice-Premier Cheng Li-chiun speaks at a press conference about a US-Taiwan trade deal in Taipei on Jan 20.
PHOTO: REUTERS
TAIPEI – Taiwan’s top tariffs negotiator said it would be “impossible” to shift 40 per cent of its semiconductor production capacity to the United States as she rejected claims that the island’s chip industry would relocate.
Taiwan is a powerhouse in producing chips – a critical component in the global economy – but the White House wants more of the technology made in America.
Washington agreed in a deal in January to lower tariffs on the island’s goods
US Commerce Secretary Howard Lutnick said in January that Washington wanted to shift up to 40 per cent of Taiwan’s chip supply chain and production to the US, warning tariffs could rise sharply if that did not happen.
That came after he told US media in September 2025 that Taiwan’s chip production should be split “50-50“ with Washington.
But in an interview broadcast late on Feb 8 by Taiwanese television channel CTS, Vice-Premier and lead negotiator Cheng Li-chiun said she had made it clear to US officials that Taiwan’s semiconductor ecosystem would not be relocated.
With regard to “40 or 50 per cent of production capacity (being) moved to the United States... I have made it very clear to the US side that this is impossible,” Ms Cheng said.
She added that Taiwan’s semiconductor ecosystem was like an “iceberg”, the foundation beneath the water is “enormous”, adding that “an industrial ecosystem built up over decades cannot be relocated”.
She said “it will only continue to grow larger”. AFP
