Taiwan Firmly Rejects U.S. Push for Major Semiconductor Relocation

Taiwan's top tariff negotiator has firmly stated that relocating 40% of the island's semiconductor capacity to the United States would be "impossible." This declaration by Taiwan Vice Premier Cheng Li-chiun directly counters recent comments from American officials advocating for a significant production shift.

Taiwan's semiconductor ecosystem, cultivated over decades, cannot be relocated and will continue its growth within Taiwan.

Cheng communicated to Washington that while international expansion, including increased investment in the U.S., is important, it is predicated on Taiwan maintaining its core operations and investment at home.

U.S. Calls for Shift, Citing "Illogical" Concentration

U.S. Commerce Secretary Howard Lutnick had previously stated the need to bring semiconductor manufacturing to the U.S. He cited the current concentration 80 miles from China as "illogical," highlighting national security concerns.

Lutnick's stated goal for his administration is to achieve 40% market share in leading-edge semiconductor manufacturing for the U.S. He also indicated that if a significant portion of Taiwan's chip supply chain and production does not move to the U.S., tariffs on Taiwan could increase to 100%.

Taiwan's Domestic Growth Strategy Unchanged

Despite the U.S. pressure, Taiwan and the U.S. recently finalized an agreement to reduce tariffs on Taiwanese exports and increase Taiwan's investment in the U.S.

Vice Premier Cheng affirmed that Taiwan's science parks would not be relocated. However, Taiwan is willing to share its expertise in developing industry clusters to aid the U.S. in establishing a similar environment.

Cheng expressed confidence that Taiwan's total semiconductor capacity—encompassing existing, under-construction, and planned projects across advanced manufacturing, advanced packaging, and the broader supply chain—will significantly surpass its investments in the U.S. or any other country.