Taiwan rejected the possibility of relocating 40% of chip production to the US

Transferring 40% of Taiwan's semiconductor manufacturing capacity to the United States would be "impossible," the island's chief customs negotiator said, refuting recent statements by American officials who called for a significant relocation of production, UNN reports with reference to Reuters.

Details

In an interview with Taiwan's CTS television channel, aired late Sunday, Taiwan's Vice Premier Chen Li-chun said she had made it clear to Washington that Taiwan's semiconductor ecosystem, which has been built over decades, cannot be relocated.

"I made it very clear to the United States that this is impossible," she said, referring to the 40% target voiced by the US.

This ecosystem will continue to grow in Taiwan, Chen said, adding that the semiconductor industry will continue to invest domestically.

"Our overall capacity (in Taiwan) will only continue to grow," she said. "But we can expand our presence in the United States."

"Our international expansion, including increased investment in the United States, is based on the premise that we remain firmly rooted in Taiwan and continue to increase investment domestically," she noted.

Chen stated that there would be no relocation of Taiwan's science parks, but Taiwan is ready to share its experience in creating an industry cluster and help the US create a similar environment.

She also stated that she was confident that Taiwan's semiconductor manufacturing capabilities - including existing, under construction, and planned projects in advanced manufacturing, advanced packaging, and the broader supply chain - would significantly outperform investments in the US or any other country.

Addition

In an interview with CNBC last month, US Commerce Secretary Howard Lutnick said his goal was to move 40% of Taiwan's entire chip supply chain and manufacturing to the US. He said that if this does not happen, tariffs on Taiwanese chips are likely to rise to 100%.

In September, Lutnick told the American TV channel NewsNation that Washington would propose to Taiwan to divide chip production equally (50/50), amid the fact that the vast majority of chips are currently manufactured on the island. Taiwan then rejected this idea.

On Tuesday, Lutnick said the government needed to move semiconductor manufacturing to the US.

"You can't put all semiconductor manufacturing 80 miles from China," he said. "It just doesn't make sense... So we need to bring it back."

"When we leave office, my goal for this administration will be a 40% market share of advanced semiconductor manufacturing," Lutnick said.

Last month, Taiwan and the US reached an agreement to reduce tariffs on the island's exports from 20% to 15% and increase Taiwan's investment in the country.

TSMC, the world's largest contract chip manufacturer, is investing $165 billion to build factories in the US state of Arizona.