Taiwan has rejected a U.S. proposal that it shift half of its semiconductor manufacturing to America, with officers and media on the island warning the plan would injury its financial system and price jobs. The concept was revealed by U.S. Commerce Secretary Howard Lutnick, who stated the Trump administration needs a “50–50 cut up” to chop America’s reliance on Taiwanese chips.
Lutnick argued that with 95% of U.S. chips presently made in Taiwan — “9,000 miles away” — the dangers had been rising given Beijing’s threats towards the island. However Taiwan’s Democratic Progressive Celebration (DPP) authorities and native media instantly pushed again, calling the plan exploitative and warning it might hole out an important trade.
The U.S. has already attracted some Taiwanese funding via its CHIPS Act, with TSMC constructing crops in Arizona. Nonetheless, Taipei sees management of its chip sector as each an financial cornerstone and a geopolitical safeguard, making it unlikely to yield floor simply. The conflict highlights rising friction between Washington’s push to “onshore” provide chains and Taiwan’s need to retain its dominance in superior semiconductor manufacturing.