Taiwan Resists US Pressure to Relocate 40% of Chip Production
Taiwan's Vice Premier Cheng Li-chiun has publicly rejected a US proposal to shift 40% of the island's semiconductor production abroad. In a televised interview, Cheng dismissed the plan as unrealistic, citing Taiwan's entrenched chip-making infrastructure and extensive supplier networks. "Our overall capacity in Taiwan will only continue to grow," she declared, while leaving room for overseas expansion.
The stance puts Taiwan at odds with US Commerce Secretary Howard Lutnick, who argues advanced chip production shouldn't occur so close to China. The Biden administration wants 40% of sophisticated semiconductor manufacturing on American soil by 2029—a target Cheng likened to moving an iceberg, where visible factories represent just a fraction of the necessary ecosystem.
