Taiwan Rejects U.S. 50 Percent Chip Production Split Demand

2025-10-01 03:59:07

(MENAFN) Taiwan firmly dismissed reports on Wednesday claiming it agreed to produce half of its semiconductors in the United States, according to media.

Returning from Washington, Vice Premier Cheng Li-jung clarified that their negotiation team never committed to a 50-50 chip production split. She emphasized, "I think this is the US's idea. Our negotiation team has never made a 50-50 chip split commitment. Please rest assured that we did not discuss this issue this time, and we will not agree to such conditions. Please rest assured."

Her statement came shortly after US Secretary of Commerce Howard Lutnick said he had proposed such a 50-50 division to Taiwan.

Cheng further explained that a trade agreement would proceed only once both sides reach full consensus on reciprocal tariffs and supply chain collaboration, leading to a summary meeting.

Currently, Taiwan’s exports to the US face a 20% tariff. Taiwan is responsible for producing over half of the global semiconductor supply, with the majority of its shipments to the US comprising information and communications technology products, including chips.

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