Tuesday, 02 January 2024 12:17 GMT

Taiwan refutes claims of agreeing to making 50% of its semiconductors in US


(MENAFN) Taiwan on Wednesday dismissed claims that it had committed to manufacturing 50% of its semiconductors in the United States, according to reports.

After returning from Washington, Vice Premier Cheng Li-jung clarified that their negotiating team had never agreed to such a 50-50 arrangement, noting that the matter was not discussed during the recent talks and would not be accepted.

"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," she said.

Cheng’s comments came in response to statements by U.S. Secretary of Commerce Howard Lutnick, who said he had suggested a 50-50 split in semiconductor production with Taiwan.

She added that once both sides reach full agreement on reciprocal tariffs and supply chain collaboration, a summary meeting will be held to finalize a trade deal. Currently, Taiwan’s exports to the U.S. face a 20% tariff.

Taiwan produces over half of the world’s semiconductors, with the majority of its exports to the U.S. consisting of information and communications technology products, including chips.

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