Taiwan won't help the US make half its own processors

"The US has been pressing Taiwan to reduce American dependence on chips manufactured on the island - which accounts for over 60 percent of global semiconductor production and roughly 90 percent of the world's most advanced chips - as part of ongoing trade talks. "Our goal is to get to 40 percent market share, and maybe 50 percent market share of producing the chips and the wafers, you know, the semiconductors we need for American consumption. That's our objective and I think it will shock everybody how successful we are," US Commerce Secretary Howard Lutnick said in an interview earlier this week with News Nation."

"But Taiwan's Vice Premier Cheng Li-chiun, contradicted that vision upon returning from Washington negotiations. Taiwan has "never made any commitment to a 50-50 split on manufacturing chips, and would not agree to such terms," she said, according to The Taipei Times. Washington already imposed a 20 percent tariff on all goods imported from Taiwan, which came into effect in August, and the Trump administration is probably banking on the Taipei government wanting to see that reduced."

"The President continues to float the possibility of 100 percent tariffs on imported semiconductors, as part of his push to bring chip production to American soil. The latest proposal would reportedly require tech companies to manufacture one chip domestically for every chip imported - or face the punitive 100 percent tariff. Washington's urgency stems from Taiwan's geographic position, about 80 miles away from mainland China, and the fact that much of America's critical chip supply originates there."

The United States seeks to increase domestic semiconductor production to roughly 40–50 percent of chips and wafers consumed in America. Taiwan declined to agree to a 50-50 manufacturing split and stated no commitment to such terms. Washington has imposed a 20 percent tariff on Taiwanese goods and is considering punitive measures, including a proposed one-for-one domestic manufacturing rule or 100 percent tariffs on imported semiconductors. Taiwan supplies over 60 percent of global semiconductors and about 90 percent of the most advanced chips. Geopolitical concerns about proximity to mainland China amplify US urgency to diversify chip production.

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