Taiwan rejects 50-50 split of chip production for US

Taiwan’s vice premier said on Wednesday the island will not accept a U.S. proposal to shift half of the semiconductor production destined for American customers to the United States, rejecting a suggestion raised publicly by the U.S. commerce secretary as Taipei and Washington pursue talks aimed at lowering a 20 percent U.S. tariff on Taiwanese exports. The comments followed a visit by Taiwanese trade negotiators to Washington late last week to discuss tariffs, investment and protections for the island’s semiconductor sector.

Vice Premier Cheng Lichun, who leads Taiwan’s tariff negotiations, told reporters upon her return that the negotiating team had not discussed a 50-50 split on chip production and would not agree to such a condition. "Our negotiating team has never made any commitment to a 50-50 split on chips. Rest assured, we did not discuss this issue during this round of talks, nor would we agree to such conditions," she said. The proposal was made public earlier this month by U.S. Commerce Secretary Howard Lutnick, who framed it as a way to reduce U.S. reliance on overseas supply chains.

Negotiators in Washington focused on several issues, according to a person familiar...