Taiwan Rejects U.S. Bid to Relocate 40% of Chip Production

Taiwan's government has firmly rejected U.S. calls to relocate 40 percent of the island's semiconductor production capacity to the United States, describing the proposal as impossible due to the deeply entrenched nature of its manufacturing ecosystem. Vice Premier Cheng Lichiun made the remarks in an interview with Taiwanese television station CTS, broadcast late on Sunday, emphasizing that the sector's growth will remain centered at home.

Cheng, who serves as Taiwan's top tariff negotiator, told CTS that she had directly informed Washington of the infeasibility of such a shift. "I have made it very clear to the United States that this is impossible," she said, referring to the 40 percent target floated by U.S. officials. She added that Taiwan's semiconductor ecosystem, developed over decades, cannot be simply transferred elsewhere. Instead, companies like Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. (UMC) plan to continue expanding production on the island. "Our overall capacity in Taiwan will only continue to grow," Cheng stated.

While ruling out major relocations, Cheng noted that Taiwan supports overseas investments, including those by...