Taiwan Rejects US Proposal for 50-50 Semiconductor Production Split

Taiwan has firmly rejected the U.S. proposal to split semiconductor production evenly between the two countries, with Vice Premier Cheng Li-chiun clarifying that no such commitment was made or discussed during recent trade talks. The U.S., represented by Secretary of Commerce Howard Lutnick, suggested a 50-50 production split to reduce reliance on overseas supply chains, but Taiwan remains focused on securing tariff concessions under Section 232 instead. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, is investing heavily in U.S. manufacturing facilities but will keep most production in Taiwan, especially advanced technologies. The island’s officials emphasize that maintaining control over semiconductor production is critical amid escalating geopolitical tensions and strategic importance of chips globally. Despite ongoing tariff discussions yielding "certain progress," Taiwan maintains that the 50-50 split proposal is unacceptable and not part of the negotiations. This development represents a significant setback for the Trump administration’s efforts to onshore chip production and highlights the complex economic and strategic dynamics between the U.S. and Taiwan.