In an interview with Taiwanese television channel CTS broadcast late Sunday, Vice Premier Cheng Li-chiun said she had clearly conveyed Taiwan’s position to Washington, stressing that the island’s semiconductor ecosystem—developed over decades—cannot be uprooted and transferred elsewhere, News.Az reports, citing Reuters.
“I have made it very clear to the United States that this is impossible,” Cheng said, referring to the 40% production target floated by U.S. officials.
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Cheng emphasized that Taiwan’s semiconductor ecosystem would continue to expand domestically, adding that the industry would keep investing on the island.
“Our overall capacity (in Taiwan) will only continue to grow,” she said. “But we can expand our presence in the United States.”
She noted that Taiwan’s international expansion, including increased investment in the U.S., is conditional on maintaining a strong manufacturing base at home. “Our international expansion, including increased investment in the United States, is based on the premise that we remain firmly rooted in Taiwan and continue to expand investment at home,” Cheng said.
On Tuesday, U.S. Commerce Secretary Howard Lutnick said Washington needs to bring semiconductor manufacturing back to the United States, citing security and supply-chain concerns.
“You can’t have all semiconductor manufacturing 80 miles from China,” Lutnick said. “That’s just illogical ... So we need to bring it back.” He added that the administration’s goal is for the U.S. to hold a 40% market share in leading-edge semiconductor manufacturing by the time it leaves office.
Taiwan and the United States reached an agreement last month to reduce tariffs on Taiwan’s exports to 15% from 20%, alongside a commitment by Taiwan to increase investment in the U.S.
Cheng said Taiwan would not relocate its science parks, but was willing to share its experience in developing an industry cluster and assist the U.S. in building a similar environment.
She also expressed confidence that Taiwan’s total semiconductor capacity—including existing facilities as well as projects under construction and planned across advanced manufacturing, advanced packaging and the broader supply chain—would far exceed its investments in the U.S. or any other country.
In a CNBC interview last month, Lutnick said his aim was to bring 40% of Taiwan’s entire semiconductor supply chain and production to the U.S., warning that if this does not happen, tariffs on Taiwan could rise to 100%.
In September, Lutnick told U.S. television network NewsNation that Washington had proposed a 50-50 split in chip production, most of which is currently based in Taiwan. Taiwan rejected the proposal at the time.
TSMC, the world’s largest contract chipmaker, is currently investing $165 billion to build semiconductor factories in the U.S. state of Arizona.
