Taiwan says no to making 50% of its chips in U.S.

[CPU computer processor unit with flag of Taiwan, 3D rendering]
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Taiwan—home to the biggest contract chipmaker, TSMC (NYSE:TSM [https://seekingalpha.com/symbol/TSM])—said that it will not agree to produce 50% of its semiconductors in the U.S.

"I want to clarify that this is the US's idea. Our negotiation team has never made a 50-50 commitment to a chip split," the island's top trade negotiator, Vice Premier Cheng Li-chiun told reporters in Taipei.

"Please be rest assured that we did not discuss this issue this time, and we will not agree to such a condition," she added.

She said that talks over U.S. tariffs on Taiwanese goods "made some progress" after she returned from Washington, as Taiwan is trying to finalize a tariff deal with the U.S. Trump imposed a 20% levy that has alarmed the island's manufacturers.

Looking back, the U.S. officials led by Trump had advocated for a restructuring of global chip supply chains, calling on Taiwan and industry leader TSMC (NYSE:TSM [https://seekingalpha.com/symbol/TSM]) to relocate a substantial portion of production to the U.S. The reason was to ensure supply chain security amid geopolitical tensions, particularly related to China’s intentions with Taiwan.

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