Taiwan Pushes Back On U.S. Chip Split Proposal

This article first appeared on GuruFocus.

Taiwan is making it clear it won't be shifting half of its chip production to the U.S., pushing back on an idea floated in Washington.

This is the U.S.'s idea. Our negotiation team has never made a 50-50 commitment to a chip split, Vice Premier Cheng Li-chiun told reporters in Taipei. She added that the issue wasn't even on the table during her latest round of talks and stressed, we will not agree to such a condition.

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What Taiwan did discuss was trade. Cheng said there has been some progress on resolving U.S. tariffs, including a 20% levy imposed under former President Trump that has rattled the island's manufacturers.

U.S. officials have been pushing Taiwan and its chip champion TSMC (NYSE:TSM) to relocate more production stateside as supply chain worries and tensions with China linger. But Taipei's latest comments make clear: Taiwan wants to keep its chipmaking dominance firmly at home.

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