Taipei, Taiwan. Taiwan Vice Premier Cheng Li-chiun said it would be “impossible” to move 40% of Taiwan’s semiconductor capacity to the United States, rejecting recent comments by US officials calling for a major shift in production.
Taiwan response to US manufacturing goals
In an interview with Taiwanese television channel CTS broadcast late on Sunday, Cheng said she had made clear to Washington that Taiwan’s semiconductor ecosystem, built up over decades, could not be relocated.
“I have made it very clear to the United States that this is impossible,” Cheng said, referring to the 40% goal the US has floated.
Cheng said Taiwan’s semiconductor ecosystem would continue to grow on the island and that the industry would keep investing at home. “Our overall capacity (in Taiwan) will only continue to grow,” she said, adding, “But we can expand our presence in the United States.”
She said international expansion, including increased investment in the United States, would be based on the premise that Taiwan remains “firmly rooted in Taiwan” and continues to expand investment at home.
US remarks on reshoring semiconductor production
On Tuesday, US Commerce Secretary Howard Lutnick said the government needed to bring semiconductor manufacturing to the United States.
“You can’t have all semiconductor manufacturing 80 miles from China,” Lutnick said. “That’s just illogical … So we need to bring it back.”
“When we leave office my goal, for this administration, is 40 per cent market share in leading-edge semiconductor manufacturing,” he said.
Tariff agreement and investment plans
Taiwan and the United States reached a deal last month to lower tariffs on Taiwan’s exports to 15% from 20% and for Taiwan to increase its investment in the United States.
How do you think Taiwan and the United States can balance semiconductor investment while maintaining Taiwan’s domestic capacity?
