The country’s top tariffs negotiator said it would be “impossible” to shift 40% of its semiconductor production capacity to the United States as she rejected claims that the island’s chip industry would relocate.
Taiwan is a powerhouse in producing chips, but the White House wants more of the technology made in America.
Washington agreed in a deal last month to lower tariffs on the island’s goods to 15% from 20%, while Taiwan will increase its investment in the United States.
US Commerce Secretary official Howard Lutnick said last month that Washington wanted to shift up to 40% of Taiwan’s chip supply chain and production to the United States, threatening a sharp rise in tariffs if that did not happen.
However, Vice Premier and lead negotiator Cheng Li-chiun said in an interview that she had made it clear to US officials that Taiwan’s semiconductor ecosystem would not be relocated.
She added that Taiwan’s semiconductor ecosystem was like an “iceberg”, the foundation beneath the water is “enormous”, adding that “an industrial ecosystem built up over decades cannot be relocated”. — AFP
