Taiwan says "no" to US chip production pressure

Taiwanese authorities have firmly rejected a U.S. proposal to relocate part of the semiconductor production to American territory. Taiwan's key argument, as reported by Reuters, is that the tightly integrated semiconductor ecosystem, built over decades, cannot be moved. In an interview with Taiwanese station CTS, Vice Premier Cheng Li-chiun stated that moving 40% of Taiwan's semiconductor production capacity to the U.S., a goal recently raised by high-ranking American officials, is "impossible." Cheng conveyed Taiwan's position directly to Washington, saying, "I made it clear to the United States that this is impossible." She added that Taiwan's semiconductor industry will continue to develop domestically, but the island can also expand its presence in the U.S., based on the premise of remaining strongly rooted in Taiwan. She is convinced that Taiwan's production capacity will far exceed investments in the U.S. or any other country. These comments come as Washington continues to push for increased domestic semiconductor production, citing supply chain resilience and geopolitical risks. U.S. Commerce Secretary Howard Lutnick stated that production cannot remain heavily concentrated near China, with an administration goal of having 40% of cutting-edge semiconductor production in the U.S. by the end of the term. Analysts note the global supply chain remains highly concentrated, with Taiwan playing a key role, and that a full reshoring is virtually impossible without huge investments and years of coordination, as a single chip requires direct input from an average of 25 countries