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Taiwan rejects Trump’s demand to shift 50% of chip manufacturing into US

Taiwan has no plans to move half its chip production into the US, Vice Premier Cheng Li-chiun confirmed, quickly pushing back on seemingly false claims that the US had raised the condition during recent trade talks.

US Commerce Secretary Howard Lutnick had suggested that Taiwan was currently mulling moving half its semiconductor supply chain to the US in exchange for “some kind of security guarantee,” as Taiwan faces the ongoing threat of a potential Chinese invasion. Trump has maintained since taking office that reshoring of semiconductor supply chains is critical for economic and national security, and Lutnick indicated that Taiwan should agree to the unusual terms because it needs the US for protection.

But speaking Wednesday, Cheng said that while “certain progress” has been made in trade talks, Taiwan has not only made “no such commitment” but that “this issue was not discussed in this round of negotiation, and we will not agree to such a condition,” Bloomberg reported.

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