Taiwan rejects demand to shift semiconductor production to US
What's the story
Taiwan has rejected the US's demand to move a major portion of its semiconductor production capacity to America. Cheng Li-chiun, Taiwan's Vice Premier, called the proposal "impossible" in an interview with Taiwanese TV channel CTS. The statement comes as a direct response to recent comments from American officials advocating for such a major production shift.
Ecosystem stability
'This is impossible,' Cheng said
Cheng emphasized that Taiwan's semiconductor ecosystem, which has been developed over decades, cannot be moved. She said, "I have made it very clear to the United States that this is impossible," referring to the 40% target proposed by the US. Despite rejecting these demands, Cheng assured that Taiwan's semiconductor industry will continue to grow and invest domestically.
Expansion strategy
International expansion won't come at the cost of domestic growth
Cheng clarified that while Taiwan's semiconductor industry is looking to expand internationally, including in the US, it won't come at the cost of domestic growth. She said, "Our international expansion, including increased investment in the United States, is based on the premise that we remain firmly rooted in Taiwan and continue to expand investment at home."
Domestic production
US Commerce Secretary pushes for more domestic chip production
US Commerce Secretary Howard Lutnick has stressed the need to bring semiconductor production back to America. He said, "You can't have all semiconductor manufacturing 129km from China." Lutnick also revealed his goal for the current administration is to achieve a 40% market share in leading-edge semiconductor manufacturing.
Knowledge sharing
Cheng offers to share Taiwan's experience in building industry clusters
Cheng also said that Taiwan is not moving its science parks but is willing to share its experience of building an industry cluster with the US. She expressed confidence that Taiwan's semiconductor capacity would far exceed its investment in the US or any other country. This comes after Lutnick had said his goal was to bring 40% of Taiwan's entire chip supply chain and production to America.