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Taiwan Rejects US Demand for 50-50 Chip Split as Washington Weighs New Tariffs

The U.S. aims to cut Taiwan’s semiconductor share from 90% to 50% by boosting domestic chip production to 40%, requiring over $500 billion in U.S. investments.

  • Opposition Kuomintang lawmakers condemned U.S. Secretary of Commerce Howard Lutnick's proposal to split semiconductor production equally between Taiwan and the U.S., fearing it could weaken Taiwan's security and economy.
  • Lutnick stated that shifting a portion of chip production to the U.S. is vital for both nations' security and indicated that 50% of the chips used in the U.S. must be made domestically.
  • Legislator Hsu Yu-chen criticized the proposal as exploitation and a threat to Taiwan's semiconductor industry and security, known as the 'silicon shield.'
  • Taiwan's government, through the Office of Trade Negotiations, has stated it would act with prudence in negotiations regarding semiconductor production.
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Taiwanese Deputy Prime Minister returned to Taipei after participating in the fifth round of negotiations with the US.

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Taiwan will not agree to a split of chip production, with 50 percent domestic and 50 percent in the U.S. It also rejects the possibility of this being a framework for trade negotiations with the world's largest economy.

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Tom's Hardware broke the news in on Sunday, September 28, 2025.
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