Taiwan Rejects US Semiconductor Relocation Demand

Taiwan has firmly rejected calls from the United States to relocate 40% of its semiconductor manufacturing capacity, with Vice Premier Cheng Li-chiun stating such a move is 'impossible.' U.S. Commerce Secretary Howard Lutnick has been advocating for this shift due to strategic concerns about Taiwan's proximity to China, even warning of potential tariff increases if the goal is not met. Cheng Li-chiun emphasized that Taiwan's semiconductor ecosystem, built over decades, cannot be uprooted and will continue to grow domestically. While Taiwan is open to increasing investment in the United States, exemplified by TSMC's $165 billion investment in United States===Arizona, it insists on remaining the core of its semiconductor industry. A recent agreement saw the U.S. lower tariffs on Taiwanese exports from 20% to 15%, alongside commitments for increased Taiwanese investment in the U.S. This event highlights ongoing tensions and negotiations regarding global semiconductor supply chain resilience and geopolitical strategy.