Taiwan Declines U.S. Proposal for Equal Semiconductor Production Split

Taiwan has declined a U.S. proposal to equally divide semiconductor production between the two nations. Vice Premier Cheng Li-chiun, returning from trade negotiations in Washington, stated that the idea of a "50-50 split" was not discussed during the talks.

U.S. Commerce Secretary Howard Lutnick had suggested that Taiwan and the U.S. each manufacture half of the semiconductors required by the American economy.

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading contract chipmaker, has invested significantly in U.S. facilities, including a $12 billion plant in Arizona. However, the majority of its production remains in Taiwan.

The proposal has faced criticism within Taiwan. Eric Chu, chairman of the opposition Kuomintang party, described it as "an act of exploitation and plunder," emphasizing the importance of protecting Taiwan's semiconductor industry.

The semiconductor sector is vital to Taiwan's economy, and the island's dominance in chip manufacturing is considered a strategic asset. The rejection of the U.S. proposal underscores Taiwan's commitment to maintaining control over its critical industries.