TAIPEI, Feb 9 (Reuters) – It could be “not possible” to maneuver 40% of Taiwan’s semiconductor capability to the U.S., the island’s high tariff negotiator stated, pushing again in opposition to latest feedback by American officers who known as for a significant manufacturing shift.
In an interview with Taiwanese tv channel CTS that was broadcast late on Sunday, Taiwan Vice Premier Cheng Li-chiun stated she had made it clear to Washington that Taiwan’s semiconductor ecosystem, constructed up over a long time, couldn’t be relocated.
“I’ve made it very clear to america that that is not possible,” she stated, referring to the 40% aim the U.S. has floated.
On this picture launched by the Taiwan Presidential Workplace, Taiwan’s President Lai Ching-te speaks throughout a press convention on “Taiwan-U.S. Financial Prosperity Partnership” in Taipei, Taiwan on Feb. 3, 2026. (Taiwan Presidential Workplace through AP) · ASSOCIATED PRESS
That ecosystem will proceed to develop in Taiwan, Cheng stated, including that the semiconductor trade would hold investing at dwelling.
“Our total capability (in Taiwan) will solely proceed to develop,” she stated. “However we will broaden our presence in america.”
“Our worldwide growth, together with elevated funding in america, relies on the premise that we stay firmly rooted in Taiwan and proceed to broaden funding at dwelling.”
On Tuesday, U.S. Commerce Secretary Howard Lutnick stated the federal government wanted to convey semiconductors to the U.S.
“You’ll be able to’t have all semiconductor manufacturing 80 miles from China,” he stated. “That is simply illogical … So we have to convey it again.”
“After we depart workplace my aim, for this administration, is 40% market share in modern semiconductor manufacturing.”
Taiwan and the U.S. reached a deal final month to decrease tariffs on the island’s exports to fifteen% from 20% and for Taiwan to extend its funding within the nation.
Cheng stated that there can be no relocation of Taiwan’s science parks, however Taiwan was prepared to share its expertise in constructing an trade cluster and assist the U.S. develop the same surroundings.
She additionally stated she was assured that Taiwan’s semiconductor capability – together with present, beneath development and deliberate tasks throughout superior manufacturing, superior packaging and the broader provide chain – would far exceed its funding within the U.S. or every other nation.
In an interview on CNBC final month, Lutnick stated his aim was to convey 40% of Taiwan’s total chip provide chain and manufacturing to the U.S. He stated that if this doesn’t occur, tariffs on Taiwan would doubtless rise to 100%.
In September, Lutnick advised U.S. tv community NewsNation that Washington’s pitch to Taiwan can be a 50-50 break up in making chips, the overwhelming majority of which are actually made on the island.