TAIPEI, Feb 9 (Reuters) – It would be “impossible” to move 40% of Taiwan’s semiconductor capacity to the U.S., the island’s top tariff negotiator said, pushing back against recent comments by American officials who called for a major production shift.
In an interview with Taiwanese television channel CTS that was broadcast late on Sunday, Taiwan Vice Premier Cheng Li-chiun said she had made it clear to Washington that Taiwan’s semiconductor ecosystem, built up over decades, could not be relocated.
“I have made it very clear to the United States that this is impossible,” she said, referring to the 40% goal the U.S. has floated.
That ecosystem will continue to grow in Taiwan, Cheng said, adding that the semiconductor industry would keep investing at home.
“Our overall capacity (in Taiwan) will only continue to grow,” she said. “But we can expand our presence in the United States.”
“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.”
On Tuesday, U.S. Commerce Secretary Howard Lutnick said the government needed to bring semiconductors to the U.S.
“You can’t have all semiconductor manufacturing 80 miles from China,” he said. “That’s just illogical … So we need to bring it back.”
“When we leave office my goal, for this administration, is 40% market share in leading-edge semiconductor manufacturing.”
Taiwan and the U.S. reached a deal last month to lower tariffs on the island’s exports to 15% from 20% and for Taiwan to increase its investment in the country.
Cheng said that there would be no relocation of Taiwan’s science parks, but Taiwan was willing to share its experience in building an industry cluster and help the U.S. develop a similar environment.
She also said she was confident that Taiwan’s semiconductor capacity – including existing, under construction and planned projects across advanced manufacturing, advanced packaging and the broader supply chain – would far exceed its investment in the U.S. or any other country.
In an interview on CNBC last month, Lutnick said his goal was to bring 40% of Taiwan’s entire chip supply chain and production to the U.S. He said that if this does not happen, tariffs on Taiwan would likely rise to 100%.
kl122002 on
so, what would Trump do?
StrangerFew2424 on
Everyone knows this except Trump’s gullible followers…
grahamsuth on
They’re not idiots. If too much chip manufacturing goes to the the US, the US will have no self interest in defending Taiwan. The greed and lack of care for others of US business is now US international policy.
HeresiarchQin on
I always find it funny that some people genuinely think Taiwan can or even SHOULD move their best production to the US. Having TSM on Taiwan is arguably a better (and at least more practical) diplomatic leverage than say having nukes. No sane person would give it up which will probably end up being rug pulled anyway.
britaliope on
also even if it was possible, why the f would taiwan do this ?
zili91 on
The orange thing will have 40% of Taiwan’s microchips at the same time he’ll have Greenland, which is NEVER.
JamesTheJerk on
So, Lutnick is threatening to have Americans pay double the cost for computer chips.
Braaaavo.
Shogun_Ro on
Possible or impossible, it literally makes no sense for their government to support this. Their chip production is the only reason they’re not part of China right now.
jankyt on
Also you can’t force private business to offshore 40% and destroy the local economy and jobs. They aren’t a totalitarian government
RMRdesign on
LOL, so Trump and company think they can build out multiple new fabs in under 4 years? That can build the latest chip designs? If this were possible China would have done so by now.
TremendousVarmint on
If it comes from Lutnick you can safely ignore the matter.
stillgrass34 on
some of those 40% will I assume be done by Intel
Couscousfan07 on
40% of front end production ?
Which idiot in the US provided that target ?
donutseason on
Bullies are abusers. Let’s say no to bullies and abusers all around
santathe1 on
Even if they could, and did, it could get nationalised as some kind of national security thing or an executive order or whatever.
DirectionOverall9709 on
Imagine trying to train up a chip foundry worker then ICE shows up and drags you to a concentration camp in chains.
Niibler on
Taiwan needs to stay relevant and have all the last gen chips made there because that is the only reason the US will (maybe) defend it from a chinese invasion.
This_Loss_1922 on
If they make it possible to please Trump thats the day they lose the right to be to be a separate country from China
I hope they are not so fucking stupid
PommesMayo on
Trumps plan is most likely
Step 1: get a big slice of Taiwanese chip production into the US
Step 2: China invades Taiwan without resistance from the US and damages/destroys their production lines
Step 3: the US now is the biggest producer of semi conductors in the world
DontOverexaggOrLie on
A giga brain take by Lutnik. “If you do not relocate 40% of your chip scientists and engineers to the US, we will make your chips twice as expensive on our market.”
VardaElentari86 on
Well, why on earth would Taiwan do that? (And clearly they agree)
The US can try and build up its own industry if theyre so desperate.
22 Comments
TAIPEI, Feb 9 (Reuters) – It would be “impossible” to move 40% of Taiwan’s semiconductor capacity to the U.S., the island’s top tariff negotiator said, pushing back against recent comments by American officials who called for a major production shift.
In an interview with Taiwanese television channel CTS that was broadcast late on Sunday, Taiwan Vice Premier Cheng Li-chiun said she had made it clear to Washington that Taiwan’s semiconductor ecosystem, built up over decades, could not be relocated.
“I have made it very clear to the United States that this is impossible,” she said, referring to the 40% goal the U.S. has floated.
That ecosystem will continue to grow in Taiwan, Cheng said, adding that the semiconductor industry would keep investing at home.
“Our overall capacity (in Taiwan) will only continue to grow,” she said. “But we can expand our presence in the United States.”
“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.”
On Tuesday, U.S. Commerce Secretary Howard Lutnick said the government needed to bring semiconductors to the U.S.
“You can’t have all semiconductor manufacturing 80 miles from China,” he said. “That’s just illogical … So we need to bring it back.”
“When we leave office my goal, for this administration, is 40% market share in leading-edge semiconductor manufacturing.”
Taiwan and the U.S. reached a deal last month to lower tariffs on the island’s exports to 15% from 20% and for Taiwan to increase its investment in the country.
Cheng said that there would be no relocation of Taiwan’s science parks, but Taiwan was willing to share its experience in building an industry cluster and help the U.S. develop a similar environment.
She also said she was confident that Taiwan’s semiconductor capacity – including existing, under construction and planned projects across advanced manufacturing, advanced packaging and the broader supply chain – would far exceed its investment in the U.S. or any other country.
In an interview on CNBC last month, Lutnick said his goal was to bring 40% of Taiwan’s entire chip supply chain and production to the U.S. He said that if this does not happen, tariffs on Taiwan would likely rise to 100%.
so, what would Trump do?
Everyone knows this except Trump’s gullible followers…
They’re not idiots. If too much chip manufacturing goes to the the US, the US will have no self interest in defending Taiwan. The greed and lack of care for others of US business is now US international policy.
I always find it funny that some people genuinely think Taiwan can or even SHOULD move their best production to the US. Having TSM on Taiwan is arguably a better (and at least more practical) diplomatic leverage than say having nukes. No sane person would give it up which will probably end up being rug pulled anyway.
also even if it was possible, why the f would taiwan do this ?
The orange thing will have 40% of Taiwan’s microchips at the same time he’ll have Greenland, which is NEVER.
So, Lutnick is threatening to have Americans pay double the cost for computer chips.
Braaaavo.
Possible or impossible, it literally makes no sense for their government to support this. Their chip production is the only reason they’re not part of China right now.
Also you can’t force private business to offshore 40% and destroy the local economy and jobs. They aren’t a totalitarian government
LOL, so Trump and company think they can build out multiple new fabs in under 4 years? That can build the latest chip designs? If this were possible China would have done so by now.
If it comes from Lutnick you can safely ignore the matter.
some of those 40% will I assume be done by Intel
40% of front end production ?
Which idiot in the US provided that target ?
Bullies are abusers. Let’s say no to bullies and abusers all around
Even if they could, and did, it could get nationalised as some kind of national security thing or an executive order or whatever.
Imagine trying to train up a chip foundry worker then ICE shows up and drags you to a concentration camp in chains.
Taiwan needs to stay relevant and have all the last gen chips made there because that is the only reason the US will (maybe) defend it from a chinese invasion.
If they make it possible to please Trump thats the day they lose the right to be to be a separate country from China
I hope they are not so fucking stupid
Trumps plan is most likely
Step 1: get a big slice of Taiwanese chip production into the US
Step 2: China invades Taiwan without resistance from the US and damages/destroys their production lines
Step 3: the US now is the biggest producer of semi conductors in the world
A giga brain take by Lutnik. “If you do not relocate 40% of your chip scientists and engineers to the US, we will make your chips twice as expensive on our market.”
Well, why on earth would Taiwan do that? (And clearly they agree)
The US can try and build up its own industry if theyre so desperate.