Taiwan said it would be “impossible” to move 40% of its semiconductor capacity to the US, rejecting pressure from US officials for a large-scale shift in chip production, Reuters reported Monday.

Vice Premier Cheng Li-chiun (???) said Sunday that Taiwan has made its position clear to Washington that Taiwan’s semiconductor ecosystem, built over decades, cannot be moved. “I have made it very clear to the US that this is impossible,” she said in an interview with CTS television.

Cheng said Taiwan’s semiconductor industry will continue to expand at home, even as companies invest overseas. “Our overall capacity (in Taiwan) will only continue to grow,” she said, adding that Taiwan can still expand its presence in the US.

“Our international expansion, including increased investment in the US, is based on the premise that we remain firmly rooted in Taiwan and continue to expand investment at home,” Cheng said.

Her comments followed remarks by US Commerce Secretary Howard Lutnick, who said Washington needs to bring more chip production home. “You cannot have all semiconductor manufacturing 80 miles from China,” he said, adding that the administration’s goal is a 40% share of leading-edge semiconductor manufacturing.

Taiwan and the US reached a deal last month to cut tariffs on Taiwan’s exports to 15% from 20%, alongside commitments by Taiwan to increase US investment. Cheng said Taiwan would not relocate its science parks but is willing to share its experience in building semiconductor clusters to help the US develop a similar ecosystem, per CNA.

Lutnick has previously warned that tariffs on Taiwan could rise sharply if a large production shift does not occur, an idea Taiwan has rejected. TSMC, the world’s largest contract chipmaker, is already investing NT$5.21 trillion (US$165 billion) to build factories in Arizona.

By: DocMemory
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