by AFP Employees Writers
Taipei (AFP) Feb 9, 2026
Taiwan’s prime tariffs negotiator stated it might be “not possible” to shift 40 % of its semiconductor manufacturing capability to the US as she rejected claims that the island’s chip business would relocate.
Taiwan is a powerhouse in producing chips — a vital part within the world economic system — however the White Home desires extra of the expertise made in America.
Washington agreed in a deal final month to decrease tariffs on the island’s items to fifteen % from 20 %, whereas Taiwan will enhance its funding within the US.
US Commerce Secretary official Howard Lutnick stated final month that Washington wished to shift as much as 40 % of Taiwan’s chip provide chain and manufacturing to the US, warning tariffs may rise sharply if that didn’t occur.
That got here after he advised US media in September that Taiwan’s chip manufacturing ought to be cut up “50-50” with Washington.
However in an interview broadcast late Sunday by Taiwanese tv channel CTS, Vice Premier and lead negotiator Cheng Li-chiun stated she had made it clear to US officers that Taiwan’s semiconductor ecosystem wouldn’t be relocated.
As regards to “40 or 50 % of manufacturing capability (being) moved to the US… I’ve made it very clear to the US aspect that that is not possible,” Cheng stated.
She added that Taiwan’s semiconductor ecosystem was like an “iceberg”, the inspiration beneath the water is “huge”, including that “an industrial ecosystem constructed up over many years can’t be relocated.”
She stated “it is going to solely proceed to develop bigger”.
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