by AFP Employees Writers
Taipei (AFP) Feb 9, 2026
Taiwan’s high tariffs negotiator stated it will be “unimaginable” to shift 40 % of its semiconductor manufacturing capability to the USA as she rejected claims that the island’s chip trade would relocate.
Taiwan is a powerhouse in producing chips — a vital part within the international financial system — however the White Home needs extra of the know-how 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 needed to shift as much as 40 % of Taiwan’s chip provide chain and manufacturing to the US, warning tariffs might rise sharply if that didn’t occur.
That got here after he instructed 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.
On the subject of “40 or 50 % of manufacturing capability (being) moved to the USA… I’ve made it very clear to the US facet that that is unimaginable,” 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 a long time can’t be relocated.”
She stated “it’s going to solely proceed to develop bigger”.
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