Taiwan rejects shifting 40% of production

Taiwan's Vice President, Cheng Li-chun, told CTS in an interview that the U.S. plan to move 40% of semiconductor production capacity to Taiwan is "impossible." He emphasized that the country's chip ecosystem, built over decades and including major companies like TSMC, cannot be simply relocated.

Taiwan intends only to increase its own production, not reduce it. In response to U.S. proposals to transfer part of operations, the government stressed it will prepare new investments and strengthen its presence in the U.S. (as TSMC already does in Arizona), but will not move core production facilities.

Taiwan's decision is seen as a firm resistance to U.S. pressure, especially following statements by U.S. Secretary of Commerce Mark Lutnick about possibly imposing tariffs if 40-50% of production shifts.

Taiwan is protecting its "silicon shield"—a key economic lever in the global technology sector. Full relocation of production is unlikely due to complex supply chains, shortage of skilled engineers, and necessary infrastructure.

Conclusion: Taiwan is not ready to sacrifice sovereignty in the microprocessor sector for American assurances.

Context

Taiwan is a key semiconductor supplier; the world's largest producer is TSMC, along with several other companies supporting global chip manufacturing.